Final answer:
Poor Americans in the 1970s were incentivized to prove their eligibility for AFDC to receive vital cash payments that supported those living below the poverty line. The transition to TANF in 1996 brought more stringent requirements and limited benefits, highlighting the importance of securing AFDC aid before the change.
Step-by-step explanation:
Poor Americans had strong incentives to establish their eligibility for AFDC (Aid to Families with Dependent Children) in the 1970s because AFDC recipients received much-needed cash payments to support mothers and children who were below the poverty line. The federal government's welfare spending would rise or fall depending on the number of poor people, with states setting their own level of welfare benefits and the federal government chipping in some money. This created an incentive for poor families to secure AFDC benefits to maintain a minimum standard of living, especially given that some state-level programs could not provide adequate support.
The transition from AFDC to TANF (Temporary Assistance for Needy Families) in 1996 introduced significant changes to the welfare system. Unlike AFDC's guarantee of federal matching of state welfare spending, TANF provided block grants to states and placed greater emphasis on work requirements and time limits on assistance. Poor Americans were thus crucially incentivized to prove their eligibility for AFDC before these changes took effect, aiming to secure the comparatively unconditional assistance that AFDC provided.