America's welfare state is quietly evolving from needs-based to an employment-based safety net that rewards working families and fuels dreams of a better life, indicates a new study led by a Michigan State University scholar.
The major reason: the little-known Earned Income Tax Credit, a $65 billion federal tax-relief program for poor, working families. The program has been expanded dramatically during the past 25 years, while cash welfare has been sharply curtailed.