Home
/
RELIGION & LIBERTY ONLINE
/
How social-welfare policy is affecting family formation
How social-welfare policy is affecting family formation
Jan 5, 2026 1:51 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
Resource Page on Caritas in Veritate
Recently the Acton Institute dedicated a resource page on its website to Pope Benedict XVI’s new social encyclical, Caritas in Veritate. The resource page contains blog posts and articles about Caritas in Veritate from policy experts and staff members from the Acton Institute. Furthermore the resource page will be updated with new content and provide an in-depth analysis on Caritas in Veritate. ...
Quick Conservative Protestant Take on Caritas in Veritate
I remember once reading an author who began by saying that he wasn’t a big fan of Paul. I was offended by that because I thought, “Who are you to pronounce yourself a non-fan of Paul? Furthermore, who cares whether you’re a fan of Paul?” I say this because I have been reading Caritas in Veritate by Pope Benedict. As I read, I find I agree and disagree with different portions of it. I can imagine a Catholic saying, “Who...
Caritas in Veritate Not a Leftist Manifesto
A number of journalists and some pundits on the religious left are aiming to own Caritas in Veritate, the new papal encyclical on economics. To them, the encyclical is a polemic against globalization and even the free market itself. Jacqueline Salmon over at the Washington Post’s “On Faith” page, quotes Vincent Miller, a professor who characterizes the encyclical as a “trenchant critique of capitalism,” before she claims that Caritas in Veritate “places the usually conservative pontiff on the left as...
Zenit: Abela on Caritas in Veritate
Andrew Abela, 2009 Novak Award recipient from the Acton Institute, offered a business perspective on Pope Benedict XVI’s new social encyclical, Caritas in Veritate, to the Catholic news service Zenit. In the interview, Abela talked about ways the encyclical could point the way out of the global financial crisis: ZENIT: Does the Holy Father give any concrete means for digging ourselves out of the economic crisis? Abela: Yes. It seems to me that the Holy Father is saying that trust...
Caritas in Veritate: Not the Left’s Encyclical
It was, I suppose, inevitable. The moment Benedict XVI’s social encyclical appeared, the Washington Post, the Los Angeles Times, USA Today, and the usual suspects predictably portrayed Caritas in Veritate as a “left-wing” text. It reflects their habit of presenting the Catholic Church as “conservative” on moral questions and “liberal” on economics. That’s their script, and until the day that the Internet juggernaut deals its final death-blow to the mainstream media, they will stick to it. Unfortunately, there has also...
A Theory of Gift, Duty, and Rights Based on Caritas in Veritate
One of Pope Benedict XVI’s great emphases in his new social encyclical, Caritas in Veritate, is the idea of gift. A gift is something that we have received without earning. As the Pope wisely notes, “The human being is made for gift,” even though man is often “wrongly convinced that he is the sole author of himself, his life and society.” The truth is that we are not the authors of our own lives. We did not earn or create...
Roundtable on Caritas in Veritate
A round up mentary on the new encyclical was published yesterday on the Web site of Catholic World Report. CWR asked “a group of leading Catholic intellectuals to reflect on the encyclical, its place in the larger body of Catholic social teaching, and Pope Benedict’s vision of a well-ordered and just society.” Those who contributed included J. Brian Benestad, Francis J. Beckwith, Father Joseph Fessio, S.J., Richard Garnett, Thomas S. Hibbs, Paul Kengor, George Neumayr, Tracey Rowland, Father James V....
Caritas in Veritate: Doing Justice – Benedict’s Way
As the squabbling continues over the at-times contradictory policy-suggestions contained in Benedict XVI’s social encyclical, there’s a risk that the deeper – and more important – theological themes of the text will be overlooked. It’s also possible some of the wider implications for the Catholic Church’s own self-understanding and the way it consequently approaches questions of justice will be neglected. For historical perspective, we should recall that before, during, and after the Second Vatican Council there was – and remains...
Caritas in Veritate: How to Help the Poor
Throughout Caritas in Veritate there is a strong message to help the poor. This is an age old belief held by many. It can be found throughout the Bible and is preached by Christians and members of differing faiths. What was interesting and refreshing to hear in this new encyclical was how Pope Benedict XVI renewed this call for helping the poor. What has e mon theme presently is to provide aid to poor countries that gets funneled directly to...
International Governance in Caritas in Veritate and The Road to Serfdom
In his new encyclical, Caritas in Veritate, Pope Benedict XVI calls for an international political authority, “so that the concept of the family of nations can acquire real teeth.” He tasks it with issues like human rights, ensuring access to necessities including food and water, and managing the global economy. What might an effective international governing body look like? The Nobel laureate economist Friedrich Hayek asked the same question in 1944 in his book, The Road to Serfdom. Seeing his...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved