> Welfare reform was always bullshit. ... This pushed the costs off the states’ books and the federal budget, and made the costs a problem for social security. It backfired as it created a permanent underclass and drove up Medicaid utilization and costs.

I'm not entirely sure this is a bad result. Driving down welfare costs may indeed drive up medicaid costs, but this seems like a decent trade. Rather than giving people a check, give them health insurance and support for them to get their own job.

Give people the minimum necessary to keep their dignity (basic housing, public education, foodstamps, basic healthcare), and if they want more give them opportunities to grab it.