and training, misfortune, small or no inheritances, and discrimination. (Sharp, Register, and Grimes 206) Because of the many factors involved there is no one simple answer to what is the actual cause of poverty. Moreover, many would argue about just how much income is needed for the essentials of daily living. The debate goes on. Does the Benefit of Welfare Assistance Outweigh the Cost? Now that there is a general understanding of the establishment of social welfare programs, the next question to answer should be does the benefit of welfare assistance outweigh the cost? Beginning with the introduction of the Temporary Aid to Needy Families program, the United States has been at a turning point with social welfare programs. For example, during 1980 the expenditures for the old welfare program, AFDC, was $5.4 billion while the Earned Income Tax Credit (EITC, also a social welfare program), was $2.0 billion. The annual cost of the EITC grew from $2 billion to $12 billion between 1986 and 1992. By 1996, annual outlays reached $25 billion, almost double the level of federal expenditures on AFDC. While part of this growth is due to a rising demand, the main reasons for expansion have been sizable benefit increases and extensions of eligibility introduced in 1986, 1990, and 1993. (Myles, and Pierson 6) Table 2 Federal Spending on EITC and AFDC, 1980-1996 ($ In billions) EITC (first) AFDC (second) 1980: 2.0, 5.4 - 1981: 1.9, 6.9-1982: 1.8, 6.9-1983: 1.8, 7.3-1984: 1.6, 7.7-1985: 2.1, 7.8-1986: 2.0, 8.2-1987: 3.9, 8.9-1988: 5.9, 9.1-1989: 6.6, 9.4-1990: 6.9, 10.1-1991: 10.6, 11.2-1992: 12.4, 12.3-1993: 13.2, 12.3-1994: 19.6, 12.4-1995: 22.8, 12.8-1996: 25.1, 13.2 Source: United States House of Representatives, Committee on Ways and Means, Where Your Money Goes: The 1994-95 Green Book (Washington, DC: Brassey's, 1994), 389, 700. Note: AFDC expenditures exclude state-level spending and Administrative costs. Although the EITC expendit...
