In May my lovely wife, Stephanie, and I celebrated our 10-year anniversary with a fantastic trip to San Francisco and Sonoma. We left the kids with her family and took more than a week off of work to celebrate the milestone. In August, the United States will celebrate the 10-year anniversary of Welfare Reform; and millions of people who were once off of work for years are now back to picking up paychecks and contributing to society. They, too, should be celebrating thanks to legislation that challenged them to improve.
This Tuesday's USAToday, as well as several other newspapers and magazines, spent a good deal of ink covering the stats and stories that have come from this landmark reform. By and large it is celebrated as a rare government reform success story. Back in 1996 a Democratic President (Clinton) and Republican Congress united to pass legislation aimed at getting costs down and employment up. For years, growing welfare rolls were bursting the budgets and something had to be done.
The Welfare Reform legislation itself is an outstanding example of Challenge Dividend thinking in action. Before the law, the poor were essentially guaranteed cash aid forever. The reform started with a test in various states, that was then rolled out nationally. Incentives were used to encourage work. For example, by holding a job, poor families were rewarded with government funding for child care, job training and transportation. Refuse work, and the benefits dry up after five years. The results have been dramatic: The number of families on welfare has declined 63%, from 5.1 million in '94 to 1.9 million in '05.
Like any long marriage, the reform hasn't been all roses. Many of the jobs people take are low-paying and offer few benefits. Some families who are eligible find the new process a barrier. But overall, the fears of doubters ten years ago have been proven false.
Getting people into work was the key to the success of this legislation. By building incentives to work, we not only improve federal and state coffers, but we improve the individual person, his or her family, and society as a whole. Working people build self-esteem, they find an avenue to self-sufficiency, and they serve as positive role models for their children. This was a challenge to those who simply relied on ongoing handouts, but it has improved millions of lives and instilled a work ethic in millions more poor children.
I think the best story comes from the people themselves. Lisa Perry, for instance, was one of the first to feel the legislation impact in 1996:
The changes in welfare "showed me how to be a stronger person and a better role model for my kids. It just makes me feel good to get up everyday to work."
This and millions of stories like it are a real reason to celebrate.
Comments