Friday, December 12, 2008

Why National's DPB reforms aren't enough

The Americans reached a realisation that welfare was harming families and children during the 1990s. They decided that open-ended welfare must be transformed into temporary assistance only. They abolished Aid To Families With Dependent Children (AFDC) and introduced Temporary Assistance For Needy Families (TANF).

I came across this in the Delaware State Plan;

Five key principles form the foundation of TANF:

1. Work should pay more than welfare.
2. Welfare recipients must exercise personal responsibility in exchange for benefits.
3. Welfare should be transitional, not a way of life.
4. Both parents are responsible for supporting their children; and
5. The formation and maintenance of two-parent families should be encouraged, and teenage pregnancy and unwed motherhood should be discouraged.

If we held current New Zealand policy up to these principles, it would fail. As would National's work-testing-without-a-cap amendment. I will take each principle and show why with just one point;

1/ Having more children raises welfare income. People in work do not get a pay rise when they add children to their family. Hence welfare pays more than work.

2/ Adding children to an existing benefit highlights 5,000 acts of personal irresponsibility every year.

3/ A female can go from being supported as a dependent child on the DPB, to receiving the sickness benefit for her own pregnancy, to receiving the DPB as a sole parent, to receiving to DPB for Women Alone, to receiving Superannuation. Nearly 500 people moved from the DPB to Super in 2006. There is no legislation that prevents a person from choosing this pathway.

4/ The current child support/DPB system actively encourages non-support of children.

5/ Benefits for mothering are available to females from the age of 16 and very few, if any, conditions are imposed. In broad terms money is taken from two parent families and given to one parent families hence the 'formation and maintenance' of the first is discouraged.

All of this will continue unless National has plans afoot we are not yet privvy to.

4 comments:

Anonymous said...

Lindsay

Slight typo in your comment on (1). You say "Hence work pays more than welfare." I think you meant "Hence Welfare pays more than work."

John

Anonymous said...

What you say is very true. Furthermore, National's plan to work-test DPB recipients when their children reach school age will result in more children being raised on the DPB:

http://kiwipolemicist.wordpress.com/2008/11/19/plans-to-get-solo-parents-to-work-will-backfire/

We have 3 or 4 generations that have been raised on the DPB and a major obstacle to reform is this welfare culture. Of course the state loves having people dependent upon it/beholden to it, so it wants to foster the welfare culture. We have a large body of people in NZ who vote for "free" stuff, as Samuel Dennis says in a comment on this post:
http://kiwipolemicist.wordpress.com/2008/10/08/the-liberal-left-agenda-in-new-zealand/

Lindsay Mitchell said...

Thanks John.

Callum said...

It's also interesting to note that these reforms also went hand-in-hand with a massive reduction in crime in America during the 90s.