Question

After the U.S. welfare system was reformed in 1996, the number of welfare cases fell by more than half. Explain why this does not necessarily mean that the number of people living in poverty was also cut in half during these years?

Answer 1

The decrease in welfare cases after the 1996 reforms does not necessarily mean that the number of people living in poverty was cut in half. The reformed welfare system had new limits and work requirements that reduced welfare rolls but did not guarantee an escape from poverty for all individuals.

Step-by-step explanation:

After the U.S. welfare system was reformed in 1996 with the Personal Responsibility and Work Opportunity Reconciliation Act, commonly known as the welfare reform act, the number of welfare cases indeed fell by more than half. However, this decrease in welfare recipients does not necessarily correlate with a decrease in the number of people living in poverty. One key reason is that the reformed system, which replaced Aid to Families with Dependent Children (AFDC) with Temporary Assistance for Needy Families (TANF), set limits on how long individuals can receive benefits and included stringent work requirements. Although welfare caseloads decreased, the data does not necessarily indicate an increase in employment sufficient to lift individuals out of poverty. Additionally, economic downturns could potentially lead to former welfare recipients losing jobs, potentially not reflected in welfare statistics, but certainly impacting poverty levels.