Home
/
RELIGION & LIBERTY ONLINE
/
How social-welfare policy is affecting family formation
How social-welfare policy is affecting family formation
Jan 12, 2026 8:33 AM

In America, the most effective “anti-poverty program” is the institution of work (more specifically, ensuring people have a full-time job). The second most effective program for preventing people from being poor is the institution of marriage.

The poverty rate among married couples in America is around 6 percent, and among married couples who both have full-time jobs the poverty rate is practically zero (0.001 percent). In contrast, the poverty rate among single-dads/moms is much higher: 25 percent for single dads / 31 percent for single moms.

Unfortunately, government-based anti-poverty programs tend to conflict with or discourage the benefits of work and marriage. In his 1984 book Losing Ground, Charles Murray reported that the expansion of federal and state support for poor families during the 1960s-era War on Poverty ended up penalizing marriage. The reason is that government aid is often “means-tested” — recipients can only receive the aid if they do not possess the means to do without that help.

While this may seem like monsensical approach, it can have detrimental unintended consequences. For example, a single-mother may be receiving $15,000 in aid from the government and wish to marry a man who is earning $15,000. Before walking down the aisle, though, she learns that her potential husband’s e would put her over the means-tested threshold and she would lose all government aid. She would be better off, financially speaking, by merely “shacking up” with the man and not getting married at all. This is often known as a “marriage penalty,” where it makes more financial sense for a couple to cohabit rather than to marry. And it has been a public policy problem for almost fifty years. A new report by AEI and the Institute for Family Studies, however, shows that the unintended consequences are beginning to change in unexpected ways.

“In the 1960s and 1970s, social-welfare programs may have been most consequential for family formation among the poorest couples, largely because they were the ones most likely to participate in such programs,” notes the report. “Today, however, the design of social-welfare policy may have the most influence on couples in the lower middle class.”

The report’s analysis of American couples whose oldest child is two years or younger indicates that 82 percent of those in the second and third quintiles of family e ($24,000 to $79,000) face this kind of marriage penalty when es to Medicaid, cash welfare, or food stamps. By contrast, only 66 percent of their counterparts in the bottom quintile (less than $24,000) face such a penalty.

Additionally, they found that almost one-third of Americans aged 18 to 60 report that they personally know someone who has not married for fear of losing means-tested benefits. The report offers four strategies for addressing the marriage penalties embedded within social-welfare policies:

1– In determining eligibility for Medicaid and food stamps, increase the e threshold for married couples with children under five to twice what it is for a single parent with children under five. Such a move would ensure that couples just starting a family do not feel pressured to forgo marriage just to access medical care and food for their families. The cost of this policy change would be limited, since it would only affect families with young children.

2– Offer an annual, refundable tax credit to married couples with children under five that pensate them for any loss in means-tested benefits associated with marrying, up to $1000. This would send a clear signal that the government does not wish to devalue marriage and, for couples, it would help to offset any penalties associated with tying the knot.

3– Work with states to run local experiments designed to eliminate the marriage penalty associated with means-tested policies. States could receive waivers to test a range of strategies to eliminate penalties in munities, and municate to the public that the penalties are no longer in force there. Successful experiments could then be scaled up to the national level in future efforts to reform means-tested policies.

4– Encourage states and caseworkers working with e families to treat two-parent families in much the same way as they do single-parent families. For instance, states could ease the distinctive work requirements that many have in place for two-parent families receiving cash welfare. Reforms such as this one would put two-parent and single-parent families on a more equal footing when es to public assistance. More generally, policymakers and caseworkers should try to eliminate policies and practices that effectively discriminate in favor of single-parent families.

The effect of government aid programs is mixed — and costly. Since the beginning of the war on poverty until 2012, local, state, and federal spending on welfare programs has totaled 15,000,000,000,000. Currently, the United States spends nearly $1 trillion every year to fight poverty, an amount equal to $20,610 for every poor person in America, or $61,830 per poor family of three.

Despite their relative ineffectiveness in alleviating poverty, the programs aren’t going away anytime soon. Today, more than four in ten families in America receive some kind of means-tested government assistance, from Medicaid to food stamps. Instead plaining about social-welfare policy, though, Christians in America should be encouraging reforms that eliminate marriage penalties. In helping to alleviate poverty we need to make sure we aren’t unintentionally hurting the formation of American families.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
The case for faith and a free market
“In modern times, more and more Americans have unwittingly relinquished their freedoms and self-determination to career politicians,” says Daniel Garza, president and chairman of The LIBRE Institute. “Millions have ceded their fate to a raft of government programs and entitlements administered by a powerful central government.” Fighting poverty through work, generated by a free market economic system, is essential to sustain a free society. Ours is the only system the world has ever known that so effectively improves the human...
26th Annual Dinner, ‘a pivotal refresher’
Last night, more than 800 men and women attended the Acton Institute 26th Annual Dinner at the J.W. Marriot in downtown Grand Rapids. The evening was highlighted by the presentation of the 2016 Faith and Freedom Award to the late Justice Antonin G. Scalia, but one person in attendance took note of Father Sirico’s special remarks on the crisis of liberty and the despair it has created. David Bahnsen, a faculty member of Acton University and longtime friend of Acton,...
Immigrants: Don’t vote for what you fled!
Many of America’s immigrants fled nations that were ruined by corrupt politicians and failed government policies. So why, asks Gloria Alvarez, “do you support the same policies in the U.S. that caused you to flee your home country?” Alvarez, Project Director at the National Civic Movement of Guatemala, says that what makes the United States different from her home country of Guatemala is the “unique American belief in limited government” that leads to greater individual freedom and personal responsibility. This...
Understanding elasticity of Demand
Note: This is the eighthpost in a weekly video series on basic microeconomics. Prices can have an effect on the demand of goods and services. But how much does quantity demanded change when prices changes? By a lot or by a little? Elasticity can help us understand this question. This video covers determinants of elasticity such as availability of substitutes, time horizon, classification of goods, nature of goods (is it a necessity or a luxury?), and the size of the...
Video: Rev. Paul Scalia At The Acton Institute 26th Anniversary Dinner
On October 27, 2016, Rev. Paul Scalia addressed the audience at the Acton Institute’s 26th Anniversary Dinner in Grand Rapids, Michigan after accepting the 2016 Faith and Freedom Award on behalf of his late father, Supreme Court Associate Justice Antonin Scalia. More: We’re happy to share these highlights from Justice Scalia’s 1997 keynote address at Acton’s 7th Anniversary Dinner; his wit and good humor are amonghis many great qualities that are deeply missed: ...
The ‘Greed Myth’ and other economic illusions
Confusion about economics is rampant both among elected officials and the electorate. Fortunately, as Jay Richards says, it doesn’t take an advance degree to understand how innovation and free markets lead to flourishing. All it takes is dispelling a few economic illusions: 1. Can’t we build a just society? In seeking a more just society, we must avoid the “Nirvana Myth,” that paring the market economy with an unrealizable ideal. hough the kingdom of God is already present in some...
Do the wealthy pay their fair share of taxes?
During her presidential campaign, Sec. Hillary Clinton has repeatedly said she’d implement a tax system in which the wealthy “pay their fair share in taxes.” Expecting the rich to pay what is “fair” is not asking to much of them. But one question that is rarely considered is, “What if they already do pay their fair share?” Before we can determine whether the rich pay enough we have to first ask what would be “fair.” How much of total tax...
From drug trafficker to urban missionary
Image courtesy of Clifton Reese “When e down here wanting to help, the first thing I tell them is, watch Poverty, Inc.” Clifton Reese of Bonton in the south side of Dallas has taken the Poverty, Inc. message to heart. When asked what he thought of Poverty, Inc. he pointed to his heart and said, “I have it in here.” Clifton does it all; beekeeping, taking care of his four children, urban mission work, coaching, just to name a few...
Acton alumnus John Nunes makes history at Concordia College
John Nunes John Nunes has made history as the first African American president at Concordia College. On October 22, 2017, the Acton Alumnus and long-time Acton friend was installed as the ninth president of Concordia College-New York. Nunes is the only African American college president serving at an orthodox Christian college in the United States. An ordained pastor in the Lutheran Church (Missouri Synod), Nunes was most recently the Emil and Elfriede Jochum Chair at Valparaiso University and prior to...
Read up on Reformation Day
“The attachment of Luther’s 95 Theses” by Julius Hübne Today is a momentous day in Western history, the beginning of what would be known as the Protestant Reformation. With Martin Luther’s pinning of the ninety-five thesis in Wittenberg, Germany, he would light a candle that would change theology, philosophy, and the political landscape of Europe and beyond. With a focus on the individual and his or her relation with the Almighty, Luther’s reforms reinvigorated the spiritual aspect a person’s daily...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved