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To: Shack who wrote (67849)2/15/2001 9:59:17 AM
From: flatsville  Read Replies (2) | Respond to of 436258
 
Shack--

However, the economic boom and recent labor shortages also cut welfare costs by almost 50%, and it is a safe bet that some of these expenditures will reappear in a less buoyant economy.

Many of those who left/were forced off the welfare rolls under TANF and various welfare to work programs are marginally employed at best. The employment they find is typically at wages above minimum wage but below the poverty line. Many are still elligible for Food Stamp, Medicaid programs and Child Care subsidies, but are not getting benefits.

If a severe, protracted economic downturn occurs a large percentage of these people will be back to square one. Expect your municipal, county and state taxes to rise as political entities below the federal level struggle to deal with the fallout (from costs related to an increase in crime to foster care expenses) until the TANF reauthorization (reform) in 2002.