The Economic Problems of the Welfare System

Topics: Welfare, Motivation, Welfare trap Pages: 4 (1498 words) Published: August 17, 2013
The Economic Problems of the Welfare System

Economics 405- Economic Problems and Issues

Describe the selected economic problem.
Welfare is a drain on the economic system in America. Developed in the 1930’s, welfare’s intended purpose was to help low income Americans get on their feet, but it turned out to be a slow sinking hole with little help of getting out. The majority of individuals that rely on the welfare system are young single mothers with little education and no child support from the children’s father. While some people use this system as it was intended, there are still some that abuse it. There is another group that uses it and can’t get out which is a cycle that includes their children and their children’s children.

There is such abuse of this system that it is unfair to the rest of society and this causes animosity towards individuals on welfare. There needs to be changes to prevent abuse of the system and make others see it in a different perspective. It should not be seen as a way of life but as a stepping stone to get back into society as a productive citizen.

I have seen firsthand the many examples of welfare recipients getting benefits while lying about their income. Some have their boyfriends living with them while not reporting his income, some work under-the-table (working without paying taxes), others sell their food stamps for cash, and an extreme case of having babies to receive more benefits. We need a better screening for welfare recipients and a way to intercept the illegal abuse of our welfare system. On the other hand, our welfare system is a trap. The recipients of these benefits receive such little benefits that they feel they have to lie to make ends meet. If they work they are penalized and lose their benefits which put them back in the same situation they were in before.

Most welfare recipients live in public housing, which puts them all in one place. They have no exposure to other ways...

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Krannebitter, K. (2008, October 8). Regulate the Welfare Abuse. ArticlesBase. Retrieved September 1, 2012, from
Tanner, M., & DeHaven, T. (2011, September 1). TANF and Federal Welfare | Downsizing the Federal Government. Downsizing the Federal Government. Retrieved September 1, 2012, from
Zilberman, D. (n.d.). Department of Agricultural and Resource Economics EEP 101 University of California at Berkeley. Welfare Economics. Retrieved September 1, 2012, from,Welfare%20Econ.pdf
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