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NancyLebovitz comments on Rationality Quotes August 2013 - Less Wrong
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http://cfed.org/assets/scorecard/2013/rg_AssetLimits_2013.pdf
Short version: it varies quite a bit by state, but some major benefits in a fair number of states have a personal asset limit of two or three thousand dollars.
Thanks! So it looks like there's a limit but at least someone thinks it's a bad idea and some states are changing it...
According to this, the asset limit to qualify for Ontario Works (welfare) is $572 for a single adult and $1,550 for a lone parent. So, worse than is the US... (But it was $2500 for a single adult in 1981...) The 50% earning exemption is new from 2003 though.
Wow I have learned things today!