The Freeman 1972 - The Ludwig von Mises Institute

270 THE FREEMAN Maythat they had been cheating taxpayersout of a million dollars ayear through failure to report incomefrom other sources, includingunemployment benefits. The directorblamed the frauds on a Federalregulation that permitted welfareapplicants to obtain aid simplyby stating that they met allqualifications.In Michigan, state welfare officialsdiscovered cases of money beingpocketed by welfare clients fordental work which was never per- .formed.In California, a group of SanFrancisco Bay area residents - allfully employed - conducted an experimentto prove to county supervisorshow easy it is to get on relief.They traveled the circuit ofwelfare offices, applying for andgetting on welfare, usually withouteven furnishing identification.Governor Reagan said that "onemanaged to get on welfare fourtimes under four different names inone day - all at the same office."In his message to the Californialegislature, Governor Reaganpointed out: "The same governmentthat requires a taxpayingcitizen to document· every statementon his tax return decrees thatquestioning a welfare applicantdemeans and humiliates him."A spot check of welfare rolls inNew York City by the General AccountingOffice, reported in September,1969, showed that 10.7 percent of all families on relief theredid not meet the eligibility requirements,and that 34.1 per centof those who were eligible werebeing overpaid. 5In 1971, New York City ComptrollerAbraham Beame revealedthat the city was losing $2 milliona year as a result of forged checks.More millions were lost becausepeople on relief falsely complainedthat they had not received theirchecks; they were mailedduplicates.Simply requiring those onrelief to come and pick up theirchecks, rather than getting themby mail, lowered New York City'swelfare lists by about 20 per cent.It is impossible to know howmuch of the blame for the nationaland local welfare mess is to be puton relief cheaters and how muchon loose administration. It is madeso easy to get and stay on relieflegally that cheating hardly seemsnecessary.On January 12, 1969, The NewYork Times ran a front-page storyunder the headline: "Millions inCity Poverty Funds Lost by Fraudand Inefficiency." It reported that"Multiple investigations of thecity's $122-million-a-year anti..poverty program are disclosingchronic corruption and administrativechaos," and quoted an assistantdistrict attorney as saying:"It's so bad that it will take