‘Based on historical standards of material well-being and the terms of engagement, our War on Poverty is largely over and a success.” This statement—from a recent report of the White House Council of Economic Advisers, advocating work requirements to benefits for some able-bodied, working-age adults receiving economic assistance—has attracted much media attention. Unfortunately, most commentators have focused on the “largely over” phrase, neglecting the CEA’s important insight about the success of U.S. welfare programs.

As...