[net.politics.theory] Have welfare programs hurt the poor?

carnes@gargoyle.UUCP (Richard Carnes) (08/22/85)

In article <28200051@inmet.UUCP> nrh@inmet.UUCP writes:

>If you want a lot of evidence for this, I suggest you read Charles
>Murray's "Losing Ground".  In brief, the welfare state has harmed those
>it wished to help, and so far (a social-worker friend tells me) the best
>that any liberal publication has been able to do is grumble that maybe
>things would have been even worse if the welfare state hadn't been around.

Christopher Jencks gives Murray a point-by-point refutation in the
May 9, 1985 *New York Review*.  Jencks basically concludes that
*Losing Ground* is poor sociology, although it addresses some
important and interesting questions.  

To begin with, contrary to Murray's claim, it is not true that the
*material* condition of the poor deteriorated between 1965 and 1980.
First, the official poverty rate declined from 1950 to 1980:

	1950	1960	1965	1970	1980
P.R.	  30	  22	  17	  13	  13   %

(It has gone back up to ~16% since 1980.)  In addition, the official
poverty line represented a higher standard of living in 1980 than in
1965, because of a flaw in the way the Consumer Price Index measured
housing costs.  Furthermore, the official statistics do not take into
account the in-kind benefits provided by welfare programs such as
food stamps and low-cost medical care and housing.  Jencks:  "In
1965, Medicare and Medicaid did not exist, food stamps reached fewer
than 2 percent of the poor, and there were 600,000 public housing
units for 33 million poor people."  Taking these benefits into
account, Jencks estimates the "net" poverty rate at 18% in 1965 and
at 10% in 1980.  Another consideration is that the *access* of the
poor to medical care has improved since the 60's, resulting in an
improvement in poor people's health.  Statistics on infant mortality
and life expectancy seem to bear out this claim.

If I have time later on I will discuss Jencks' reasoning in more
detail, but for now I will just quote some of his conclusions:

"First, contrary to what Murray claims, `net' poverty declined almost
as fast after 1965 as it had before.  Second, the decline in poverty
after 1965, unlike the decline before 1965, occurred despite
unfavorable economic conditions, and depended to a great extent on
government efforts to help the poor.  Third, the groups that
benefited from this `generous revolution,' as Murray rightly calls
it, were precisely the groups that legislators hoped would benefit,
notably the aged and the disabled.  The groups that did not benefit
were the ones that legislators did not especially want to help.
Fourth, these improvements took place despite demographic changes
that would ordinarily have made things worse.  Given the
difficulties, legislators should, I think, look back on their efforts
to improve the material conditions of poor people's lives with some
pride....

"Murray's explanation of the rise in illegitimacy thus seems to have
at least three flaws.  First, most mothers of illegitimate children
initially live with their parents, not their lovers, so AFDC rules
are not very relevant.  Second, the trend in illegitimacy is not well
correlated with the trend in AFDC benefits or with rule changes.
Third, illegitimacy rose among movie stars and college graduates as
well as welfare mothers.  All this suggests that both the rise of
illegitimacy and the liberalization of AFDC reflect broader changes
in attitudes toward sex, law, and privacy, and that they had little
direct effect on each other."  [end of quote from Jencks]

Murray, in discussing the percentage of people who fall below the
poverty line when transfer payments from the government (Soc. Sec.,
AFDC, etc.) are ignored, calls this "the most damning" measure of
policy failure, because "economic independence -- standing on one's
own abilities and accomplishments -- is of paramount importance in
determining the quality of a family's life."  Jencks comments:  "This
is a classic instance of wishful thinking.  Murray wants people to
work (or clip coupons) because such behavior keeps taxes low and
maintains a public moral order of which both he and I approve, so he
asserts that failure to work will undermine family life.  He doesn't
try to prove this empirically; he says it is self-evident.  But the
claim is not only not self-evident; it is almost certainly wrong....

"While I share Murray's enthusiasm for work, I cannot see much
evidence that changes in government programs significantly affected
men's willingness to work during the 1960's.  When we look at the
unemployed, for example, we find that about half of all unemployed
workers were getting unemployment benefits in 1960.  The figure was
virtually identical in both 1970 and 1980.  Thus while the rules
governing unemployment compensation did change, the changes did not
make joblessness more attractive economically.... Since black women
receive about half of all AFDC money, Murray's argument implies that
as AFDC rules became more liberal and benefits rose in the late
1960s, unemployment should have risen among young black men.  Yet
Murray's own data show that such men's unemployment rates fell during
the late 1960s.  Murray's argument also implies that young black
men's unemployment rate should have fallen in the 1970s, when the
purchasing power of AFDC benefits was falling.  In fact, their
unemployment rates rose.... Murray is so intent on blaming
unemployment on the government that he discusses alternative
explanations only in order to dismiss them....

"As Murray rightly emphasizes, no society can survive if it allows
people to violate its rules with impunity on the grounds that `the
system is at fault.'  Murray also argues that the liberal impulse to
blame `the system' for blacks' problems had an important part in the
social, cultural, and moral deterioration of black urban communities
after 1965.  The such deterioration occurred in many cities is beyond
doubt.... All this being conceded, the questions remains:  were all
these ills attributable to people's willingness to `blame the
system,' as Murray claims?... Murray is right to emphasize that the
problem was worst in black American communities.  But recall that his
explanation is that `we -- meaning the not-poor and the
un-disadvantaged -- had changed the rules of their world.  Not our
world, just theirs.'  If that is the explanation, why do all the same
trends appear everywhere else as well?

"*Losing Ground* does not answer such questions.  Indeed, it does not
ask them.  But it does at least cast debate over social policy in
what I believe are the correct terms.  First, it does not simply ask
how much our social policies cost, or appear to cost, but whether
they work.  Second, it makes clear that a successful program must not
only help those it seeks to help but must do so in such a way as not
to reward folly or vice.  Third, it reminds us that social policy is
about punishment as well as rewards, and that a policy that is never
willing to countenance suffering, however deserved, will not long
endure.  The liberal coalition that dominated Washington from 1964 to
1980 did quite well by the first of these criteria:  its major
programs, contrary to Murray's argument, did help the poor.  But it
did not do as well by the other two criteria:  it often rewarded
folly and vice and it never had enough confidence in its own norms of
behavior to assert that those who violated these norms deserved
whatever sorrows followed."

>More evidence?  How about "The State Against Blacks"
>by Walter Williams.  

How about *The New American Poverty* by Michael Harrington, as long
as we are throwing books at each other.

Richard Carnes, ihnp4!gargoyle!carnes