Discuss the major programs to combat poverty and evaluate them on the basis of work incentives

One program is education, although this is not a major purpose of schooling. Education spending alone is not sufficient when there are other problems, such as medical or nutritional problems in the home. Further, it is not particularly helpful in lifting adults out of poverty. There are minimal work incentive problems with education.

Temporary Assistance to Needy Families (TANF) provides cash grants to families, with a time limit on lifetime eligibility and strong incentives for recipients to find work. The time limit and work requirements are seen as providing stronger work incentives than AFDC, the program it replaced.

Food stamps are available to poor families. The amount of stamps a family can get and how much they cost depends on a family's income. About 10 percent of all Americans receive food stamps. There are no explicit work incentives with food stamps.

Other programs exist that provide in-kind income and benefits to the poor, such as Medicaid and subsidized public housing. These programs are helpful in aiding the poor. However, since benefits decline as family income increases, there are work disincentives to raise income slightly if it reduces benefits dramatically.