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January 1997

Welfare "Reform" Backfires

The new welfare law creates a major disincentive to invest in productivity-enhancing technology and worker training.

By Bennett Harrison

Thanks to a bizarre alliance between a Republican Congress and a Democratic president, almost all welfare recipients are going to have to move into "jobs" of some sort, generally paying the minimum wage. For the first time since the New Deal created Aid to Families with Dependent Children (AFDC), the federal government no longer guarantees, as a right of citizenship, assistance to poor mothers with young children.

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