It provided help to families and people who needed aid but did not have financial ability to obtain the aid ("US Welfare System - Help for US Citizens.") While farmers did have difficult lives, due to low prices, all throughout the 1920s, it was not until after the fall of the stock market in 1929 that the issue spiked and spread to a national level. Once the stock market fell “many businesses began closing down or lying off employees and several families did not have the funds to buy things ("The Great Depression Hits Farms and Cities in the 1930s « Iowa Pathways."). Because of the spike and the need for rapid action, the federal government took strong control of the issue. The federal government almost entirely controlled the distribution of welfare from the 1930’s to the early 1990’s. However, in 1996 President Bill Clinton and the Republican Congress approved a welfare reform law “that gave the control of the welfare system back to the states” ("US Welfare System - Help for US Citizens."). With this new establishment, welfare was no longer completely dependent on the federal government; the states were beginning to take control. Because the federal government relinquished its domineering control over welfare, “there was no longer one source and one set of requirements” ("US Welfare System - Help for …show more content…
According to treasurydirect.gov, over the years the United States has fallen $18,151,939,363,157.16 in debt. The problem with debt is that it takes financial support from other places, which thus limits what can be done within one’s own country, and creates a toll on the economy. “Debt is a two-edged sword. Used wisely and in moderation, it clearly improves welfare. But, when it is used imprudently and in excess, the result can be a disaster. For individual households and firms, overborrowing leads to bankruptcy and financial ruin. For a country, too much debt impairs the government’s ability to deliver essential services to its citizens” (Cecchetti). Medicare and Medicaid are good examples that have come up recently. While these programs have helped many people in the past, they have and will increase our national debt significantly, which will cause problems in the future. The 2013 Report of the Trustees of Medicare and Social Security predicted that under the already existing laws the cost of Medicare will increase from $565 billion (3.6 percent of GDP) to $3.1 trillion (5.8 percent of projected GDP) in 2040 and then to $33.7 trillion (7.2 percent of GDP) by 2087 (BASIUK). By increasing governmental spending, the government cannot start to pay foreign debt, and it makes it so that the middle class has to give up