IN A SURVEY released in 1996 by the Public Agenda Foundation, a large majority of Americans say they believe the welfare system is seriously mismanaged and needs to be changed. What changes do they suggest? They think that people on welfare should participate in education and job training programs so they can go to work; that child care should be available for single mothers so they can finish school and hold down jobs; and finally, that mothers on welfare who give birth to more children should not have their benefits increased.

These suggestions reflect the issues that lie at the center of a fierce debate between Republican and Democratic lawmakers in Washington over the future of the welfare system. Republicans believe that the federal government will never be able to cut costs and balance its budget unless welfare spending is reduced. While Democrats...