The Myth That Conservative Welfare Reform Worked--Part 5

by: Paul Rosenberg

Sat Mar 13, 2010 at 16:00


Where We've Been: This is Part Five in my diary series, "The Myth That Conservative Welfare Reform Worked".  Part 1 began this project by debunking the conservative narrative that liberals and Democrats were uninterested in reforming welfare, drawing principally on Diana Zuckerman's artlce, "Welfare Reform in America: A Clash of Politics and Research ", published in the Journal of Social Issues, Winter 2000 (pp587-599).  Part 2 began the presentation of a five-section argument with the first two sections, "Section 1: The Rightwing Hegemonic Framing Of Welfare Reform" and "Section 2: A Common-Sense Take-Down of the 'Welfare Reform Worked' Myth".  Part 3 was devoted to a detailed debunking of Charles Murray's Losing Ground.  This part will look at National US data, both long-term trends and a set of snaphsots. Part 4 dealt with national data--both long-term trends and a set of four snapshots--showing that (a) poverty is linked to scarcity of jobs (as represented in the unemployment rate), (b) teen pregnancy and birth rates were declining well before "welfare reform" and continued (but did not accelerate) their decline afterwards, (c) the social safety net was doing an increasingly good job of fighting poverty before "welfare reform", and (d) the adoption of "welfare reform" had significant negative impacts on those in poverty, even though there were off-setting factors that prevented things from getting as bad as they might have.

Section 4: The US In International Comparison

In this section, we examine the international data, comparing the US to other countries.  We examine both the economic data and the data related to fertility, particular for teenagers.  In both cases, we find that the US is an outlier for advanced industrial nations, indicating that rather than taking conservative precriptions that would make us even less like other countries, we should take more liberal prescriptions that would make us more like others.

Economic Data

Our economic data comes from a number of studies--known as "working papers" based on the Luxembourg Income Study (LIS) database. First is Working Paper # 379, "Welfare State Expenditures and the Distribution of Child Opportunities", by Irwin Garfinkel, Lee Rainwater and Timothy Smeeding, which provides series data that allows us to compare trends of a period of years.

The first chart compares the US and Mexico (a developing nation) to the averages of four groups of nations: Anglo nations, Scandanavian nations, Northern European nations, and Central/Southern European nations.  The nations in each group are listed in the text below the chart area. As can be seen, the US is far below the average of all the other groups, and indeed is closer to Mexico than it is to any of the other developed nation groups:

The Anglo nations are generally the lest generous, and culturally the most similar to the US.  It's therefore instructive to compare the US to the other Anglo nations. As can be seen, the US only exceeded Australia briefly at the beggining of the period studied.  After that, it was significantly below the rest, particularly after about 1990, when the spending levels in all other countries began rising far more significantly than in the US.  (Recall from Part 4 that the US social safety net was significantly strongly during the early 1990 recession than it had been 10 years earlier.  But the increase is quite minor compared to the increases in other Anglo countries.)

Paul Rosenberg :: The Myth That Conservative Welfare Reform Worked--Part 5
Unsurprisingly the US has had a significantly higher poverty rate than comparable European nations, as can be seen in the following chart derived from the OECD Statistics Database:



Next we look at comparative aggregate data from LIS Working Paper #419:

"Poor People in Rich Nations: The United States in Comparative Perspective", by Timothy Smeeding.  Taking the Figure 2 first, we see that, as expected, low pay is correlated with higher poverty rates: the higher percentage of workers making less than 65% of the median wage, the higher the rate of non-eldgerly poverty.  The US represents the extreme high on both scales, but its poverty rate is even more divergent than its low-wage worker rate, as can be seen most strikingly in comparison with Canada, which has almost as many low-wage workers, but a significantly lower poverty rate:

Figure 1 shows another expected relationship:  the higher the level of social expenditure, the lower the rate of poverty.  Again, the US represents an extreme, even more of an outlier than in the previous chart:



Next, another paper by Timothy Smeeding, LIS Working Paper # 426, "Government Programs and Social Outcomes: The United States in Comparative Perspective", provides a more detailed look at how different sorts of families are affected.  A major premise of conservative "welfare reform" was that poverty is primarily a product of family disintegration. (A contrary view is that the causation runs the other way: men don't get married when they can't support a family.)  However, the data in Table 6 shows that the US does a dramatically worse job of reducing poverty for two-parent families as well as for single-parent families:

When it comes to single-parent families, the US barely reduces poverty half as much as Canada, the next-least effective country at reducing single-parent family poverty.  The average poverty-reduction rate for such families is almost four times greater than the US manages.

But things are even worse, relatively speaking, when it comes to two-parent families.  The overall poverty reduction for them is barely one-quarter what it is for the Netherlands, the next-least effective coutnry at reducing two-parent family poverty.  The average poverty-reduction rate for such families is almost is almost nine times greater than the rate for the US.

Economic Data Conclusion

The LIS data described above--buttressed by OECD data--clearly indicates that the US is an outlier that provides a significantly less robust system of economic support for those on the bottom of the economy.  It's wage rates are less able to keep people out of poverty, and its welfare state provisions are less capable of compensating for low wages.  This is a condition that has changed significantly over time, and the US is even less capable of assisting those in two-parent families--compared to other nations--than it is assisting single-parent families.

Thus, everything in the comparative international data contradicts the claims of conservative "welfare reform" and those who call it "a success".

However, it's also instructive to look at comparative data about maternal employment and teenage childbearing, since that played such a significant role in the conservative narrative about welfare and "welfare reform."  Hence, the next part of this diary


Family/Parenthood Data

We begin with date from the OECD Family Database.  First, we look at comparative data on the relationship between maternal employment and child poverty.  As expected, the general trend is that as maternal employment goes up, child poverty goes down.  However, the US has very high rates of child poverty, despite a fairly high ratio of mothers in the workforce:

It's also worth noting that the countries with the most mothers in the workforce are the socialist bogeyman, Sweden, and its social democratic welfare state cousins, Finland and Denmark (data for Norway was not available.)

Next, we look specifically at teenage fertility rates (including live births, abortions and fetal loss), comparing data from 1980 and 2005.  For clarity's sake, we present the data in three separate graphs, starting with all those who had 1980 rates over 40 per 1000, which includes the US.  We carry the US over into the next two graphs as well, for comparison's sake:

Here we see that while the US was in the middle of the range of high-fertility countries in 1980, the other countries did a much better job of reducing teen fertility over the next 25 years.

Note that none of the other countries in this top tier of highest teen fertility in 1980 can be considered major industrial nations.  They are primarily nations from the European perisphery: Eastern Europe, or the Mediterean.  The only Northern European country is Iceland, also, in its own way, a peripheral nation.  Nonetheless, by 2005, only Bulgaria had a rate comparable to the US--a rate that it had cut in half since 1980, while the US had only managed a much smaller decline.

The middle group, with 1980 teen fertility rates from 20 to 40 per 1000, includes a few more peripheral states, such as Poland, Latvia and Lithuana, along with more long-standing industrial nations, such as Austria, the UK, Norway & Belgium. The US both started, and finished with a much higher teen fertility rate than any of these nations.  To the extent that conservative "welfare reform" was supposed to discourage teen pregnancies, it was significantly less effective in its end results than the social policies in any of these other nations:

Finally, we compare the US with nations that had teen fertility rates of 20 per 1000 or less in 1980.  With the exception of Malta, which saw teen fertility rates rise significantly, all these countries started and ended with far lower rates than the US.  These included Germany, France, Italy, Switzerland from the core of Europe, plus 2/3rds of the BeNeLux countries (Belgium just barely made it into the middle group), as well as all the Northern European social democratic welfare states except Norway, which was also in the lower end of the middle group:


For additional confirmation, and insight into some of the causal factors involved, we turn to a report from the Guttmacher Institute, "Teenage Sexual and Reproductive Behavior in Developed Countries: Can More Progress Be Made?"

First we see a somewhat different time-frame tracking changes in teenage fertility rates comparing the US with several other nations:

Once again, other nations started off significantly better, and ended up signiticantly better as well.

The rest of the data presented is snapshot data from the mid-1990s, and the US improved since then.  Nonetheless it remained a relative outlier.  First we see how dramatically the US differed both in terms of births and abortions:

And yet, despite higher rates of sexual activity before age 15 in the US, the overall profiles of teenage sexuality are relatively comparable between all the countries compared:

However, there are more significant differences in the use of contraceptives:


Family/Fertility Data Conclusion

The bottom line is that the US is significantly more invested in shaming teenage girls.  When shame stops working as a way to prevent them having sex, the results are dramatically higher fertility, abortion and pregnancy rates than seen in other countries.  This is all a part of the same underlying conservative mentality of blaming those with the least power, status, and capacity to exercise their own autonomy that was embodied in conservative "welfare reform."  Put simple, it does not work, and it is downright dangerous and irresponsible to pretend otherwise.


General Conclusion

International comparisons are conclusive: US performance in fighting poverty as well as fighting teenage pregnancy is severely deficient compared to similar devloped countries.  If we were genuinely interested in solving these problems, we would be paying a great deal more attention to how other coutnries deal with them. Not that we should necessarily copy them exactly, but we should be guided by the underlying principles that work for them, and by the hard data that tells us our chosen approach does not work.

Next & Last:  We look at data comparisons between states, to see what is relatively success in the US.


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Perhaps the problem is the American Way (4.00 / 2)
It seems our electoral democracy results in herky jerky outcomes that are little more than a patchwork of contemporary urges.  The conservative versus liberal ideology struggle jerks the line graph back and forth like a lightening bolt.  There seems to be no long term dedication to a specific goal or outcome.  Rather, benevolence seems to be a result of relative era affluence.  

The American psyche has always eschewed the loser and until poverty comes home to roost, it seems our mood for benevolence is often less obvious.  We saw great movement from 1932 to 1968 to create a social safety net.  The enlightenment that this country seemed to reach for grew significantly during that period. Including the diminishment of shame for teenage pregnancy.  But as the economic problems abated, not so much. Indeed, during the last thirty years, the less fortunate have been vilified as the truly greedy ones by the right. They were offered a "hand up instead of a hand out."   But as usual, that hand was quickly withdrawn as soon as the holes were cut in the safety net.  We began to hear of the "welfare queens."  Just one more way to diminish the fortune of the least among us.

It is easy to blame the conservatives for the plight of the unfortunate.  But, astoundingly, they don't deny it.

"Oh. My. God. .... We're doomed." -- Paul Krugman
http://krugman.blogs.nytimes.c...">http://krugman.blogs.nytimes.c...">http://krugman.blogs.nytimes.c...


You Really Struck A Chord (4.00 / 1)
Indeed, during the last thirty years, the less fortunate have been vilified as the truly greedy ones by the right. They were offered a "hand up instead of a hand out."   But as usual, that hand was quickly withdrawn as soon as the holes were cut in the safety net.

That phrase, a ""hand up instead of a hand out," is such a perfect embodiment of the American lie, much like "equal opportunity, not equal outcomes."  Both sound quite fair and equitable, but there's no fact-checking whatsoever to find out if they're even remotely related to the truth.

Which, of course, they are not.

"You know what they say -- those of us who fail history... doomed to repeat it in summer school." -- Buffy The Vampire Slayer, Season 6, Episode 3


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