It does away with the idea that government has the responsibility to help people. Newt and Co's only interest is to help the rich and corporations make more money. It's the ultimate in reverse-Robin Hood. The Contract with America is really a contract with the rich and corporate America, not the people. The New Racist Offensive Racism is being used by Gingrich and Co. to split people along racial and national lines and ram through their anti-people agenda.
Racism is used as a weapon against all youth and working people.
The same Republicans, right wing democrats and their corporate backers who want to destroy social welfare programs want to destroy Affirmative Action, the Civil Rights Act, the Voting Rights Act, and other civil rights legislation. It's in all young people's interest, Black, Brown and white, to fight the new racist offensive. The idea is people are poor because they are less intelligent not because they are discriminated against or exploited. Therefore there should be no special programs to help overcome poverty. The Contract with America is The Bell Curve theories in action.