Few American social programs have been more unpopular, controversial, or costly than Aid to Families with Dependent Children (AFDC). Its budget, now in the tens of billions of dollars, has become a prominent target for welfare reformers and outraged citizens. Indeed, if public opinion ruled, AFDC would be discarded entirely and replaced with employment. Yet it persists. Steven Teles's provocative study reveals why and tells us what we should do about it.

Teles argues that, over the last thirty years, political debate on AFDC has been dominated by an impasse created by what he calls...