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Welfare in Canada is NOT the same as in the United States.
Here's why.A Comparison of Canadian and American Welfare Reforms and
their Effects on Poverty After 1990 (PDF - 10.7MB, 9 pages)
March 2009
By Fern Karsh
Department of Economics, University of Western Ontario---
By Gilles:
This undergrad paper that I found in a Google search result is a large download, but welfare historians will find it an interesting read. It offers a brief history of the funding mechanism for federal contributions to provincial-territorial welfare programs from the (1966) Canada Assistance Plan to the 1990 "cap on CAP" to the 1996 Canada Health and Social Transfer (CHST). It also contains a section on welfare reforms in Ontario starting in the mid-1990s with the Mike Harris Tories. There's a section on welfare reform in the U.S during the same period, and a conclusion that the U.S. had "greater success (than Canada) in reducing welfare rolls, unemployment and poverty."
Not so fast.
You can't compare American and Canadian welfare systems, nor the relative success of welfare reforms in both countries, without the necessary context. Tempting as it may be to assume that Temporary Assistance to Needy Families in the U.S. and the Canada Social Transfer are pretty much the same thing - a mechanism to stream federal funding to the lower order of government - it would be incorrect to do so, for a host of reasons. Below, I'll address mainly the caseload composition of both TANF and Canadian welfare programs.
Unlike the Canadian welfare system, state welfare programs under the federal Temporary Assistance to Needy Families (TANF)* initiative normally grant welfare ONLY to households with children, often headed by single mothers. They exclude all non-disabled single people and childless couples, who must apply instead to the national Food Stamp program and to residual aid programs where they live (if there are any such programs, which is not always the case). In Canada, singles and childless couples make up close to 60% of the total welfare caseload.
Moreover, state welfare programs receiving TANF funding exclude households headed by someone with a disability. In the U.S., people with disabilities must apply for assistance from the federal Social Security Disability program [ ]. In Canada, we have the contribution-based Canada Pension Plan Disability Benefit [ ], but provincial-territorial welfare programs also provide needs-tested assistance to people with disabilities - who currently make up about 35-40% of the national welfare caseload.
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* TANF is the federal transfer for state welfare programs, the U.S. equivalent to the Canada Social Transfer, which replaced the CHST in 2004. However, there are important differences between the two funding mechanisms in addition to the target population as noted above. For one thing, the federal government in the U.S. imposes a number of conditions on state welfare programs under TANF (e.g., targets for work participation and child poverty), while the Harper Government™ imposes only a non-residency rule on provincial welfare programs (i.e., eligibility for provincial welfare cannot be based on residency in a particular province). Also, welfare under TANF is only *one* of several programs in the U.S. that must be taken into account when comparing U.S. "welfare" with the Canadian system.
---In Canada, welfare covers food, shelter, clothing, personal and household needs; in addition to health care coverage, which is universal in Canada, each Canadian jurisdiction offers a range of assistance for special medical needs under its welfare program. In order to compare Canadian and American welfare, the following American programs *must* be included:
* TANF welfare
* Medicaid
* SNAP (Supplemental Nutrition Assistance Program, formerly known as food stamps)
* Housing vouchers
* Supplemental Security Income (SSI)
* School lunch and breakfast programs
* Earned Income Tax CreditIn the U.S. when a person or family times out of TANF welfare (between two and five years, depending on the state), they can still apply for some aid from the above programs and other state programs of last resort. If "timing out" were possible in Canada, individuals and families would have no other recourse. But there's no time limit on welfare in Canada ---- you can continue to receive welfare as long as you can prove financial need and you meet other eligibility requirements. The Government of British Columbia actually imposed a time limit in 2002 that was similar to what many U.S. states had adopted - two years eligibility for welfare out of five.
For more info about this draconian Canadian (BC) welfare time limit policy and how it bombed, see: http://www.canadiansocialresearch.net/bc_welfare_time_limits.htm
---
For more information about TANF, see:
For more information about Canadian welfare programs under the Canada Social Transfer, see:
http://www.canadiansocialresearch.net/cap.htmFor more information about welfare and welfare reforms in Canada, see:
http://www.canadiansocialresearch.net/welref.htmThe Bottom Line:
Canadian and American welfare systems are like apples and oranges.
They shouldn't be compared without situating each system in its appropriate context.
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MORE reasons why you shouldn't compare Canadian and American welfare out of context |
Welfare in Canada
In Canada, social assistance or welfare is available on the
basis of financial need.
[ - from Human Resources and Skills Development
Canada]
[ How welfare works in Ontario - Canada's largest
province]
[ Welfare information for each province and territory
]
[ The Constitutional federal role in Canadian
welfare ]
---
Welfare in the United States:
From Wikipedia:
The United States welfare state refers to those institutions, supported or
managed by the U.S. government, that aim to ensure economic security, universal
access to the resources for self-development and the reduction of social suffering,
such as poverty and illness
An historical perspective and a brief overview of welfare systems in a half-dozen
countries, including Canada and the U.S.
***********************
Welfare services in the United States have traditionally been more limited than those in European nations. As one author writes, "compared with most other rich capitalist societies, the American welfare state is more market-conforming."
Welfare assistance of various kinds is provided in the United States partly by the federal government and partly by state governments. Federal welfare and public assistance spending is provided by federal government agencies, such as the US Department of Housing and Urban Development and the US Department of Health and Human Services, through special programs to recipients.
In the United States, personal welfare is normally given to households with children, often headed by single mothers. Since the landmark federal welfare reform act in 1996 (the Personal Responsibility and Work Opportunity Reconciliation Act), individual recipients are limited to a lifetime maximum of five years cumulative for receiving federal welfare of all types. Before 1997, United States personal welfare for households with children was first named Aid to Dependent Children, which was later called Aid to Families with Dependent Children (AFDC). It was administered by the United States Department of Health and Human Services. In 1996-97 as part of welfare reform, AFDC was replaced by Temporary Assistance for Needy Families (TANF), which included more limits on the amount of time an individual or family can receive welfare. Since 1996, the Earned Income Tax Credit (EITC) has largely replaced AFDC as the primary anti-poverty program in the United States.
While not termed "welfare" in the USA, there are a variety of other personal transfer payments which are financial assistance programs; examples of such transfer payments are unemployment compensation (which, unlike welfare, is not means-tested and is prepaid by employers before job loss) and tobacco taxes, part of which are disbursed for hospital care for the needy (as well as the general public).
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With regard to personal welfare for individuals without children, most U.S. states had been providing welfare or assistance benefits to single adults and childless married couples since the Great Depression, but the number of states doing so declined steeply during the 1990s, and many of the states that still provide such benefits use methods other than cash payments to render the assistance. For example, many California counties currently provide only vouchers. At present, only a few states — New Jersey, Utah and Minnesota among them — still provide cash benefits to poverty-stricken adults who do not have child dependents. These programs were often known officially by such names as Home Relief, General Assistance, or General Relief.
Welfare is financial assistance paid to people by governments. Some welfare is general, while specific and can only be invoked under certain circumstances, such as a scholarship. Welfare payments can be made to individuals or to companies or entities--these latter payments are often considered corporate welfare.
Individuals may apply for welfare due to disability, lack of education or job training, a low demand for unskilled labor, or substance abuse. Assistance may also take the form of other relief, such as tax credits for working mothers.
Welfare is known by a variety of names in different countries, all with the avowed purpose of providing an economic or social safety net for disadvantaged members of society. Almost all developed nations provide some kind of safety net of this kind; nations where such programs are especially prominent are known as welfare states.
The desired outcome and purpose of welfare varies. For welfare for the non-disabled, the purpose often is to prevent complete destitution. Welfare or assistance for the disabled, in contrast, does not eventually expect non-dependency, and the justification is more philosophical.
"Corporate welfare," usually in the form of favorable tax policy, is sometimes used in order to provide capital to an industry that the government perceives needs financial assistance in order to survive or to expand, or which the government wishes to support for political or economic purposes.
Some of these ideal outcomes and purposes, as well as welfare's effectiveness have been challenged by political lobbies such as those who oppose big government and "forced charity", such as minarchists or libertarians.
The amounts paid to recipients are typically modest, and may fall below the poverty line. Recipients must usually demonstrate a low level of income such as by way of "means testing", or financial hardship, or that they satisfy some other requirement such as childcare responsibilities or disability.
Those receiving unemployment benefits may also have to regularly demonstrate that they are periodically searching for employment. Some countries assign specific jobs to recipients who must work in these roles in order for welfare payments to continue. In the United States and Canada, such programs are known as workfare.
---------------------------
"Eligibility for TANF assistance is
limited to pregnant women and families with children."
Source:
---------------------------
A Comparison of Canadian and American
Welfare Reforms and
their Effects on Poverty After 1990 (PDF -
10.7MB, 9 pages)
March 2009
By Fern Karsh
Department of Economics, University of Western Ontario
---
This undergrad paper that I found in a Google search result is a large download,
but welfare historians will find it an interesting read. It offers a brief
history of the funding mechanism for federal contributions to provincial-territorial
welfare programs from the (1966) Canada Assistance Plan to the 1990 "cap
on CAP" to the 2006 Canada Health and Social Transfer. It also contains
a section on welfare reforms in Ontario starting in the mid-1990s with the
Mike Harris Tories. There's a section on welfare reform in the U.S during
the same period, and a conclusion that the U.S. had "greater success
(than Canada) in reducing welfare rolls, unemployment and poverty."
Not so fast.
Unlike the Canadian welfare system, state welfare
programs under the federal Temporary Assistance to Needy Families (TANF)*
initiative normally grant welfare ONLY to households with children, often
headed by single mothers. They exclude all non-disabled single people and
childless couples, who must apply to the national Food Stamp program and to
residual aid programs where they live (if there are any such programs, which
is not always the case), as well as people with disabilities (who must apply
under the separate federal Social Security Disability programAmerican Social
Security program). In Canada, singles and childless couples make up close
to 60% of the total welfare caseload and households headed by people with
disabilities account for about a third of the total caseload.
---
* TANF is the federal transfer for state
welfare programs, the U.S. equivalent to the Canada Social Transfer, which
replaced the CHST in 2004.
---
In the U.S., people with disabilities must apply for
assistance from the federal Social Security Disability program.
In Canada, we have the contribution-based Canada Pension Plan Disability Benefit:
... but provincial-territorial welfare programs also provide needs-tested
assistance to people with disabilities - who currently make up about 35-40%
of the national welfare caseload. The "with children" part of the
expression refers to the fact that in the U.S., there is not one able-bodied
single childless adult in receipt of state assistance under TANF. In Canada,
childless single people account for around 50% of the total welfare caseload
across the country --- but many of those singles are people with disabilities.
There are other aspects of the two countries' programs of last resort that
differ from one another. If you want more information on the two systems,
this TANF report and the links below to related info will give you more detailed
info on the American welfare system; for Canadian welfare info, try the Canadian
Social Research Links Welfare and Welfare Reforms in Canada page ( http://www.canadiansocialresearch.net/welref.htm
) as a starting point - or Social Assistance in Canada, 1994
( ) - an oldie goldie
look at welfare in Canada in 1994 that offers some insights into how welfare
works today in Canada.
Bottom Line:
Canadian and American welfare systems are like apples and oranges.
They shouldn't be compared without situating each system in its appropriate
context.
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---------------------------
(PDF file -
296K, 50 pages)
Revision of a paper prepared for the Economic Council of Sweden conference,
“From Welfare to
Work,” Stockholm, May 7, 2007.
Discussion Paper no.1334-08
By Robert Moffitt
February 2008
Abstract
The reform of the cash-based welfare program for single mothers in the U.S.
which occurred in the 1990s was the most important since its inception in
1935. The reforms imposed credible and enforceable work requirements into
the program for the first time, as well as establishing time limits on lifetime
receipt. Research on the effects of the reform have shown it to have reduced
the program caseload and governmental expenditures on the program. In addition,
the reform has had generally positive average effects on employment, earnings,
and income, and generally negative effects on poverty rates, although the
gains are not evenly distributed across groups. A fraction of the affected
group appears to have been made worse off by the reform.
Source:
(University of Wisconsin)
A caveat for those who would compare Canadian and American welfare systems:
"(...)Finally, another overarching issue in the U.S. is the relative lack of programs and services made available to unskilled prime age males, both married and unmarried. Most transfer programs exclude them, with the exception of the EITC for those with dependents, and Food Stamps is a major exception that provides universal support." (Excerpt from Welfare Reform, p.41)
In Canada, "prime age males" may apply for welfare like any other person in need.
---------------------------
US public assistance programs have always
been different. Even compared to Canada — which also has a federalist
system with strong provincial control of social assistance programs —
US benefits are lower, they are less universalistic, and social insurance
programs are less generous. In addition, the US economy has been markedly
stronger than most other economies in this past decade, with higher job growth
and greater declines in unemployment. Hence, it may be dangerous to try and
draw strong cross-national conclusions based on US experiences.
Source:
What Can Other Countries Learn about Fighting Poverty from US Welfare
Reform? (PDF file - 127K, 24 pages)[dead link]
2000
Rebecca M. Blank
---------------------------
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From (U.S. News portal):
February 26, 2007
By STEPHEN OHLEMACHER
WASHINGTON (AP) - The welfare state is bigger than ever despite a decade of
policies designed to wean poor people from public aid. The number of families
receiving cash benefits from welfare has plummeted since the government imposed
time limits on the payments a decade ago. But other programs for the poor,
including Medicaid, food stamps and disability benefits, are bursting with
new enrollees. (...) Critics of the welfare overhaul say the numbers offer
fresh evidence that few former recipients have become self-sufficient, even
though millions have moved from welfare to work. They say the vast majority
have been forced into low-paying jobs without benefits and few opportunities
to advance. (...) In 2005, about 5.1 million people received monthly welfare
payments from TANF and similar state programs, a 60 percent drop from a decade
before. But other government programs grew, offsetting the declines. About
44 million people - nearly one in six in the country - relied on government
services for the poor in 2003, according to the most recent statistics compiled
by the Census Bureau. That compares with about 39 million in 1996. Also, the
number of people getting government aid continues to increase, according to
more recent enrollment figures from individual programs. Medicaid rolls alone
topped 45 million people in 2005, pushed up in part by rising health care
costs and fewer employers offering benefits. Nearly 26 million people a month
received food stamps that year. Cash welfare recipients, by comparison, peaked
at 14.2 million people in 1994.
Related links:
- brief
summary of TANF
(December 2006) - data about welfare
caseloads, family employment and earnings, marriage and two-parent families,
out-of-wedlock births, and State policy choices
TANF statute:
TANF final regulations:
Temporary Assistance for Needy Families Program (TANF); Final Rule
[dead link]
Policy Q's and A's [dead link]
Policy documents [dead
link]
- incl. policy announcements, program instructions and information memoranda
Medicaid [dead link]Food stamp program [dead link]Supplemental Security Income
[dead link]
- Go to the Links to American Non-Governmental Social
Research (M-Z) Links page:
http://www.canadiansocialresearch.net/us3.htm
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