Social Democratic Capitalism by Kenworthy Lane;

Author:Kenworthy, Lane;
Language: eng
Format: epub
Publisher: Oxford University Press USA - OSO
Published: 2019-05-26T16:00:00+00:00

Social Assistance

What to do about working-age households that have no employed adult has long been the thorniest question in American social policy.35 There is no optimal solution. If we are generous, some will cheat the system. If we are stingy, we cause avoidable suffering. Given this tradeoff, the best approach is a policy that vigorously promotes employment for those who are able, provides a decent minimum for those who aren’t, and deals on a case-by-case basis with those who can work but don’t.

This requires several modifications to what the United States has now. First, we should adjust our approach to caseworkers and the assistance they provide. In theory, caseworkers help Temporary Assistance for Needy Families (TANF) recipients find jobs, but in reality many caseworkers are undertrained, overworked, and have limited means to provide real help.36 For some Americans at the low end of the labor market, adulthood is a series of transitions between part-time or full-time employment, off-the-books work, government benefits, romantic relationships, childrearing, drug or alcohol addiction, and time in jail.37 The best thing we can do is to provide support, guidance, cajoling, and the occasional threat. People who struggle to find a job after leaving school (whether at age twenty-two, eighteen, or earlier) should immediately get individualized assistance. This may include training, counseling, and cash support. Strugglers should be monitored as they move along in life, and helped when necessary. For this to be effective, we need caseworkers who are well trained, connected to local labor market needs, committed to their job, and not swamped with clients. They must be able to make realistic judgments about when clients can make it in the work force and when the best solution is to help them find a path to dignity and social inclusion that isn’t premised on employment.38

Second, TANF’s eligibility restrictions, including the five-year lifetime limit, should be eased. In bad economic times, such as the 2008–2009 recession and its aftermath, the five-year limit has proved too stringent, causing needless hardship.39 We should allow more exemptions during economic downturns. But there is a strong case for relaxing the time limit even when the economy is doing well. Caseworkers should be allowed to make judgments about which clients can make it in the labor force and which ones can’t, about what is best for clients and their children, and about what supports and requirements are most appropriate for them. Some observers don’t like this because they don’t trust caseworkers to be sufficiently strict. (This is akin to favoring “three strikes” laws on the grounds that judges who have discretion about sentencing are likely to be too lenient.) This is an understandable sentiment, but it leads to more suffering than is necessary, or justifiable, in a rich society.40

Third, TANF’s benefit level should be increased. The average AFDC-TANF payment has fallen steadily since 1970, from about $12,000 per recipient family to just $5,000 today.41 Current spending on TANF is about $30 billion per year. Doubling that amount would fund the needed changes. That would cost an additional 0.

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