Showing posts with label welfare reform. Show all posts
Showing posts with label welfare reform. Show all posts

Saturday, February 03, 2018

Neoliberalism and the Democratic Party: welfare "reform"

Since the Democratic Party's remarkable cave-in during the January government shutdown crisis, I've been thinking a lot about important turning points for the Democratic Party that created such a strong sense among the party's Congressional representatives that they have to continually surrender to Republicans on important matters of policy. Even as the Republicans have become more and more aggressive in jamming their their preferred policies through, even when it means altering the rules of the game, both formal and informal.

One of the main programs identified with the Clinton Administration, even its "signature legislative achievement," (Jordan Weissmann) was called welfare reform. Not only was it substantively important. It also was a major concession in which the Democratic Party accepted the long-time conservative and Republican framing of a critical social and economic issue.

"Welfare" is one of those words that are benign in its routine daily usages but can take on negative political connotations in a polemical context. If someone says, "Parents have to take care for the welfare of their children," that has a straightforward meaning, a benign one of well-being. But "welfare" as applied to any kind of social program has a very negative connotation for conservatives, e.g. "loafers," "lazy black people."

The term has generally been applied to income-support payments for the poor. But the Republicans are trying now to expand the (for them) pejorative term to unemployment insurance, Medicaid, Medicare and even Social Security. The term "entitlement programs" also has a similar connotation for them. The latter term was a conscious propaganda innovation of conservatives. Both "welfare" and "entitlement programs" are used to promote an unfavorable attitude toward any kind of program that provides some kind of solidarity or economic support in hard times for ordinary working people.

And, like so much in American politics, criticism of "welfare" was highly racialized, with white conservatives (and some liberals) portraying it a program used and abused by black people. Even though a majority of "welfare" recipients were always white.

The Clinton reform, signed into law in 1996 and taking effect in 1997, replaced an income-support program for parents of minor children called Aid for Families with Dependent Children (AFDC). The replacement program was known as Temporary Assistance for Needy Families (TANF). One of the features of the bill that achieved an important conservative goal is that it gave states much more discretion of the amounts and qualifications for receiving TANF assistance.

The 2016 "Retro" video from The New York Times recounts the history of the 1996 reform from the perspective of its 20th anniversary, Welfare and the Politics of Poverty 06/07/2016. Unfortunately, YouTube is not allowing the video to be embedded at this writing. The video provides numerous examples of the kind of polemical rhetoric used at the time. And the narrator's script appears to be sympathetic to it, despite it's being associated with the "liberal" New York Times. And, of course, there's some Both Sides Do It thrown in.

It quotes St. Reagan declaring, "Welfare has proliferated and grown into a Leviathan of unsupportable dimensions." And it shows Bill Clinton adopting a similar framing, if less hysterically expressed: "Welfare should be a second chance, not a way of life." It was also the case that Clinton emphasized the importance of work opportunities for welfare recipients. In theory, that was a position that liberals and progressives could share. But in practice, any kind of active job programs were not a serious part of the policy mix.

It's important in the context of its effects on Democrats to note that Clinton twice vetoed Republican-backed welfare reform bills on the grounds they were too punitive. But in 1996, he signed one that was quite draconian in its terms and effects. The video quotes Ron Haskins, who was one of the drafters of the Republican bill that Clinton signed, still praising Bill Clinton two decades later for signing it (after 4:00). "Think of a Democratic President that would sign a welfare reform bill like that. President Gore wouldn'a done it. Kennedys would never have done it. There are many Republicans that wouldn'a done a bill as tough as the one that was passed in 1996."

Notice that the narrator in this 2016 film refers to the pre-1996 AFDC as a "once sacred entitlement." Who had considered it sacred is not clear. Conservatives were never among them.

Jared Bernstein recalled the various themes in the welfare reform debate in Reforming Welfare Reform The American Prospect 12/19/2001:
What was Congress trying to achieve? Different people had different goals, and the law reflects these differing views. For some the 1996 law was largely about cutting welfare caseloads or reducing spending; for some it was about promoting work; for some it was about broadening state flexibility, reducing federal authority, and curtailing individual rights; and for some it was about reducing out-of-wedlock births. For much of the public, though, the goal was that people who were able to work should do so. Many in the progressive community shared this goal but feared that the law's approach--freezing federal spending, ending individual rights, imposing time limits, creating strong incentives to cut caseloads--would mean that instead of helping parents enter and progress in the labor force, states would simply restrict assistance for families that needed help. And many progressives feared the consequences if public assistance was denied to families with the weakest labor market prospects in a low-wage labor market that was already failing many of its participants.

Throughout the 1996 debates, discussion of one goal was conspicuously lacking: There was much talk about the need to promote work and reduce welfare, but little discussion of the need to reduce poverty and promote the well-being of low-income families. Instead, both conservatives and, to a great extent, the Clinton administration, created a picture in which the principal problem was seen as too many families on welfare for too long. The obvious solution was to cut caseloads by getting families to leave welfare. [my emphasis]
Apart from any considerations of social solidarity or humanitarian concern, one of the benefits of such income-support programs is that they have "countercyclical" effects. When the economy is expanding, as it was doing in the mid-1990 with the tech bubble and further in the 2000s with the real estate bubble, more people can get jobs and the payments on income-support programs act as a restraint on what economists and the business press like to call "overheating" of the economy. During recessions, the payments expand and provide a stimulative effect to the economy, helping to prevent deflation and shortening the length of the recession. The human and economic-policy cost of the TANF reform became very evident during the Great Recession.

Analyses on the destructive economic effects of the Clinton welfare reforms are in no shortage.

Jordan Weissmann, The Failure of Welfare Reform Slate 06/01/2016:
Despite being home to one of the nation’s most crushing child poverty rates, the state [of Arizona] has all but stopped giving cash assistance to its needy. During 2014, for every 100 poor families with children in Arizona, just 8 families received aid. And even that tiny fraction is likely to shrink. Last year, while trying to chip away at a $1 billion budget deficit, lawmakers lowered the maximum amount of time Arizonans could receive welfare payments before being kicked off the rolls permanently — it’s now just 12 months. ...

The death of welfare in Arizona isn’t an exception; the program has shriveled just as badly in many other states, especially across the Deep South and West. Even in most of the states that are more generous than Arizona about giving benefits to the poor, welfare has still dwindled during the postrecession era. That’s because its funding was never designed to grow along with inflation—or with the U.S. population. For all intents and purposes, welfare is becoming a zombie system rather than the bridge from poverty to work that its reformers envisioned.

And, of course, it was the signature legislative achievement of Bill Clinton’s presidency. [my emphasis]
After 10:35 in the video, we hear Bill Clinton express the vain hope by which he justified signing the bill to Democrats: "After I sign my name this bill [TANF], welfare will no longer be a political issue." Which was true in the sense that the Democratic President had stopped fighting for Democratic priorities and Democratic constituents on "welfare," instead surrendering to the Republican side. A segment from 2014 shows Clinton in 2014 saying that he couldn't have foreseen that there would be a Tea Party movement that would try to scapegoat poor people, i.e., "that would believe, one more time, that poor people are the problem in America."

Which I would have to say if laughably unconvincing. Especially since there were plenty of Democrats in 1996 who did foresee such a thing. It didn't require any special visionary talent to do so. And in the real world, it did nothing of consequence to slow down the radicalization of the Republican Party. If anything, such a consequential surrender on Clinton's part only encouraged it.

But Clinton in that same segment still insisted in 2014 that TANF "did far more good than harm."

The 1996 welfare "reform" was a major step in the neoliberal neutering of the Democratic Party. That was one of the most significant steps on the road that led the Democrats to the historic losses at all levels in 2016. Including Hillary Clinton losing the Electoral College vote to the Orange Clown.

Sunday, June 05, 2016

The ugly legacy of Bill Clinton's bipartisan welfare "reform"

One of the ugliest legacies of Bill Clinton's neoliberal/DLC Presidency is his notorious welfare "reform," aka, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA).

Blatantly bad results were forestalled by the tech boom of the 1990s. But once the inevitable recessions started hitting, and then the 2008 financial crash that wase greatly facilitated by the success of Clinton's financial-deregulation policies, then the ugly sides became obvious to anyone willing to look.

Krissy Clark reports on part of the ongoing bad results in The Disconnected Slate 06/03/2016.

Hillary Clinton's candidacy has provided new opportunities for people to recall what the conservative version of Democratic economics looks like in practice. Bryce Covert recalls in No, Bill Clinton, You Can’t Blame Welfare Reform’s Failures On Republicans Think Progress 04/08/2016:

It’s true that there was a large drop in black poverty under Clinton’s presidency, with the share of black families in poverty falling from about 33 percent when he took office to just under 23 percent by the time he left. But that downward trend began long before welfare reform was signed into law in 1996, and it was short-lived. By 2002, the rate started climbing again as the country entered a recession.

The same story played out with poverty generally. While the booming economy of the 1990s provided enough jobs such that people who were forced to work in order to receive welfare benefits were able to find them, as soon as the economy faltered that story faltered as well and recipients fell into hard times. The work requirements have been repeatedly found to significantly increase financial hardship for those who lose benefits because they can’t find work.

Meanwhile, after reform, welfare was less and less able to help those at the very bottom. The number of families living at half the poverty line, or less than $12,000 a year for a family four, is higher now than in 1996, and extreme poverty — families who live on $2 or less per person a day — has risen 159 percent since then, especially among those who were most directly impacted by welfare changes.
The Clinton-Obama brand of neoliberalism doesn't entirely reject Keynesian countercyclical economic policies, aka, bonehead macroeconomics. When Obama took office in 2009, he got enough of an economic stimulus bill passed with Democratic majorities in Congress to restimulate the economy to a significant extent. Even the Cheney-Bush Administration's panic over the 2008 crisis lead them to bail out some banks in an attempt to stabilize the economy.

But Obama clearly believes in neoliberal, i.e., anti-Keynesian/Herbert Hoover/Angela Merkel economics. That's why even in 2009 he proceeded with setting up the infamous Simpson-Bowles Commission to promote cutbacks in Social Security and promote general domestic spending cutbacks when the US and world economies clearly needed active contracyclical stimulus for a while yet.

See also:

Alejandra Marchevsky and Jeanne Theoharis, Why It Matters That Hillary Clinton Championed Welfare Reform The Nation 03/011/2016

Joshua Holland, How Bill Clinton’s Welfare “Reform” Created a System Rife With Racial Biases Moyers & Co 05/12/2014

David Ellwood gave a contemporary account on the process of enacting welfare "reform" in Welfare Reform as I Knew It: When Bad Things Happen to Good Policies The American Prospect May-June 1996

Frances Fox Piven, since built into some bizarre Obama conspiracy theory by Glenn Beck, responded to Ellwood's article in Was Welfare Reform Worthwhile? The American Prospect July-Aug 1996. The online version misleadingly shows only Ellwood himself as the author; he actually just has a brief rejoinder at the end. But Piven writes:

Clinton was using the welfare issue not as an opportunity to relieve poverty, but as an opportunity to gain support by inciting popular indignation at welfare. Welfare reform became an argument about why poor women were to blame for so much that was wrong with America. No wonder the administration has been so reluctant to refuse even the most draconian state requests for waivers. After 1994, of course, the Republican Congress quickly snatched back the welfare issue, which the Clinton administration has helped to heat up.

Ellwood thinks the diverse Republican efforts at welfare spending rollbacks, work enforcement, benefit cuts, strict rules, and devolution to the states are contradictory, without "shared conviction." I think he again misses the point. These policy proposals are not mainly about the design of rational interventions in social life. Rather, they continue, unmodulated by any liberal compunctions, the political strategy begun by Clinton, of pointing to the failures of poor women as an explanation for the cultural ruptures and economic insecurities of contemporary American life.

And real welfare reform is less likely than ever.