Providing A Safety Net In this lesson, students will identify the various ways the United States’ government attempts to combat poverty. Students will be able to define and/or identify the following terms: Welfare Cash Transfers In-Kind Benefits Temporary Assistance to Needy Families Social Security

During the Great Depression, many Americans suffered. Poverty rates increased.

President Franklin Delano Roosevelt tried to alleviate the problem by creating programs to help the poor and elderly.

Welfare Welfare is a general term that refers to government aid to the poor. It includes many types of redistribution programs. Tax dollars are used to provide income and services to eligible poor people.

Those below the poverty threshold are considered poor.

Cash Transfers and In-Kind Benefits The government provides cash transfers and in-kind benefits to people in need. A cash transfer is a direct payment of money to eligible poor people. An in-kind benefit is a good or service provided to eligible poor people for free or at greatly reduced prices.

Social Security provides cash transfers to the elderly, the disabled, and the orphan.

Food stamps and legal aid are examples of in-kind benefits. Eligible poor people are provided with food or lawyers.

Temporary Assistance to Needy Families (TANF) Today, the federal government provides money to state governments. State governments must design and run welfare programs. States must adhere to federal rules that create work incentives and establish a lifetime limit for benefits. In the past, there were no limits.

Eligible poor people receive benefits for a limited period of time. While they receive benefits, they are being trained to reenter the workforce and become independent.

The goal is independence.

The Goal of Welfare Reform The goal of welfare reform is to help people in need by providing them with financial assistance as well as opportunities to become independent. Limits exist on welfare to ensure that people are trained and encouraged to reenter the workforce.

The government’s helping hand ensures that Americans have a safety net in difficult times.

Questions for Reflection: What is welfare? Why does welfare exist? What is the difference between cash transfers and in-kind benefits? How does Temporary Assistance to Needy Families differ from past welfare programs? What is Social Security?