The 1996 U.S. welfare reform legislation established the Temporary Assistan
ce for Needy Families (TANF) program. TANF represents the ascendance of the
view that market work should be substituted for benefit recipiency. We des
cribe the problems inherent in U.S. social welfare policy prior to TANF (em
phasizing its serious labor supply disincentives), catalogue the wide varie
ty of economic changes implicit in TANF, and describe the policies undertak
en by the state of Wisconsin, a leader in implementing the new federal poli
cy. We conclude by asking if this U.S. reform can serve as a model for othe
r nations.