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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Welfare Reform

Taxing hard-up Americans at 95%, September 7, 2013, The Economist: “After her son was born in 2008, Melissa Devilma—homeless, jobless and alone—needed help. The welfare system stepped in: she received $478 in cash and $367 in food stamps each month, along with housing assistance that lowered the rent on her two-bedroom apartment in Boston to $131. Including health care, taxpayers subsidised her to the tune of $33,000 annually. Ms Devilma used the money to go to college and earn a bachelor’s degree. She wants to get off the dole. But she says that many of the other welfare recipients she knows are reluctant to seek work or an education. Life in the system is hardly gold-plated, but it is comfortable enough. Even Ms Devilma admits that, if it were not for her son and the recent expiry of her cash aid, she would rather live on welfare than take an entry-level job at McDonald’s, which she considers unsuited to her level of education. As it is, she would take any job “just so I have that little money to provide for him”…”