States would compete against each other to reduce benefits and keep taxes low in order to attract new business. In times of economic downturn, people would starve as they did during the Great Depression. Welfare programs such as General Relief financed entirely by states are always the first to be cut. Michigan has entirely abolished its General Relief program, with a resultant increase in hunger and homelessness. Welfare causes teenage pregnancy.
Research shows that there is no correlation between welfare grants and the rate of births.
The teen birth rate in the United States is much higher than that in other western industrialized countries having more generous welfare benefits. The congress is only cutting a few social programs, and leaving most intact. Some Republicans and Democrats in Congress have even suggested the elimination of Pell Grants, Social Security, and Medicaid. Although such cuts may not pass this year, there is every reason to believe that they are next on the chopping block.