What to do about the poor and needy is a concern of every government. The U.S.is not
exempt from this concern, but care for its poor has changed over time. Until the Great
Depression of the 1930s, state and local governments inAmerica bore some responsibility
for providing assistance to the poor. However, such assistance was minimal at best.
The New Deal policies of President Franklin D. Roosevelt included new federal
initiatives to help those in poverty. With millions of people unemployed during the 1930s
economic depression, welfare assistance was beyond the financial resources of the states.
Therefore, the federal government provided funds for maintaining a minimum standard of
living, either directly to recipients or to the states.
Between 1935 and 1996, federal programs were established that provided additional
welfare benefits, including medical care, public housing, and food stamps. By the 1960s,
however, criticism began to grow that these programs discouraged people from finding
employment. Even defenders of public welfare benefits acknowledged that the system was
imperfect: noting the financial disincentives associated with taking a low-paying job and
losing the array of benefits, especially medical care.