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A Poverty of Imagination: Bootstrap Capitalism, Sequel to Welfare Reform - Softcover

Stoesz, David

 
9780299169541: A Poverty of Imagination: Bootstrap Capitalism, Sequel to Welfare Reform

Inhaltsangabe

Welfare reform was supposed to end welfare as we know it. And it has. The welfare poor have been largely transformed into the working poor, but their poverty persists. This hard-hitting book takes a close look at where we’ve gone wrong—and where we might go next if we truly want to improve the lot of America’s underclass.
    Tracing the roots of recent reforms to the early days of the war on poverty, A Poverty of Imagination describes a social welfare system grown increasingly inept, corrupt, and susceptible to conservative redesign. Investigating the causes of the ongoing failure of welfare assistance, Stoesz focuses on the economic barriers that impede movement out of poverty into the American mainstream. He explores such issues as the heterogeneity of welfare families, generational welfare, inadequate benefits, the negative effects of time limits on welfare recipients, a fringe banking industry that exploits low-income families, the limited capacity of low-wage markets, and the unavailability of credit.
    Stoesz suggests that a form of "bootstrap capitalism" would allow individuals and families to participate more fully in American society and achieve upward economic mobility and stability. This proposal, emphasizing wage supplements, asset building, and community capitalism, sets the stage for the next act in poverty policy in the United States. With its valuable insights on the American welfare system and its positive agenda for change, this book makes a significant intervention in our ongoing struggle to come to terms with widespread poverty in the wealthiest nation on earth.

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Über die Autorin bzw. den Autor

David Stoesz is the Samuel Wurtzel Professor of Social Work at Virginia Commonwealth University. Formerly a welfare caseworker in Connecticut and a welfare department director in Maryland, he is the author of Small Change: Domestic Policy under the Clinton Presidency and coauthor of many books, including American Social Welfare Policy.

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A POVERTY OF IMAGINATION

Bootstrap Capitalism, Sequel to Welfare ReformBy David Stoesz

THE UNIVERSITY OF WISCONSIN PRESS

Copyright © 2000 The Board of Regents of the University of Wisconsin System
All right reserved.

ISBN: 978-0-299-16954-1

Contents

Illustrations..................................................ixPreface........................................................xi1 The End of Welfare...........................................3Welfare As We Knew It..........................................9The Underclass.................................................18Merton's Constant..............................................23The End of Welfare.............................................272 The Old Maternalism..........................................29Mothers' Pensions..............................................30Working-Poor African Americans.................................33Professional Involution........................................36Cultural Politics..............................................46The Nanny State................................................48Left Field.....................................................53Denouement.....................................................573 The New Paternalism..........................................60Controlling the Means of Analysis..............................61Behavioral Poverty.............................................69The New Paternalism............................................72The Family Support Act.........................................74"The End of Welfare As We Know It".............................79Radically Conservative Welfare Reform..........................844 Welfare Behaviorism..........................................87The Conservative Triumph in Welfare Reform.....................88The New Consensus on Behavioral Poverty........................90Welfare-to-Work................................................91Jobs Versus Education..........................................95Learnfare......................................................98Teen Parenthood................................................100Family Cap.....................................................103Paternity......................................................104Time Limits....................................................107Wisconsin......................................................109Diversion......................................................112Excursus.......................................................1145 The Dynamics of Welfare and Work.............................116Welfare Dependency.............................................118Barriers to Employment.........................................121After AFDC.....................................................127Upward Mobility................................................131Welfare Mothers and Work.......................................135Perfecting Welfare-to-Work.....................................1396 Bootstrap Capitalism.........................................142Strategies of Welfare Reform...................................144Capitalism for the Poor........................................148The Renaissance of Bootstrap Capitalism........................151Wage Supplements...............................................152Asset Development..............................................155Community Capitalism...........................................158Networking Capital.............................................161A New Paradigm for Poverty Policy?.............................164Notes..........................................................169Index..........................................................195

Chapter One

The End of Welfare

"What took you so long to get off welfare?" Shot from the audience, the question is aimed at the lone African American woman on stage.

Stunned momentarily, Evont Whitley composes herself and then says, "It wasn't that I waited so long to get a job; it was why someone waited so long to hire me!"

Neither question nor answer does justice to the talk show's subject that morning: welfare reform. To the white interrogator, Whitley is the stereotypical ghetto mother, breeding eight children over 14 years on public assistance before finally getting a job as a result of the state's welfare reform initiative. In counterpoint, Whitley expresses gratitude for the $5.50 per hour cleaning job that got her off welfare, even though her wages are so low that she continues to receive Food Stamps and Medicaid.

But Whitley has chosen to omit some of the details that contributed to her participation in the labor market. After an 11-month and seven-day sentence for drug possession, a job was one part of a plan that would retrieve four of her eight children from foster care. In fact, despite her television appearance as the personification of successful welfare reform, Whitley had found employment before the state's welfare reform was implemented. Thus, stereotype defeated rationality in yet another performance of the nation's welfare reform melodrama.

Just beneath the surface of Whitley's accomplishment-her graduation from welfare-lurk nuances, however. On welfare, she and the four children who are living with her had been getting by on $322 per month in cash benefits, $391 per month in Food Stamps, and Medicaid-$8,556 per year. Welfare helped, she would later admit, but "it also made me lazy, waiting for the check." Whitley describes herself at the time as "wild"-involved with drugs, running a house where clients smoked cocaine. But her sentence for possession followed by the death of her 42-year-old brother from AIDS quickly sobered her up. Work became a compass pointing to the future; her family, the landmark from which all progress would be charted.

Not that finding work was all that easy. Whitley had submitted any number of unsuccessful job applications, finally resorting to a girlfriend who told her about a temporary cleaning job at Commercial Services that might convert to full-time. Whitley jumped at the opportunity. Despite having to work nights on an on-call basis, she is ecstatic: "I love my job. The best thing that ever happened to me was to get off welfare." Eventually, the cleaning job became full-time, even offering overtime, though all her hours were at night and on the weekend. With older children at home, Whitley avoids the high cost of child care. Moreover, she was able to retain Medicaid, so that her employer's failure to provide health insurance is less critical. Once she started working, Whitley's income immediately eclipsed her previous welfare benefits.

Outwardly, Whitley is a sound illustration of "making work pay." At 56 hours per week, her take-home pay minus withholding comes to $14,221.90 a year. With $4,104 in Food Stamps annually, her family hurdles the poverty level of $17,900 for a family of five. In addition, Whitley is eligible for an Earned Income Tax Credit refund of $2,050, which she received for the first time when she started working. Whitley's total income for the year thus comes to $20,375.90.

In this case, however, appearances would be deceiving. Like her personal history, Whitley's economic circumstances are far from simple. She has left three teenagers in foster care with families nearby, and as a result she is paying the state 20 dollars a month per child in child support. The children are doing well, and she is reluctant to disrupt their foster families and bring them back to her; in truth, her small home (less than 1,000 square feet) lacks...

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