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Book Summary

PART I A Generous Revolution

1 The Kennedy Transition

John Kennedy wanted to change the welfare program to help people improve their lives and support families. In the 1950s, the purpose of welfare was mostly to prevent people from starving, but many believed it could make people lazy. Programs like Social Security were designed to help those who couldn’t work, rather than just giving money based on poverty. By the late 1950s, there was growing frustration with the Aid to Families with Dependent Children (AFDC), as people felt it supported healthy adults for too long. Some blamed welfare recipients, especially among black families, for not having strong moral values. The civil rights movement highlighted the real issues, like lack of opportunities for the poor. During this time, both political parties began to focus on helping people become self-sufficient through job training instead of just providing cash assistance.

2 “The System Is to Blame”

The passage discusses significant changes in U.S. social policy from 1964 to 1967, particularly regarding poverty and civil rights. Initially, the government aimed to help individuals achieve self-sufficiency, but this shifted due to several factors including the Vietnam War, various economic influences, and failures of early antipoverty programs. A variety of social reforms, such as Medicare and Food Stamps, were rapidly implemented during this time, driven by a belief in the American economy's strength and growth potential.

As poverty re-emerged as a critical issue, the concept of "structural poverty" gained attention, highlighting that poverty was rooted in systemic issues rather than individual failures. Michael Harrington's work revealed that millions lived in poverty, challenging the superficial narrative of a universally prosperous society.

The civil rights movement also transformed as it faced different challenges in Northern cities, where racism was more hidden. Although legal barriers were lifted, social and economic inequalities persisted, reminiscent of the frustrations leading to riots in cities like Harlem. This unrest prompted white supporters of civil rights to reconsider their perspectives on racial issues, leading to a recognition of society's responsibility to address these systemic problems.

Despite the initial optimism surrounding antipoverty programs like the Job Corps, evaluations showed disappointing results. Many initiatives struggled to achieve lasting impact and often relied on individual success stories rather than broad statistical successes. As awareness grew about structural factors of poverty, it became clear that simply promoting self-sufficiency wasn't enough; ensuring a decent standard of living for all was essential for meaningful progress in combating poverty.

3 Implementing the Elite Wisdom

In the mid-1960s, there was a big change in American social policy led by a small, powerful group of thinkers instead of a wide public movement. This change was similar to the "paradigm shifts" in science, where accepted ideas were replaced suddenly.

Civil rights shifted from focusing on "equality of opportunity," where everyone had the same chances, to "equality of outcome," where everyone was ensured equal results. This led to the creation of affirmative action. The idea of jobs changed too, as people began to see that having a low-paying job didn’t mean someone was self-sufficient, which resulted in support for the working poor.

During the Johnson administration, important reforms were made in welfare, education, and social services. Although real funding for these programs started later, many changes became permanent through court decisions and federal laws, shaping national social welfare programs.

PART II Being Poor, Being Black: 1950–1980

4 Poverty

Reducing poverty was a key goal of federal social programs, particularly during the 1960s. Although there was a decrease in poverty rates from 18 percent in 1964 to 13 percent in 1968, this decline began before these reforms and did not continue into the following decade. By 1980, poverty rates rose again despite increased financial aid. Economic factors like inflation and the Vietnam War hampered progress. The growing elderly population also contributed to shifts in poverty dynamics, as more government funds were allocated to retirees. While there was some advancement for black Americans in reducing poverty during the civil rights movement, progress stalled afterward. Official poverty statistics often do not include in-kind assistance or underreported income, leading to a misleading view of poverty levels. Lastly, many individuals remained economically dependent on government aid, despite not being classified as poor, indicating a hidden layer of poverty.

5 Employment

Economic growth in the 1970s didn't greatly reduce poverty because many of the poor had no jobs. This issue was especially bad for young black males, whose job situation changed a lot during this time. At first, people thought that giving jobs to disadvantaged groups would help reduce poverty, but despite spending over $76 billion on job programs for young people, many still became poorer.

From the late 1960s onward, black youth unemployment increased, while older black workers found better job opportunities. The unemployment rates for black youths compared to white youths worsened, suggesting that something specific was affecting young black men. Labor force participation (LFP) also dropped sharply for young black males, indicating they either stayed in school or gave up looking for work. This generational problem showed that young black men born after 1950 acted differently in the job market compared to older generations. The common idea that unemployed people are lazy doesn't fit well either, as many young unemployed were just starting to look for jobs, often while still in school.

6 Wages and Occupations

During the 1960s to 1980s, many black youth faced unemployment, yet at the same time, there were significant improvements in black wages and job opportunities. More blacks moved into white-collar jobs, increasing from 14% to 39%, largely in lower-tier professional roles and government positions, although prestigious private sector jobs remained limited. Black male income improved from 61% to 75% of white male wages. Educated black professionals saw a reduced wage gap, with black males earning 86% and black females 98% of their white counterparts' wages. Black women, in particular, made notable progress in various jobs. Despite these gains, challenges like tokenism and limited advancement opportunities still existed, and education was crucial for better earnings and employment rates. Federal efforts like the 1964 Civil Rights Act aimed to reduce workplace discrimination and promote equality.

7 Education

In 1983, a report from a national education commission said that American education had worsened since the 1960s after showing improvement in the 1950s and early 1960s, especially for disadvantaged students. The federal government invested a lot of money in education between 1965 and 1980 to help low-income groups, particularly black students. From 1950 to 1980, the number of black high school students increased from 76% to 94% enrolled, almost reaching the same level as white students by 1965. College attendance for black students also climbed during the 1960s because of federal financial aid, with enrollment nearly matching white students by 1977. However, after 1977, fewer black students enrolled in colleges, even though there was still financial support available.

Despite these gains, the quality of education was a big problem. Many students struggled with basic reading and math skills, which led to a need for remedial classes in college. By 1980, there was a significant gap in educational achievement between black and white students. Standardized test scores showed that black students were performing much lower than white students, pointing to ongoing issues in education. Even with federal efforts to support disadvantaged students, many problems and inequalities persisted, especially for black students.

8 Crime

In the 1960s, many young people struggled to find steady jobs, leading to increased involvement in crime as a means of survival, especially among urban black communities. Crime rates, which had been stable or declining in the 1950s, began to rise sharply around 1964. This increase included both property and violent crimes. The majority of offenders were young males, with a notable rise in arrests among these groups, particularly black individuals. Although homicide rates for black males initially decreased, they grew more dangerous over time as urban conditions worsened. Poor black victims faced significantly higher crime rates compared to middle-income whites. In response to rising crime, federal efforts increased, leading to the establishment of the Law Enforcement Assistance Administration in 1968 to aid local law enforcement and address crime's root causes through social programs.

9 The Family

John Kennedy emphasized the importance of family integrity in his call for welfare reform, as concerns grew that welfare policies were damaging the families of the poor. The trends for impoverished black families have generally been troubling, but data allows for comparisons between poor and non-poor families as well as between black and white families. Measures like illegitimate births and the rise of single-female-headed households highlight significant family changes from 1950 to 1980. Although the rate of illegitimate births to unmarried women increased, it remained lower for black women overall. Furthermore, single female household structures have notably increased, with economic factors greatly influencing this trend. Despite rising social spending aimed at helping families, poverty levels, particularly for those led by single mothers, have worsened during this period.

10 The View from 1966

In the 1960s, the situation for poor and disadvantaged groups, especially Black Americans, got worse despite new civil rights laws and social programs. Analysts in 1966 looked at what might happen to Black Americans by 1980, considering both positive and negative outcomes. They focused on issues like crime and family structure for the poorest Black Americans and examined job opportunities and education for those doing better. By 1980, the poorest Black Americans faced serious problems, while middle-class Black Americans improved, showing how different outcomes can be for these groups.

PART III Interpreting the Data

11 The Social Scientists and the Great Experiment

Social scientists in the 1960s used new technology to address social issues during the War on Poverty, despite facing challenges with complex data analysis. They initiated the Negative Income Tax (NIT) experiment in 1968 to determine if providing a guaranteed income could reduce poverty without discouraging work. About 8,700 participants were divided into groups receiving NIT payments and those not receiving them. The results indicated that work effort declined among recipients, with men working about 9% less and women around 20% less. The study also revealed increased family instability among those receiving payments, showing that the NIT did not achieve its intended goals.

12 Incentives to Fail I: Maximizing Short-Term Gains

Changes in social policies during the 1960s significantly impacted people's decisions, especially for those facing poverty. New incentives led to different consequences, such as higher youth unemployment and increased reliance on welfare. People tend to make choices that maximize their benefits, but those with fewer resources might opt for immediate solutions, which may seem irrational to wealthier individuals. For example, a poor farmer might stick with a less profitable crop due to the high risk of starvation.

The story of a young couple, Harold and Phyllis, illustrates the difficult choices they face in 1960 and 1970. In 1960, they have limited options and little financial support. By 1970, welfare programs provide better financial support for Phyllis, making her choices clearer. She can receive more money through welfare than Harold could earn at a low-paying job. The changes in welfare rules and benefits influenced their decision-making, leading them to prioritize financial stability over traditional expectations like marriage. These adjustments highlight how individuals adapt to their economic environment, ultimately showing that their choices are driven by the new realities they encounter.

13 Incentives to Fail II: Crime and Education

The discussion examines how changes in incentives from the 1960s impacted crime and education, particularly for young poor individuals. In terms of crime, decreased risks of being caught or punished led to higher crime rates. The likelihood of imprisonment fell, which made crime appear less risky, especially for disadvantaged individuals. Legal protections that once favored the wealthy began to extend to the poor, allowing for an increase in criminal behavior without significant consequences. Juvenile crime also saw changes, with fewer punishments leading young offenders to think they could evade long-term impacts.

In education, students, especially from struggling backgrounds, faced a shift in incentives, making it harder to motivate learning. As discipline in schools decreased, classroom order was disrupted, and students felt freer to ignore their education. These factors created an environment that did not value education, worsening academic results. The various changes in incentives for work, crime, and education converged to create traps that hindered long-term success and perpetuated cycles of poverty for many individuals.

14 The Destruction of Status Rewards

Status and money play an important role in how people behave in society. Many people chase money mainly to gain status. Status motivates ambition, pushing people to work hard in difficult jobs, and it gives a sense of fulfillment by recognizing good behavior, regardless of wealth. In the U.S., there is hope for upward mobility, but changes in social policies in the 1960s affected low-income families, especially in black communities, leading to a loss of status for working families and undermining efforts to escape poverty.

In America’s history, many lived in poverty, but not everyone saw their lives defined by it. Different groups experienced poverty in various ways. Initially, many believed that poor people were responsible for their situation, but starting in the 1950s, more people blamed the system for ongoing poverty. This change hid the differences between the “deserving” and “undeserving” poor, causing the poor to be viewed as a single group of victims.

Welfare policies were updated to remove the negative view of receiving assistance, suggesting that welfare is a right. Organizations like the National Welfare Rights Organization fought for equal support for all on welfare, regardless of their efforts to improve their situations. However, this sometimes ignored personal abilities and led to challenges in education.

Welfare programs also changed how people viewed work, making it more acceptable to be unemployed, especially for younger people. Status and personal responsibility are important for escaping poverty. In low-income, especially black neighborhoods, a lack of support makes it harder for individuals to believe they can succeed, leading to feelings of hopelessness and creating barriers to upward mobility.

PART IV Rethinking Social Policy

15 What Do We Want to Accomplish?

The legitimacy of changing social institutions to achieve greater equality is often taken for granted but rarely deeply analyzed. The need for welfare, Food Stamps, and scholarships for the poor is questioned, with many justifications being vague responses rather than solid arguments. Fairness and morality are central to discussions about why resources should be transferred from those with more to those in need. For instance, a laid-off worker deserves unemployment benefits, while a healthy person who refuses to work raises concerns about fairness in distribution.

Social policies frequently transfer benefits from one poor individual to another instead of from rich to poor, often harming those who work hard while benefiting those who don't contribute. This creates moral dilemmas, as students from different backgrounds face unequal educational opportunities.

While government transfers like Food Stamps aim to help, their fairness and effectiveness in improving happiness are difficult to assess. It’s crucial to design social policies that genuinely assist those in need without causing additional harm.

16 The Constraints on Helping

Compulsory transfers from one person to another can be problematic due to the difficulties in determining who needs help the most. The effectiveness of transfer programs often depends on specific conditions that ensure they do more good than harm. A government program aimed at reducing smoking through financial rewards illustrated several challenges. The program, which planned to spend a billion dollars each year to reward people for quitting, faced issues with participation and motivation. While some heavy smokers quit, others manipulated the system by increasing their smoking to meet eligibility criteria. This led to more smokers and greater overall cigarette consumption.

Three laws that impact social programs can significantly limit their effectiveness. The Law of Imperfect Selection states that eligibility criteria may leave out those who genuinely need help, as defining "true need" is complicated. The Law of Unintended Rewards suggests that assistance can sometimes encourage people to remain in disadvantaged situations. For instance, unemployment benefits may create a comfort zone that discourages job seeking. Lastly, the Law of Net Harm explains that if participants are not willing to change their behaviors, programs meant to induce change might produce disappointing results. In summary, social programs face inherent challenges that can hinder their ability to help, necessitating careful design and consideration to motivate positive change effectively.

17 Choosing a Future

National programs aimed at assisting the poor often have limitations and can unintentionally harm those they intend to help. Although helping the poor is a moral duty, past reforms have often failed to address the needs of the least responsible while negatively impacting the hardworking poor. It is necessary to change public views to focus more on education and welfare that promote academic achievement and middle-class values. To create a better future, the current dysfunctional rules must be reformed.

Reforming social policy in America is complicated due to ongoing racial issues. There is a conflict between the ideas of equal treatment (everyone following the same rules) and giving everyone a fair chance to succeed. After the 1960s, social policy shifted to aid black individuals to catch up, leading to a new form of racism that created condescension and differing treatment based on race. The proposal is to eliminate any laws or policies that treat people differently based on race, promoting true equality.

In education, every child deserves access to a quality education. The goal is to provide free education from preschool to graduate school while ensuring quality. A voucher system is proposed, allowing parents to choose where to send their children to school, which can lead to better educational opportunities and equal test scores across racial backgrounds. Schools should create supportive environments for children who come underprepared and teach them resilience and the value of effort.

For public welfare, a new proposal suggests dismantling the federal welfare system for working-age people. This approach encourages independence and personal responsibility while promoting local support services. It aims to improve social status and respect for hard-working families, allowing individuals to thrive through effort instead of reliance on government aid.

Ultimately, social policy should create opportunities based on merit, allowing individuals to succeed without guaranteeing equal outcomes. Significant reforms are challenging, as people often prefer maintaining the current system over facing the difficult realities of change, even if it leads to increased suffering for some.