if welfare was to end tomorrow what effect will it have on the economy?

Answer 1

If welfare was to end tomorrow .....

-- There Will Be A Short Term Recession (2-3 Years)
During Which Time

-- All ILLEGAL ALIENS (The Majority, Anyway)
(And SOME Hispanic American Citizens (Immigrants))
Would Abandon The USA For Their Homelands

-- There Would Be A Slow ( At First ) Economic Stimulation
As The Domino Effect Started To Take Place

ie :

-- -- Some 40 Billion Dollars Would Remain In The Economy
Due To The ILLEGAL ALIENS Leaving The Nation
(No Remittances)

-- -- The Cost Of FUEL Will Drop
Due To A Decrease In Demand (20 - 30 Million Less Consumers)

-- -- The Union Movement Will Grow
(See Below - Desperate EMPLOYERS Needing Workers)

-- --Wages Would RISE,
Due To Desperate EMPLOYERS Needing Workers
HIGHER Wages Will Be Offered,
As Well As INCREASED Benefits,
and Improved Working Conditions,
so as to recruit and retain people
from the remaining pool of American workers.

-- -- Unemployed / Under Employed Americans
Would Return To The Workforce -
Especially Housewives And HS Students -
Reducing The Need For Public Assistance
(Which Ended, According To Your Question)

-- -- the same employers would look for ways
to eliminate some of the jobs they now are having trouble filling.
Loosely Translated :
There Will Be An Increase
In Agricultural And Other Industrial Technologies
( ie : Robo Pickers, Assemblers, Etc.)



I Could Continue, But I Won't



Hard To Believe That A Simple Thing
Like Cutting Off Public Assistance (Welfare)
Could Have Such A Myriad Of Effects, Isn't It ??





Short Answer :
After The Initial Kick In The Balls
The Pain Will Go Away
And The Long Term Effect
Will Be A Stronger American Economy







That Said
Keep In Mind That There Are LEGITIMATE Cases
Where People Actually NEED And DESERVE
Public Assistance(Welfare)
ie :
Disabled American Veterans
Elderly Americans
Handicappers
Etc.

Answer 2

Welfare represent less than 1% of our National budget. State budgets vary so it really depends on where you live.

From a National level, it would not affect us much. On a State level we would definitely feel it. However, show me a government that could not figure out how to waste the excess. Would it ever be passed down to the taxpayers? Yeah....and I have some swamp land to sell you. Taxes don't get lowered, they simply raise at different levels.

Answer 3

This country would go into a depression. Welfare is the one contender that keeps prices down in the United States, especially food. Because welfare is the excess of our taxes, there is only X amount of money left over for welfare. People who are on welfare depend on the portion of X amount of money each month for food.

Answer 4

it's not an excess if the people on it far outweigh the people putting into it. I am tired of paying for welfare give me my money so I can save it for my family. If welfare ended tomorrow then maybe people will get of their a s s e s and finally provide for their own families. I know there are people who genuinely need it, but there are far more people taking advantage of it by lying in order to receive benefits.

Answer 5

Entitlements are a huge drain on the Federal budget. So the rebound from it would be immense. However, it would cause the former recipeints to turn to crime rather than work or starve to death. So we'd end up building at tax-payer expense more Prisons, hire more policemen. So the net effect would be negative.

Answer 6

To end welfare is a good thing, than all the lazy americans can stop depending on food stamps and go out and get a real job!

Answer 7

I'm pro-workfare , I belive that people that are unemployed should be given jobs to help pay for the money that they are accepting.

They also should be expected to perform well at these jobs, and have a fair system of calculating their performance.


However, I still belive in the importance of welfare, their are people out there that are unable to work for different reasons, as well as people that are using it to help obtain a education.


Welfare needs to be treated as tool to help achive a goal, not as a way of life.

Answer 8

It will have significant impact. Food Stamps: That food would go unsold to waste. (Food banks take the waste no money to the grocery store chains) Checkers and other support staff would loose their job. They would have a really hard time because there would be no unemployment insurance. And as their children would start to starve and go with out they would be in need or medical care . they would not be able to get it because the medi-caid program no longer exists. The same thing happened to the clinics as to the grocery store, all the nurses and support staff lost their job and on and on it goes. Then to top it off there would be no food on the shelves at all because agri-business would stop producing because they lost the gov. subsidized programs. And so it goes

Answer 9

good for the taxpayers, their state taxes would go way down.

but, all of the welfare dependents who were now left with nothing would overall have a negative effect on the economy.

Answer 10

I think you need to look at history prior to the welfare system (broad public support)... There always was a welfare system of sorts from private charities...People did survive although it was a much harsher life... I do think that today there is a sense of entitlement that would lead to public unrest..There are also far less employment opportunities in the manufacturing sectors..