ALTHOUGH EQUALITY OF OPPORTUNITY IS A CENTRAL VALUE OF AMERICAN SOCIETY, EQUALITY OF OUTCOME IS NOT.

THE U.S. IS CONSIDERED A "WELFARE STATE," MEANING THAT A PORTION OF GDP IS TAKEN BY THE STATE TO PROVIDE SOCIAL WELFARE FOR THE POOR, THE AGED, THE DISABLED, AND OTHERS WHO WOULD NOT BE ABLE TO SURVIVE UNDER MARKET COMPETITION.

IN REALITY, HOWEVER, THE STATE PAYS FAR MORE FOR "WEALTHFARE" THAN WELFARE.

GOVERNMENT TAX BREAKS TO PEOPLE WHO DEDUCTED INTEREST PAYMENTS ON THEIR HOMES AMOUNTED TO $51.03 BILLION IN 1989--COMPARED TO $7 BILLION SPENT FOR SUBSIDIZED HOUSING.

MORE THAN 35 MILLION PEOPLE LIVE BELOW THE POVERTY LINE.

MILLIONS ARE FEMALE HEADS OF HOUSEHOLDS WITH CHILDREN UNDER 18 AND NO HUSBAND PRESENT, OR ILL, OR DISABLED.

OF THE REMAINDER, THE MAJORITY WORKED EITHER FULL OR PART TIME IN THE PREVIOUS YEAR, BUT THEIR WAGES WERE NOT SUFFICIENT TO ELEVATE THEM ABOVE THE POVERTY LINE.

TWO OUT OF THREE IMPOVERISHED ADULTS IN THE U.S. ARE WOMEN. A CONSEQUENCE OF THE PREVAILING SEXISM IN OUR SOCIETY. TERMED THE FEMINIZATION OF POVERTY.

MEMBERS OF MINORITY GROUPS ARE ESPECIALLY LIKELY TO BE INCLUDED AMONG THE POOR.

THE MEDIAN INCOMES OF MINORITY FAMILIES RANGE FROM 57% TO 63% OF THE MEDIAN INCOME OF WHITE FAMILIES.

IN 1991 37 MILLION PEOPLE HAD NO PRIVATE OR PUBLIC HEALTH INSURANCE. ABOUT 1 MILLION FAMILIES A YEAR ARE REFUSED MEDICAL CARE FOR FINANCIAL REASONS.

THE INFANT MORTALITY RATE IN SOME POOR URBAN NEIGHBORHOODS EXCEEDS THE RATE IN MANY THIRD WORLD COUNTRIES.

COMPARED WITH ALL COUNTRIES, THE U.S. RANKS 18TH IN INFANT MORTALITY, 22NT IN UNDER-AGE-FIVE MORTALITY, AND 36TH IN INFANTS WITH LOW BIRTHWEIGHT.

TWENTY PERCENT OF U.S. ADULTS ARE FUNCTIONALLY ILLITERATE.

ABOUT 3 MILLION DO NOT HAVE ANY PERMANENT SHELTER AT ALL.

IN ECONOMIC TERMS THE COST IS HIGH FOR SOCIETY AS WELL. THE POOR CONSTITUTE A RELATIVELY UNPRODUCTIVE MASS OF PEOPLE.

THESE PERSONS ARE WASTED; THEIR WORK OUTPUT IS MARGINAL, AND THEY PAY FEW TAXES.

THE COST TO OTHER TAXPAYERS IS QUITE LARGE, IN THE FORM OF WELFARE PROGRAMS AND CRIME PREVENTION.

AMERICANS HAVE AN AMBIVALENT ATTITUDE TOWARD POVERTY. WE RECOGNIZE THAT THE POOR ARE NOT ALWAYS RESPONSIBLE FOR THEIR SITUATION, YET THOSE ON PUBLIC ASSISTANCE ARE OFTEN PICTURED AS LAZY, SHIFTLESS, OR DISHONEST.

TO BETTER UNDERSTAND THE DEBATE OVER THE FUTURE OF OUR SOCIETY'S SOCIAL WELFARE PROGRAMS, IT WILL BE USEFUL TO REVIEW THE PROGRAMS THAT ARE CURRENTLY IN OPERATION. CURRENT GOVERNMENT PROGRAMS CAN BE DIVIDED INTO FOUR BASIC CATEGORIES.

INTENDED TO COMPENSATE FOR LOSS OF INCOME, REGARDLESS OF NEED.

INCLUDE UNEMPLOYMENT INSURANCE, WORKER'S COMPENSATION PROGRAMS, AND SOCIAL SECURITY PAYMENTS TO THE ELDERLY ALSO FALL INTO THIS CATEGORY.

PROVIDED FOR UNEMPLOYABLE PEOPLE, THOSE WHO ARE NOT COVERED BY ANY FORM OF SOCIAL INSURANCE, AND THOSE WITH SPECIAL NEEDS.

DIRECT SUBSIDIES TO FAMILIES AND INDIVIDUALS--MAINLY AID TO FAMILIES WITH DEPENDENT CHILDREN AFDC.

PROVIDE GOODS AND SERVICES, SUCH AS FOOD, HOUSING, AND MEDICAL CARE, TO THE POOR.

THESE PROGRAMS INCLUDE PUBLIC HOUSING AND URBAN RENEWAL; HEALTH PLANS LIKE MEDICARE AND MEDICAID; AND FOOD SUPPLEMENTS LIKE THE COMMODITY DISTRIBUTION PROGRAM.

THE COSTS OF THESE PROGRAMS, TOGETHER WITH THE PERSISTENCE OF HIGH RATES OF POVERTY, HAVE LED MANY AMERICANS TO CRITICIZE AND OPPOSE "WELFARE."

CRITICS OF WELFARE ARGUE THAT WELFARE POLICIES SHOULD NOT ESTABLISH DISINCENTIVES TO WORK, NOR SHOULD THEY REWARD VICE OR ENCOURAGE DEPENDENCY.

RECENT WELFARE REFORM WHICH HAS LIMITED THE AMOUNT OF TIME ONE CAN STAY ON WELFARE AND FOCUSES ON TRAINING PEOPLE FOR EMPLOYMENT HAVE, SO FAR, BEEN FAIRLY SUCCESSFUL.