Individuals would receive aid by going to certified case managers who would tailor aid based on "a customized life plan to provide a structured roadmap out of poverty," according to proposal. [...] All participants would be required to meet work requirements to receive aid, and states would be required to give beneficiaries the option of going to non-profit and for-profit organizations for case management. Ryan suggests having participants "sign a contract with consequences for failing to meet the agreed-upon benchmarks" for achieving life goals, as well as rewards for meeting goals ahead of schedule, such as saving bonds.
The broader reason his plan is misguided is because Ryan starts from the mistaken assumption that the current U.S. anti-poverty system is broken, when in fact it's actually quite effective, and not just in lowering market-based poverty rates, which it does by almost half, but also by investing in the longer term well-being of its beneficiaries.... That's not good enough by a long shot, but neither is it motivation to radically change the system in ways that introduce a dangerous set of new risks, as this new plan does, I fear. [...] I don't mean to go all the way to "it-ain't-broke-so-don't-fix-it" regarding our anti-poverty system. More granular input on the ground could surely be helpful, although not in the way Ryan argues here. Remember, the problem faced by the poor is not that anti-poverty programs are ineffective or that they're administered at the federal vs. the state level. It's that the poor don't have the job and earnings opportunities they need.