Illustration: Álvaro Bernis
Feb 19th 2026|5 min read
In the mid-1960s President Lyndon Johnson declared “unconditional war on poverty” and created the modern American welfare state. A nationwide programme of food stamps began in 1964. Two big public health-insurance schemes, Medicare (for the old) and Medicaid (for the poor) started in 1965. Over the following decade, welfare payments grew at an annualised rate of more than 15%. Today, one in eight Americans receives food stamps. All in, America’s welfare state offers help worth about 15% of gdp a year.