Family Cap
Encyclopedia
Family Cap is a practice to deny mothers and families who receive welfare
Welfare
Welfare refers to a broad discourse which may hold certain implications regarding the provision of a minimal level of wellbeing and social support for all citizens without the stigma of charity. This is termed "social solidarity"...

 assistance further financial assistance after the birth of another child.

This is practiced in some states of the USA and in some Asian countries such as South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

 and Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...

.

United States

Traditionally, each family member is entitled to an allotment of welfare benefits. Therefore, if a family had a child while receiving welfare assistance the grant amount would increase moderately. However, this changed in 1992 with New Jersey being the first state to implement a “family cap” policy. Currently, about 23 states have implemented some type of a “family cap” or “child exclusion” policy.

Federal Government

Under the current 1996 federal welfare law block grant, Temporary Assistance for Needy Families (TANF), states have discretion to implement a family cap policy. Prior to TANF, under the federal Aid to Families with Dependent Children (AFDC) states had to obtain waivers before imposing family cap policies.

State Information

Repealed Family Cap Currently Adopt Family Cap
Illinois Arizona
Maryland Arkansas
Wyoming California
Connecticut
Florida
Georgia
Indiana
Maryland
Massachusetts
Minnesota
Mississippi
New Jersey
North Dakota
Oklahoma
North Carolina
South Carolina
Tennessee
Virginia
Wisconsin
Delaware

Criticisms of the Family Cap

Child poverty rates of different ethnic groups in the U.S.
Year Total African-Americans Hispanics
1996 20.5% 39.9% 40.3%
2001 16.3% 30.2% 28.0%
http://www.acf.hhs.gov/programs/ofa/annualreport5/chap09.htm


Family Caps are highly controversial. Critics argue that the policy negatively affects children’s poverty levels and health and also increases abortion rates.

Abortion

There are conflicting studies on the abortion
Abortion
Abortion is defined as the termination of pregnancy by the removal or expulsion from the uterus of a fetus or embryo prior to viability. An abortion can occur spontaneously, in which case it is usually called a miscarriage, or it can be purposely induced...

 issue. A 1998 study conducted in New Jersey found that for new welfare recipients there was an increase of 14% in the abortion rate, but for ongoing cases of recipients there was no significant difference in abortion rates cause by the family cap policy. Between October 1992 and December 1996, the New Jersey family cap averted 14,000 births and caused 1,400 abortions that otherwise would not have occurred. For this reason, family caps are criticised by the New Jersey Catholic Conference, Pro-life organizations, the American Civil Liberties Union, and the National Organization for Women. However, in 2001 another study found that family cap policies are inconclusive regarding reductions of out-of -wedlock births, abortions, or the size of welfare caseloads.

In contrast, a study in Arkansas and Arizona found that there was no significant difference in birth rates. If in fact these policies correlate with a reduction in birth rates, the question remains whether they are caused by abortions or increased use of contraceptives.

Children Poverty and Health

Critics argue that the child exclusion policy keeps children in poverty by denying them the critical supports they need at a young age to become self-sufficient in adulthood. A decrease in family wealth usually leads to negative effects on children. Specifically, family caps were found to increase the poverty rate of children by 13.1%. Also, critics argue that the costs of child exclusion exceed the savings. Nationally, the costs associated with child poverty total about $500 billion a year, the equivalent of 4% of the GDP.

The effect child poverty
Child poverty
Child poverty refers to the phenomenon of children living in poverty. This applies to children that come from poor families or orphans being raised with limited, or in some cases absent, state resources. Children that fail to meet the minimum acceptable standard of life for the nation where that...

on health also raises concerns. Children living in poverty are 3.6 times more likely to have poor health and 5 times more likely to die from an infectious disease than children that are not poor. In the area of welfare sanctions, such as family caps, a termination or reduction in benefits translates into a a 50% higher risk of lacking nutritionally adequate food, 30% greater risk of hospitalizations for infants and toddlers than those whose assistance were not decreased, and 90% higher risk of being admitted to the hospital during an emergency room visit. Also, the increased need for medical treatment is not only felt by the children but also by society’s health expenditures.

Currently there is an estimate of 108,000 families affected by the family cap in the United States.

Proponents

Proponents of family caps argue that the policy serves as an economic incentive to reduce birth rates and encourage personal responsibility.

Reduction in Birth Rates

Proponents argue that the policy would help improve contraceptive practices or increase abstinence from intercourse. However, as mentioned above, the effects on childbirth have been inconclusive. A New Jersey study found that there was an estimated reduction of 14,000 births. However, a 2001 study found that the effects of the family cap policies were inconclusive, without any finding of a reduction on out-of-wedlock birth, welfare caseload, or abortions.

Personal Responsibility

States support the policy because family caps could limit the number of out-of-wedlock births and strengthen families by limiting the births of additional children.

Other benefits of the policy, as mentioned by the Governor of Mississippi, include a reduction of crime levels caused by lower births among teenage mothers.
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