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Yes. By giving them just enough to get by, but not enough to get out, they perpetuated the ghettos.
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Perhaps then if the benefits hadn't been tied so strongly to parenthood and the amounts given not been mere subsistence levels, t would have had a different effect. If I understand your argument correctly, the help that was offered was inadequate and therefore created a different set of problems rather than resolving the ones it was set up to resolve.