Gingrich offered this solution:
Newt refers to a proposal by Peter Ferrara, who was in the White House Office of Policy Development under President Ronald Reagan. The proposal goes like this:
Block grants would still be provided to the states, and
states would guarantee a day’s work assignment (paying the minimum wage) to everyone who reports to their local welfare office before 9:00 a.m.
According to Newt, “The welfare office would provide free daycare for participants’
small children”, and the children would “receive medical care and treatment when necessary” (page 190).
Moreover, those working a certain number of hours would receive a Medicaid
voucher for private health insurance as well as housing assistance so they could purchase a home. They would also receive the earned-income tax credit. Newt also affirms that
the disabled would be trained for some line of work.
Based on minimum wage of $7.25, or $15,000 for a full year’s work, plus EITC, which is $3,000 with one child, and $5,000 with two, plus $1,000 per child tax credit. This plus the in-kind transfers of child care and health care, are an adequate safety net. “
What I like about this proposal is that it would give welfare recipients work experience and job skills rather than setting welfare against work.” Newt Gingrich’s To Save America 7: Welfare Reform, Health Care
- The system would also end all incentives for having children outside of marriage, as a parent would have to work to support a child.