Welfare

Welfare is financial assistance paid to people by governments. Some welfare is general, while specific and can only be invoked under certain circumstances, such as a scholarship. Welfare payments can be made to individuals or to companies or entities--these latter payments are often considered corporate welfare. Individuals may apply for welfare due to disability, lack of education or job training, a low demand for unskilled labor, substance abuse, or other reasons. Assistance may also take the form of other relief, such as tax credits for working mothers.

Welfare is known by a variety of names in different countries, all with the avowed purpose of providing an economic or social safety net for somehow disadvantaged members of society. Almost all developed nations provide some kind of safety net of this kind; nations where such programs are especially prominent are known as welfare states. The desired outcome and purpose of welfare varies. For welfare for the non-disabled, the purpose often is to prevent complete destitution. Welfare or assistance for the disabled, in contrast, does not eventually expect non-dependency, and the justification is more philosophical.

"Corporate welfare," usually in the form of favorable tax policy, is sometimes used in order to provide capital to an industry that the government perceives needs financial assistance in order to survive or to expand, or which the government wishes to support for political or economic purposes. Some of these ideal outcomes and purposes, as well as welfare's effectiveness have been challenged by political groups, such as those who oppose big government and "forced charity", such as minarchists or libertarians.

The amounts paid to recipients are typically modest, and may fall below the poverty line. Recipients must usually demonstrate a low level of income such as by way of "means testing", or financial hardship, or that they satisfy some other requirement such as childcare responsibilities or disability. Those receiving unemployment benefits may also have to regularly demonstrate that they are periodically searching for employment. Some countries assign specific jobs to recipients who must work in these roles in order for welfare payments to continue. In the United States and Canada, such programs are known as workfare.