by Matthew J. Geiger

Created on: October 08, 2009   Last Updated: October 09, 2009

Public assistance programs exist to provide an added layer of social safety nets for Americans facing financial hardship. Truthfully, the amount of financial support given to Welfare recipients barely covers the expenses of the modern world, thus these programs can be quite detrimental to the future wellbeing of the individuals receiving benefits, especial their children, as these programs afford little to no room for socioeconomic advancement.

Although these programs should do a better job of encouraging financial growth, especially for the children of those on Welfare, resource caps exist to ensure only the truly needy receive benefits.

The lottery is a game often unwisely relied upon by the desperate and hopeful. For those receiving public assistance, the lottery is probably a luxury that should not be indulged; however, public money is given to individuals to fulfill their needs and some desires while other behaviors like smoking and excess drinking are far more detrimental.

If a Welfare recipient is so lucky to win a substantial amount of money from the lottery, then he or she will be less dependent upon the Welfare system, thus supplements to their income should be decreased or eliminated.

On the other hand, public assistance programs are fundamentally flawed as they encourage dependence on taxpayer subsidies. Public assistance programs, since reforms in the 1990's, place stronger limits on benefits; however, doing so did not address the underlying issues behind the need for public assistance.

Recipients who find low paying work receive a reduction in benefits, thus they remain one step away from public assistance. Unfortunately, unless a lottery winner or newly employed individual receives a significant amount of income, they may well end up back on Welfare or remain on other subsidies like Food Stamps and Medicaid.

Safety nets need to exist in order to create economic stability and break the cycle of poverty, yet the only way to end poverty is to steer our capitalist system to address the needs of the poor. Limiting benefits does little good to end dependency on government support in economically depressed areas as the system fails to put people in the position of financial independence by simply subsidizing them when they are poorest.

This means creating well paying, sustainable jobs for Americans in areas where poverty exists and uplifting people well above the level of poverty needs to be the goal of all public assistance programs.

Public assistance programs need to be more proactive in creating opportunities, helping recipients take advantage of new opportunities, and teaching financial responsibility. A far more proactive Welfare system needs to be part of an overall economic development program, and so, resource caps need to be more dynamic, especially when it comes to promoting education.

In all reality, lottery winnings should be counted as resources against Welfare; however, overall resource caps for those receiving benefit, specifically when considering resources of their aging children, need to encourage financial growth and independence for those trying to change their financial situation.

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