Question

How does the TANF attempt to loosen the poverty trap?

Short answer

TANF aims to keep welfare users out of poverty by requiring them to work and restricting the duration of their benefits.

Step-by-step solution

Concept Introduction

A poverty trap occurs when a poor individual is unable to escape poverty. Even if he gets a job, a poor individual will remain poor since his government benefits would be reduced.

Explanation

The government has implemented a number of programs to help people who are poor or have incomes that are just above them. TANF is a government program that helps families with dependent children.

TANF stands for Temporary Assistance for Needy Families. When a parent or other guardian cannot afford to provide for their children's basic requirements, the program assists them. It makes it possible for children to live with their families in their own homes while yet receiving the necessary care. It promotes job creation and employment, which helps to minimize deprived parents' reliance on government subsidies. The state can use this money for any anti-poverty program. This money can be used by the state for any anti-poverty program.

Final answer

As a result, TANF encourages poor people to work by giving them chances in an attempt to loosen the poverty trap.