South Carolina More Affordable Getting a Job or Staying on Welfare

Getting a Job or Staying on Welfare-Which one is More Affordable in South Carolina?
Introduction
Republicans and Democrats do not quite agree on a lot of things, but one of the points that they agree on is that welfare does not work. Democrats are worried that welfare reaches only a few families that need it, whereas the Republicans are concerned that the benefits of welfare create dependence. The truth is that both of them are right.
The main financial aid program in America, Temporary Assistance to Needy Families, helped 86 percent of the low-income households back in 1996. Currently, only 23 percent of needy families get help (Hamilton). For the recipients of welfare, the road to self-dependence entails securing employment. In the last four years, several states have tried out work requirements and incentives for the recipients of welfare, under federal government waivers. This paper argues that an individual should concentrate on getting employed instead of staying on welfare. This argument will proceed by making points for both sides and then coming to a conclusion.
Background: Welfare in South Carolina
South Carolina consumed approximately 163 million dollars in state and federal funds in 2017 under TANF (Temporary Assistance for Needy Families) program. It used 38% of these moneys on essential activities that include child care, basic help, and supports and work activities. In the same year, South Carolina was also ranked at position 36 amid states as well as the District of Colombia for percentage of TANF moneys used on essential activities (“South Carolina TANF Spending”).
There is a continuous drop in the figure of South Carolina residents receiving public aid. 22,548 South Carolinians got TANF benefits in August 2017, which is the least since prior to 2007. The figure of TANF beneficiaries climaxed in October 2010 to 53,438. Ever since that time, there has been a 58% drop in the caseload. About 79% of TANF beneficiaries are kids below 18 years of age. South Carolina’s TANF program income threshold is roughly 50% of the FPL (federal poverty level) (“TANF”). The average TANF grant awarded to beneficiaries per month is $207 in South Carolina (“TANF”).
From the above statistics, it is necessary to investigate the reasons as to why the residents of South Carolina ought to consider getting employed instead of depending on welfare.
Argument for getting a job
It is worth securing a job instead of remaining on welfare given that there are certain flaws in the welfare system that the benefits decrease as the receiver’s earnings increases. As a family’s wages gets closer to the poverty line and even surpasses it, households on some welfare programs could actually face real marginal taxes of about 50% or 60% (Dorfman). This implies that the tax combination payable on new wages as well as lost benefits as a result of the increasing wages causes the household to lose about 50 – 60% of the initial earnings gain back to the federal government.
The most obvious benefit of securing employment is the cash that is associated with it. This may seem obvious, but do not underrate the having a steady income flow. Weekly wages do not just cater for rate and other expenditures today; they are in fact the best way of ensuring that you are covered for tomorrow. Just in case you are not able to get work, the state provides you with some money for meeting your basic needs via payments for jobseekers (SpunOut). These payments are, however, low in comparison to what you would have made from a job. This is particularly true for the young individuals, given that you receive a much lower welfare rate if you are below 26 years of age. In case you are offered employment but are not quite sure if the salary is better than what you receive from welfare, you could make use of the Benefit of Work ready reckoner (MaNamara). It works by calculating for you in-work benefits and taxes and then compares the salary you would be actually getting when employed to what you receive in payment for jobseekers. Provide that your potential job is offering you at least the minimum wage, then you should benefit from taking that job.
Securing employment is a better option. Provided that the working conditions are fair and that the environment is safe, employment benefits both your physical and mental health. Being employed lifts your self-esteem through giving you a daily purpose (Moffitt). It also provides you with a direct and clear way of contributing to a greater cause other than yourself. It is a lot easier to be a happier and self-fulfilled individual if you have a purpose (MaNamara; SpunOut). In addition, employment is good for your mental health in the sense that it provides you with the opportunity of meeting new individuals and helps you plan your time. Employment also reduces the chances of you falling into debts or stresses of meeting your needs, both of which could have serious health implications. Employed individuals are also less probable of getting depressed, developing dangerous addictions, or dying at a younger age.
Securing employment helps in creating focus and is a source of great security. You might not really know what you wish to achieve with your life, but you most likely have an idea of the kind of place you would like to stay, the things you enjoy doing, and so much more. Having a job makes it easy to plan for the future on your own terms (Moffitt). A reliable and steady income provides you with the security needed to stop stressing about what is happening at present and instead begin concentrating on the future. Even though not all jobs are secure and permanent, every single job you secure should make it easier to secure the next. Creating an employment history builds a nice C.V. that in turn allows you to secure a better and more paying job (MaNamara; SpunOut). Consider each job as a stepping stone to a better job in the near future.
Argument to remain on welfare
With the rates of unemployment dismal both on the state and national levels (8.1% in South Carolina), one may think that any individual presently without employment would do whatever it takes to secure a job. Residents of South Carolina could in fact receive more cash depending on welfare programs compared to being employed in entry-level jobs (“More “Incentive” for Welfare…). As stated in research, if every available benefit is summed up for an ordinary welfare household made up of a single mother with her two kids, the total benefits grant sums up to 26,536 dollars, or 21,910 dollars after taxes. The various programs involved in this particular calculation are SNAP (food stamps), TANF, WIC, Medicaid, Housing, emergency food assistance (TEFAP), and low income energy assistance (LIHEAP).
Welfare grants are not taxed whereas the wages are. Therefore a welfare beneficiary receiving SNAP (food stamps), TANF, housing aid, Medicaid, LIHEAP (energy aid), as well as free commodities will have to get pretax earnings in case they got employed and left welfare. Computing state income tax, federal income tax, together with the FICA payroll taxes, an individual will have to pay taxes on earned salary. In addition, looking at both state and federal versions of the EITC (Earned Income Tax Credit) and child tax credits (they helped to raise the value of the job but did not completely balance the taxes owed), displays that in order to get by, an individual on welfare often has to get a job that paid significantly more than what they received from welfare (Tanner).
Most welfare beneficiaries, specifically long-term individuals, do not have the expertise and attachment required in the job market to secure the well-paying jobs. Persons who leave behind welfare for employment often begin with jobs in the retail or service sector, in positions like secretaries, clerks, salesperson, waitresses, and cleaners (Tanner). Even though it could be good to increase the earnings of the entry-level employees, the government does not have the capacity to do that. Attempts to force increase in wages such as the increase in minimum wage, mainly lead to fewer jobs.
Counter-argument to welfare support arguments
First and foremost, welfare can be described as the classic tale of giving an individual fish and not teaching them how to actually fish. The issue is not the lack or shortage of programs of job training, but instead the fact that such programs fail to assist individuals. According to a research for ProPublica, individuals that lost their former jobs and took part in federal training programs were less probable of getting employed later on compared to those that lost their initial jobs and did not get any training (ProPublica). The job training programs made individuals worse off rather than improving them. If we wish to remove people from welfare, we should figure out better ways of improving their employability, expertise, as well as earning potential. Presently, the government is not capable of teaching anyone how to find fish, let alone catching one.
Conclusion
Low-income households in South Carolina, whether the family has a single or both parents, might be eligible for welfare services. Households registered in the program are provided job training and placement, childcare together with transport while in job training, and s stipend payable monthly, all intended to help the parents get employed and maintain self-dependence. Every household is allocated a caseworker, who offers valuations to gauge if more services or screenings are needed, and works with the household to come up with a plan that ensures financial stability of the family within two years. Most American citizens consider it just and fair for the government to offer a social safety net to those individuals who find themselves facing financial struggles. Nonetheless, most individuals are not in support of a safety net that traps its beneficiaries in the system, prevents them from becoming self-dependent, and makes them more and more financially weak.


Works cited
“More “Incentive” for Welfare or Work in S.C.?” South Carolina Policy Council, 2013, August 21. Accessed 19 April 2019 https://scpolicycouncil.org/commentary/welfareorwork
“South Carolina TANF Spending.” Center on Budget and Policy Priorities. Accessed 19 April 2019 https://www.cbpp.org/sites/default/files/atoms/files/tanf_spending_sc.pdf
“TANF,” South Carolina Department of Social Services. Accessed 19 April 2019 https://dss.sc.gov/assistance-programs/tanf/
Dorfman, Jeffrey. “Welfare Offers Short-Term Help And Long-Term Poverty, Thanks To Asset Tests.” Forbes. 2016, Oct. 13. Accessed on 19 April 2019. https://www.forbes.com/sites/jeffreydorfman/2016/10/13/welfare-offers-short-term-help-and-long-term-poverty/#21b4bf5232cd
Hamilton, Leah. “Opinion: Why Welfare Doesn’t Work: And What We Should Do Instead.” Basic Income Earth Network, 2018, Jan 29. Accessed 19 April 2019. https://basicincome.org/news/2018/06/why-welfare-doesnt-work-and-what-we-should-do-instead/.
MaNamara, Carter. “Employee Benefits and Compensation (Employee Pay).” Free Management Library. Accessed 19 April 2019. https://managementhelp.org/payandbenefits/index.htm
Moffitt, A. Robert. “From Welfare to Work: What the Evidence Shows.” Brookings. The Brookings Institution. 2002, Jan. 2. Accessed 19 April 2019 https://www.brookings.edu/research/from-welfare-to-work-what-the-evidence-shows/.
ProPublica. “Rare Agreement: Obama, Romney, Ryan All Endorse Retraining for Jobless—But Are They Right?” ProPublica Inc. 2012, Oct. 10. Accessed 19 April 2019 https://www.propublica.org/article/rare-agreement-obama-romney-ryan-endorse-retraining-for-jobless-but-are-the
SpunOut. “What are the benefits of being in employment?” Spunout. 2016, Nov. 28. Accessed 19 April 2019. https://spunout.ie/employment/article/benefits-of-being-in-employment
Tanner, Michael. “Welfare: A Better Deal than Work.” National Review. 2013, Aug. 21. Accessed 19 April 2019. https://www.nationalreview.com/2013/08/welfare-better-deal-work-michael-tanner/