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Unformatted text preview: some MYTHS about What are some MYTHS about welfare recipients? Myth: Welfare rolls are increasing. Myth: Welfare families are large. Welfare numbers increase as the overall population increases, as a percentage of the overall population. The percent of people on welfare has stayed about the same. (This trend may have changed, given the recent economic/financial crisis over the past two years).
Size of families on welfare is similar to families not on welfare. Myth: People on welfare live comfortably because they abuse the welfare system. Seven states with the most generous welfare programs bring recipients up to the poverty level, all other states live below the poverty level. What are some MYTHS about What are some MYTHS about welfare recipients? Myth: Welfare recipients are too lazy to get a job. About 2/3 of those on welfare are children, and under TANF, single parents are required to enter training programs and to work to be eligible for benefits. Myth: The federal government only helps people on welfare. The federal government helps wealthy corporations spending over $160 billion annually
(In one year, $1400 per taxpayer was paid in “corporate welfare” compared to $400 per taxpayer to the poor) Institutional Classism
Institutional Classism Institutional policies and practices that EXPLOIT lowincome people and BENEFIT middleor upperclass individuals. How can institutions exploit poor How can institutions exploit poor people? Banks require minimum balance for checking.
Poor people exploited by check cashing stores. Excessive fees of up to 10% of their paycheck. Private lenders charge higher interest rates.
State Lottery. Class determines
A.The schools students attend
B.Restaurants you eat in
C.The community in which you live
D.All of the above Poverty Trap
Poverty Trap Any selfreinforcing mechanism which causes poverty to persist. Example: Individual goes from making $25K a year to $35K a year. Loses free health insurance. Now pays $230/mo.
Rent went up 30% due to income gain in section 8 housing.
Loses $280/mo subsidized child care voucher.
Loses $1600/yr EITC.
Had to pay additional payroll taxes on additional income.
Pays $300/mo in additional miscellaneous charges associated with new job (driving, parking, meals, etc.) Poverty Trap
Salary 25000 Salary 35000 Monthly 2083.333 Monthly 2916.667 After taxes 1666.667 After Taxes 2041.667 Child Care 280 HealthCare 230 EITC 133.3333 Additional Rent
Misc Charges Left Behind
Yearly 2080 Left Behind
24960 Yearly 200
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This note was uploaded on 10/02/2013 for the course AGR 201 taught by Professor Staff during the Fall '09 term at Purdue University-West Lafayette.
- Fall '09