NCJ Number
58145
Date Published
1975
Length
12 pages
Annotation
A LOOK AT THE 1935 ORIGINS OF THE THREE COMPONENTS OF THE UNITED STATES WELFARE SYSTEM (SOCIAL INSURANCE, CATEGORICAL PUBLIC ASSISTANCE, AND STATE-LOCAL AID) LEADS INTO A REVIEW OF THE NEW YORK CITY WILDCAT EXPERIMENT.
Abstract
WHEN THE SOCIAL SECURITY ACT OF 1935 WAS PASSED, IT WAS INTENDED TO MEET A TEMPORARY NEED. BUT 40 YEARS LATER THE UNITED STATES HAS ESSENTIALLY THE SAME 1935 PROGRAMS. SOCIAL INSURANCE PROGRAMS INCLUDE OLD AGE, DISABILITY, AND UNEMPLOYMENT INSURANCE. THESE PROGRAMS ARE ALMOST UNIVERSALLY APPROVED AND REQUIRE ONLY A SMALL AMOUNT OF PUBLIC SUPPORT OTHER THAN PAYROLL TAXES. CATEGORICAL PUBLIC ASSISTANCE AIDS THE AGED, BLIND, AND DISABLED UNDER THE SUPPLEMENTAL SECURITY INCOME PROGRAM. MANY STATES AND CITIES (ESPECIALLY NEW YORK CITY) ADD TO THIS FEDERAL AID. NEEDY PEOPLE, WHO ARE NOT ELIGIBLE FOR THESE FIRST TWO PROGRAMS, RELY ON STATE AND LOCAL RELIEF PROGRAMS. THIS SYSTEM HAS GIVEN RISE TO A SITUATION IN WHICH THE POOR CANNOT ESCAPE THEIR POVERTY. THE WILDCAT SERVICE CORPORATION BEGAN A NEW YORK CITY PROJECT IN 1972 WHICH USED WELFARE FUNDS, BOLSTERED BY FEDERAL GRANTS, TO PUT UNEMPLOYED EX-OFFENDERS AND EX-ADDICTS TO WORK ON PUBLIC SERVICE PROJECTS. THE PROJECT AIMS TO PLACE PARTICIPANTS IN NONSUPPORTED JOBS. INITIAL RESULTS ARE ENCOURAGING IN THAT OF THE 3,051 SO-CALLED 'UNEMPLOYABLES' WHO ENTERED THE PROGRAM BY JANUARY 1, 1975, 438 HAVE MOVED TO NONSUPPORTED JOBS. THE EXPERIMENT SO FAR SHOWS THAT THE MONETARY BENEFITS OF THIS PUBLIC PROGRAM EXCEED THE COSTS. IN ADDITION, THIS PROGRAM PROVIDES GREATER FLEXIBILITY IN ADMINISTERING WELFARE PROGRAMS AND DEMONSTRATES THAT WELFARE SUBSIDIES CAN BE AN INVESTMENT IN THE FUTURE BY MAKING THE PARTICIPANTS SELF-SUPPORTING. NO REFERENCES ARE INCLUDED.