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The 'social welfare' of rich countries

Where is it easier for a poor person burdened with offspring to live: in America, Canada, France, Britain or Japan? BBC explains how the US social system compares to other rich countries?

UNITED STATES

Until 1996, states allocated funding, but the categories of people eligible for payments and generally the spending items were determined by the federal government. 'Most of the money went to direct cash supplements for single-parent families,' explains Liz Schott, senior fellow at the Center on Budget and Policy Priorities. 'Then states got more freedom to decide what to spend money on. Spending increased on various job training, child protection and development programs, as well as support for adoptive parents.'

Overall, the amount of allocated funds, adjusted for inflation, is roughly at the level of 1996. In 2015, an average of 25% of the total went to direct payments, although fund distribution policies vary quite significantly from state to state.

To limit welfare dependency, the 1996 law tightened requirements on states regarding the number of working welfare recipients. In case of violation, a state is fined, which in practice leads to a reduction in the number of assistance recipients. 'The difference between states in the level of social support is extremely large,' notes Liz Schott.

The most typical welfare recipient is a single parent with two children. In the 'stingiest' state, Mississippi, he currently receives $153 per month, in the 'most generous', Alaska, $642. The national average is $418. Welfare can be received for a total of no more than five years over a lifetime.

In the US, there are other types of assistance for the poor – food stamps, the Medicaid medical program, and disability payments. Over the past 20 years, the number of welfare recipients has declined, while food stamp recipients, on the contrary, have increased.

CANADA

The Canadian system was created around the same time as the American one, and, with some differences, is built on the same principles. Provinces have broad freedom of action. Able-bodied recipients of assistance are required to actively seek work. The difference is the lack of a time limit on receiving benefits, and that in some cases, childless individuals can also claim them.

Payments, as in the US, do not reach the official poverty level, but are still somewhat higher. For example, in the province of Ontario, a single parent with one child receives 941 Canadian (724 US) dollars per month. Payments for disabled people are higher.

'Overall, in both North American countries, policy is aimed not so much at reducing poverty as at reducing the number of assistance recipients, but the situation is still worse in the US,' says Daniel Béland, professor at the University of Saskatchewan.

FRANCE

This country is famous for generous social benefits. The closest analogue of American 'welfare' is a program called 'Revenu de solidarité active' (RFA). It is available to persons over 25 years old, or over 18 if they are raising a child alone, or have previously worked and lost their job.

Unlike in the US, having children is not a mandatory condition for assistance, but those with children receive more. If a single parent with two children has no other sources of income and does not claim other types of social assistance, they will be paid a maximum of 1,069 euros per month.

The main difference between the US and Canada, France, Britain and Japan is that in the other countries there are various benefits for families with children regardless of their income. In America, there are tax credits for children, but they can only be used when settling accounts with the state at the end of the tax year.

BRITAIN

In the United Kingdom, there are six programs to support the poor, including unemployment benefits. The closest analogue of American welfare is the Individual Income Support program (Income Support for people), designed for citizens aged 16 to 65 with zero or low income, savings not exceeding 16,000 pounds, and working less than 16 hours per week. It is also possible to receive other types of social assistance if the person meets the requirements.

A single parent with two children can expect 292 pounds ($384) per month.

JAPAN

Until the end of the 1990s, the number of people turning to the state for help in Japan was vanishingly small, and now it is about two percent of the population. About half of them are single citizens over 60 who are unable to find work. The amount of benefit is calculated according to a complex scheme based on the difference between actual disposable income and minimum necessary expenses.

A feature of the Japanese social assistance system is that persons who have able-bodied relatives cannot claim benefits. Here, not only traditions but also the country's civil code obliges one to take care of relatives.