http://www.cato.org/pub_display.php?pub_id=6698
Yet, last year, the federal government spent more than $477 billion on some 50 different programs to fight poverty. That amounts to $12,892 for every poor man, woman, and child in this country. And it does not even begin to count welfare spending by state and local governments. For all the talk about Republican budget cuts, spending on these social programs has increased an inflation-adjusted 22 percent since President Bush took office.
Michael Tanner is director of health and welfare studies and author of The Poverty of Welfare: Helping Others in Civil Society.
More by Michael D. Tanner
Despite this government largesse, 37 million Americans continue to live in poverty. In fact, despite nearly $9 trillion in total welfare spending since Lyndon Johnson declared War on Poverty in 1964, the poverty rate is perilously close to where it was when we began, more than 40 years ago.
Clearly we are doing something wrong. Throwing money at the problem has neither reduced poverty nor made the poor self-sufficient. But government welfare programs have torn at the social fabric of the country and been a significant factor in increasing out-of-wedlock births with all of their attendant problems. They have weakened the work ethic and contributed to rising crime rates. Most tragically of all, the pathologies they engender have been passed on from parent to child, from generation to generation.
Welfare reform was supposed to fix all that. And, indeed, it has had some positive effects. Welfare rolls are down. Since 1996, roughly 2.5 million families have left the program, a 57 percent decline. Critics predicted that welfare reform would throw millions into greater poverty. Instead, it led to modest reductions in poverty, particularly for children, black children, and single-mother households. Most of those who left welfare found work, and of them, the vast majority work full-time. As you would expect, studies show that as former welfare recipients gain work experience, their earnings and benefits increase.
http://en.wikipedia.org/wiki/United_States_federal_budget,_2007
$394.5 billion (+12.4%) - Medicare