friday, September 25, 1931 daily nebraskan page 3 Speaker urges welfare reform By Tom Shelton Ronald Reagan's chief deputy director of social welfare when he was governor of California said Thursday night that the "stage is now set for an overhaul of the welfare system." Charles D. Hobbs, who served for Reagan from 1970 through 1972, spoke about "The Decline and Fall of the Welfare Industry" before a crowd of 200 at the Sheldon Memorial Art Museum. Hobbs said the welfare system, which began with the expressed purpose of helping people, has become a sys tem more interested in helping itself. He said the welfare industry is spending too much and that the excalation of welfare expenditures began with Lyndon Johnson's "war on poverty" during the 1960s. Hobbs said the fact that one out of every four persons in the United States is on welfare demonstrates the sys tem has become too generous in deciding which people are "the truly needy." "The welfare industry has escalated the level of need to make more people eligible for benefits," Hobbs said. "The increase of the amount of need is the welfare industry's counterpart to demand." Hobbs said the welfare industry intentionally makes its system as complex as it can so no one, not even Congress, knows exactly how to attack its growth. Reform attempts Hobbs said those who attempt to reform the welfare industry are repeatedly defeated by the system, which he said "altered reform attempts to continue its expansion ary goals." Hobbs criticized the number of welfare programs and said 47 was too many and only complicated things. Hobbs said many families take advantage of being eli gible for too many programs and that overlapping benefits "point out the absurd complexities of the system." Hobbs praised Reagan's performance as governor of California. He said Reagan "stood up and told people the welfare system is not a good way to live." Hobbs said Reagan reduced the number of welfare re cipients in California while increasing the amount paid to the truly needy. Hobbs said the time has come to reverse the growth of welfare expenditures and the number of dependents. He said that by reducing duplicate programming, wel fare costs could be cut 50 percent. In addition, Hobbs ad vocated the reduction of the number of workers in the welfare industry. Decentralization Hobbs said that the welfare system has to be decentra lized to become more efficient. "This will be the most im portant and difficult problem," he said. Hobbs stressed the need for state control of welfare and said control should eventually pass to the local level. Hobbs said welfare reform will take time and that the welfare industry will fight back. "Reform will contradict with the paternal philosophy of the welfare industry which says that welfare recipients can't take care of themselves." Hobbs said welfare is an incentive to be non-productive and has made recipients outsiders to the capitalist system. "It seems to me that capitalism should apply to every one," he said. After his speech, Hobbs answered questions. Wallace C. Peterson, UNL professor of economics, responded to Hobbs' speech. Calling several of Hobbs' figures "severe distortions," Peterson said Hobbs was looking for "a conspiracy and a You're reading about the only thing that has not risen in price in ten years. Non-in,lationary lOVissue fr I V Go-All-Out: Authentic Buffalo Lunches To Go! lt' Ranrlx Whrn M N 1008 P St. K (across from bus depots) You Are! Buffalo Catering, too! 474-9398 True American Food scapegoat' industry. and said Hobbs had found one in the welfare Rare exceptions Peterson said that very few welfare families eligible for more than one benefit take advantage of them. He said that welfare abuses like those reported by the media are rare exceptions. Peterson said Hobbs supported his attack on the wel fare industry with figures distorted because they were re corded during times of recession or war. After Peterson's five-minute impromptu oration, Hobbs commented, "That's an awful lot of question to answer at one time." "Those were comments," Peterson said. His statement drew laughter from the mostly reserved, formally attired crowd, which had politely listened to Hobbs' speech. Hobbs repeated many of his previous statements and said his figures were accurate and often used by "men not generally thought of as conservatives." After the Hobbs-Peterson exchange, several more ques tions were asked, but none had similar impact. Hobbs' presentation was made possible by a grant from the Dr. Sertoli Foundation Forum on the Future of Pri vate Enterprise. It was organized chiefly through the ef forts of Dolores T. Martin, UNL associate professor of economics. The next speech in the series will be Oct. 22. 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