ECONOMIC

TABLE 45.—Federal Government transfer programs, fiscal year 1973ProgramTotalexpenditure(millions ofdollars)Number ofrecipients(thousands)Monthlybenefits perrecipient 1Percent ofrecipientsin poverty 2Social Security:Old age and survivors insurance..Disability insurance42,1705,16225, 2053,272$1391321624Public assistance:Aid to families with dependent children.BlindDisabledAged3,617567661,05110, 980781,1641,91776627360Other cash programs:Veterans' compensation and benefits..Unemployment insurance benefitsIn kind:1,4014,4047,2035,409O)()MedicareMedicaidFood stamps.. _Public housingRent supplementsHomeownership assistance (section 235)..Rental housing assistance (section 236)..9,0394,4022,1361,40810628217010,60023, 53712, 6393,3193731,6475138 81770921 The number of recipients is for individuals, not families.2 Poverty is defined relative to the money income and the size of the recipient's family. Money income includes moneytransfer payments but excludes income received in kind. All percents are estimated.3 Programs with Federal-State sharing of expenses.* Not available.Source: Office of Management and Budget.AID TO FAMILIES WITH DEPENDENT CHILDRENAid to Families with Dependent Children (AFDC) is now the primarycash assistance program run by the States with Federal assistance.EligibilityThe original purpose of the program was to assist children in familieswhere there was need for income because of the death, severe disability, orprolonged absence of the father. The financial aid was intended to enablemothers to stay at home and care for their children, rather than be compelledto work. If the mother did work, her welfare payments were generallyreduced by one dollar for each dollar earned, a provision that eliminated thepecuniary incentive for her to go to work. Families with an able-bodiedfather present who earned little income were not eligible for any federallyaided assistance.The reasons why AFDC recipients lack the father's support have changeddramatically over time. In the 1930's, when the program began, about 75percent of those receiving benefits from the program were children of fatherswho had died or who were severely disabled. By 1971, only 14 percent of thefathers were in this category. The composition of AFDC families has thusshifted toward families with living fathers who are absent, either because ofdivorce or separation or because they are not married to the mother.Attitudes have changed, and the AFDC rules have shifted toward encouragingmothers to work. Starting in 1956, appropriations were authorized168