I think you are assuminng a very philanthropic purpose for welfare. In relaty welfare exist to maintain an ignorant class that can be tapped for laborers by governing athority. Simply shut off the welfare and sudenly the government has a large millitay, because the poor will have no other way to get food. Many people have stated what you are saying in many ways, but no politician has the power to change the way it works. If they did change welfare it would not function the way government needs it to.
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This is written more as an abstract piece, so it is not written with any specific model for welfare in mind.
Well that suddenly clears my thoughts... I like Steem's method of 3 month time frame for Steem Power withdrawal in the event people experience hard times.