Examine the major social problems that federal welfare programs are designed to alleviate. 1. Poverty: Family of four (2006) 20,614 The official poverty rate in 2006 was 12.3 percent, down from 12.6 percent in In 2006, 36.5 million people were in poverty, not statistically different from Poverty rates in 2006 were statistically unchanged for non-Hispanic Whites (8.2 percent of 195 million), Blacks (24.3 percent of 36 million), and Asians (10.3 percent) from The poverty rate decreased for Hispanics (20.6 percent of 43 million in 2006, down from 21.8 percent in 2005).

For children under 18 years old and people aged 18 to 64, the poverty rates (17.4 percent and 10.8 percent, respectively) and the numbers in poverty (12.8 million and 20.2 million, respectively) remained statistically unchanged from Both the poverty rate and the number in poverty decreased for people aged 65 and older (9.4 percent and 3.4 million in 2006, down from 10.1 percent and 3.6 million in 2005) Nearly 13 million American children live in poverty - the number increased by 11 percent between 2000 and There are 1.2 million more children living in poverty today than in 2000.

2.Unpreparedness for gainful employment: 1996 Welfare Reform Act ended six decades of federal guarantees of cash assistance to poor families replacing it with a system of cash grants to states. This was to create incentives to encourage states and welfare recipients to get to work. An all-time high 85 percent of U.S. adults age 25 and over had completed at least high school in The states with the highest high school graduation rates were New Hampshire, Minnesota and Wyoming, all around 92 percent. Asians had the highest proportion of college graduates at 50 percent. About 30 percent of non-Hispanic whites and 17 percent of blacks had a least a bachelor’s degree. In 1993, 24 percent of non-Hispanic whites and 12 percent of blacks were college graduates. Hispanics with high school diplomas rose from 53 percent in 1993 to 57 percent. About 11 percent had bachelor’s degrees, up from 9 percent.

YearTotalMaleFemale %27.8%26.7% High School Dropout Rates by Sex and Race/Ethnicity, 1960–2004

YearWhiteBlackHispanic 1960——— %27.9%— % High School Dropout Rates by Race/Ethnicity, 1960–2004

(To stay out of poverty in America, it's necessary to do three things, social scientists have found: finish high school, don't have kids until you marry, and wait until you are at least 20 to marry. Do those three things, and the odds against your becoming impoverished are less than one in ten. Nearly 80 percent of everyone who fails to do those three things winds up poor. ) 3. Income inequality: Top 20% receive half the total income – 80% receive the other half. Bottom 20% receive less than 5%. Top 5% receive the same as bottom 50% Top 10% of income tax payers pay about 50% of all income tax revenue.

4. Unemployment/poverty/old age: In 2005, the federal government spent $2.3 trillion, up 6 percent from Social Security, Medicare and Medicaid spending accounted for almost $1.1 trillion in 2005, nearly half of total federal spending and an 8 percent increase over Defense Department spending totaled $374 billion in 2005, an 8 percent increase over 2004, and was highest in California, Virginia, Texas, Florida and Maryland. Five states – California, New York, Texas, Florida and Pennsylvania – received one-third of all federal funds in Per capita federal spending among states was highest in Alaska ($13,916), Virginia ($12,572), Maryland ($11,936), New Mexico ($10,698) and North Dakota ($10,413). Los Angeles County, Calif., led the list of entities below the state level receiving federal funds, followed by New York City, N.Y.; Cook County, Ill.; San Diego County, Calif.; and Maricopa County, Ariz.

Is the US welfare system both too inefficient and inequitable? Too complex with too many separate programs, often overlapping, eligibility criteria often absurd e.g. failure to qualify for medical assistance if one earns a few dollars per month more than required. Too bureaucratic – possible savings with universality. Social security and Medicare should go only to the needy?