Bill Clinton‘s 1992 presidential campaign placed welfare reform at its center, claiming that his proposal would “end welfare as we have come to know it.”
Four years later, with a Republican-dominated Congress, Clinton set about to deliver on his campaign promise, overhauling the government-funded program. In 2018, President Trump declared his intention to implement new changes to the welfare program. Take a look back at how welfare started, what happened and where it is going.
How welfare began in the United States.
In tracing the origins of modern-day welfare in America and Europe, many historians point to German chancellor Otto von Bismarck’s 1883 Health Insurance Law. As one of the first government welfare programs for the working class, it was hardly a new idea. In fact, the Roman Empire, the Song dynasty in China, and some parts of the Islamic world in the 7th century collected, and provided, forms of welfare to its people.
It was the stock market crash of 1929 and subsequent Great Depression, however, that brought the idea of welfare to the forefront of American political discourse. Although many nonprofit groups, religious organizations, and state and local governments had long run charitable efforts to help alleviate poverty, the unprecedented levels of unemployment pushed many groups beyond what they could provide. Whether it was the young showing up to school hungry, or not at all, workers struggling to make ends meet, or the elderly living without pensions, Americans were struggling to live without a safety net.
How did President Franklin Roosevelt’s New Deal get the American economy back on track, and which components still have a major impact on today’s society?
In 1935, the first form of American federal welfare as we know it was born—the New Deal.
When Roosevelt used the term “New Deal,” it was in reference to poker and the notion that some Americans had been dealt a bad hand. That, Roosevelt argued, was something the federal government could change.
It was a seismic effort from the federal government that, from its inception, ignited debate. In addition to the focus Roosevelt’s legislation had on creating more jobs, and passing the Social Security Act, his New Deal sought to expand aid to the elderly and single mother pension programs. Funded by federal tax dollars, welfare use by families ballooned far beyond the Depression era. In 1936, 162,000 families received support. By 1969, that number soared to 1,875,000.
Aid, however, was not always distributed fairly. Families of color were largely left out of, or actively block from, government policy. The wealth gap continued, with race-based discrimination becoming a political talking point during Ronald Reagan’s bid for the presidency in the 1970s. Politicians and the news media at the time profiled “welfare queens,” a stigmatizing term that described a single mother, often African American, who was allegedly manipulating the system to get more government aid, despite welfare fraud being relatively low.