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Welfare reform was supposed to end welfare as we know it. And it has. The welfare poor have been largely transformed into the working poor, but their poverty persists. This hard-hitting book takes a close look at where we've gone wrong--and where we might go next if we truly want to improve the lot of America's underclass.
Tracing the roots of recent reforms to the early days of the war on poverty, A Poverty of Imagination describes a social welfare system grown increasingly inept, corrupt, and susceptible to conservative redesign. Investigating the causes of the ongoing failure of welfare assistance, Stoesz focuses on the economic barriers that impede movement out of poverty into the American mainstream. He explores such issues as the heterogeneity of welfare families, generational welfare, inadequate benefits, the negative effects of time limits on welfare recipients, a fringe banking industry that exploits low-income families, the limited capacity of low-wage markets, and the unavailability of credit.
Stoesz suggests that a form of "bootstrap capitalism" would allow individuals and families to participate more fully in American society and achieve upward economic mobility and stability. This proposal, emphasizing wage supplements, asset building, and community capitalism, sets the stage for the next act in poverty policy in the United States. With its valuable insights on the American welfare system and its positive agenda for change, this book makes a significant intervention in our ongoing struggle to come to terms with widespread poverty in the wealthiest nation on earth.