The rate of poverty in the United States in 1964 was around 19%. The then President Lyndon Johnson declared war on poverty. Approximately $12 trillion has since been spent on the fight against poverty. However, the rate of poverty has never gone below 10%. Currently it is estimated to be close to 15.1%. This shows that the welfare system is ineffective towards the fight against poverty. Welfare programs include the cash benefit programs among others. A common example is the Temporary Assistance to Needy Families. The federal government currently funds 126 welfare programs with the goal of lowering poverty rates. Through these programs, low income earners receive food, medical care, housing or cash. The eligibility of the beneficiary has to be determined before he or she receives aid. Other welfare programs assist homeless groups, migrants and the disabled.
In 2011, the 126 welfare programs received approximately $668 billion dollars from the federal government to help fight poverty. This represented a significant increase experienced under President Barack Obama. Both the local and state welfare spending will be even higher this year. Each poor citizen in America receives aid worth $20,610 from the government. This amounts to $61,830 for every poor family of three. The poverty threshold is at $18,530. This means that, in theory, poverty should be a thing of the past in America. In reality, many poor families do not receive the expected amount. In addition, the strategies employed by the welfare programs are ineffective and; therefore, the aid is received by those above the poverty line. Despite so much money channeled into the fight against poverty, welfare programs have not reduced poverty.
Medicaid welfare program is the largest in the country. It provides health care aid for the poor. In 2011, it was allocated $228 billion. Food stamps welfare program is the second largest. In 2011, it cost taxpayers $70 billion. The welfare programs benefit at least 196 million Americans. About 48 million Americans benefit from Medicaid. Close to 41 million benefit from food stamps programs. This represents around 15% of the total population, the highest ever in the history of the United States. As time goes by, the number of people reliant on the government, for their livelihood, is increasing.
In 1965, the amount of money channeled, by the federal government, into welfare programs was $178 billion. In 2011, the amount spent was $668 billion. This represented a 275% increase in welfare spending. In terms of percentage of GDP, the increase was from 0.83% of GDP to 4.4%. On the recipient basis, the federal spending increased from $1,625 to $14,848. The aid has increased significantly in areas such as housing, food and medicare. The increases have been attributed to recession which results into high rates of unemployment. Furthermore, the programs have changed their eligibility rules by including more non-poor people as eligible beneficiaries. If the trend continues, it is projected that, by 2014, the spending on welfare programs will be $1 trillion every year. This means that, over the next ten years, the government might spend $250,000 on every poor American. With all this spending, the poverty rate has remained relatively constant. During the 1990s, the rate dropped appreciably due to the national welfare reform. From 2006, the rate has been on a rise regardless of the high spending.
The fight against poverty through welfare is ineffective. The programs focus mainly on making poverty comfortable. The people receive shelter, food, health care and other services. The government should, instead, come up with programs, which will help the poor to escape poverty. For instance, programs that encourage young people to complete school, avoid pregnancy before marriage and look for jobs. High school dropouts have a higher chance of ending up in poverty than those who finish high school. The number of poor full-time workers is low. Economists have also said that the way out of poverty will not come from the consumption of aid from welfare programs, but from working, saving and accumulating wealth. The government, should, therefore, put more effort towards the creation of jobs. On the brighter side, welfare programs have fight poverty. Evidence show that, without the huge spending, the poverty level would be much higher, in the United States. Despite failing to remove many citizens from poverty, welfare programs made the citizens less poor.
The rates of poverty have gone up with the increase in spending on welfare programs. This shows that welfare program expansion is ineffective in fighting poverty. It may; however, be achieved if the government will create conditions that promote prosperity rather than dependency. Unlike poverty, which is a natural condition, prosperity is created. A free market would help to create wealth, and can be achieved by lowering taxes, do away with regulations that hinder the creation of jobs, capital investment protection and create a conducive environment to start a business. Moreover, poor citizens should be urged to save and invest
Works Cited
Fisher, Robert J. The Morning Call. 10 January 2012. 29 November 2012
Halper, Daniel. Over 100 Million Now Receiving Federal Welfare. 08 August 2012. 29 November 2012
Halper, David. Over $60,000 in Welfare Spent Per Household in Poverty. @^ October 2012. 29 November 2012
Tanner, Michael. "The American Welfare State: How we Spend Nearly $1 Trillion a Year- and Still Fail." Cato Institute (2012).
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