taxes and spending economic intervention /government ownership social welfare programs civil...

AMERICAN PUBLIC POLICY:AMERICAN PUBLIC POLICY:

Comparisons with OtherComparisons with OtherIndustrialized DemocraciesIndustrialized Democracies

TAXES AND SPENDING ECONOMIC INTERVENTION

/ GOVERNMENT OWNERSHIP SOCIAL WELFARE PROGRAMS CIVIL RIGHTS / CIVIL LIBERTIES EDUCATION POVERTY

Comparisons with Other Industrialized Democracies

American ExceptionalismThe small size of government

General Measures:

– Taxes, employees, economic intervention, government ownership.

Social Insurance (Social Security)

– no national Health, sickness pay, programs established later, fewer benefits, fewer universal programs

Employment Regulation:

– Minimum wage (lower), other protections (fewer)

The small size of American government (contd.)

Public Assistance

– US has more Family Programs:

US lacks:

– Family Allowance

– Strict Child Support enforcement

– Paid Family Leave

– Subsidized Child Care

Total GovernmentUnited Kingdom 6.7 5.6Finland 6.9 5.3Japan 7.6 6.0New Zealand 8.1 6.2Austria 8.2 5.8Denmark 8.3 6.8Italy 8.4 5.6Sweden 8.4 7.0Australia 8.5 5.9Netherlands 8.6 6.0Norway 8.6 7.1Belgium 8.8 7.9Canada 9.5 6.6France 9.5 7.2Switzerland 10.4 7.7Germany 10.6 7.9

United States 13.6 6.1

Health Care Expenditures, 1998(% of GDP/ppp)

source: OECD, OECD in Figures 2001,http://www.oecd.org/publications/figures/

Health Expenditures, % of GDP: 1970-98

0

2

4

6

8

10

12

14

1970 1975 1980 1985 1990 1995 2000

United States

Switzerland

Germany

France

Norway

Canada

Australia

Sweden

Japan

Finland

United Kingdom

-- United States

source: OECD Health Data 2001http://www.oecd.org/els/health/software/fad.htm

Country ($000,000) Per CaptiaUnited States $297,600 $1,153 5%Russia 113,800 762 15China 56,170 48 3France 42,590 740 3Japan 41,730 335 1Germany 36,650 454 2United Kingdom 34,020 587 4Italy 20,570 354 2Saudi Arabia 20,480 1,163 16Korea, South 11,930 267 4Taiwan 10,420 494 5Canada 10,300 371 2India 8,471 9 3Spain 8,289 211 2Australia 7,441 417 3Turkey 7,075 116 6Netherlands 7,055 462 2Israel 6,290 1,279 9Brazil 5,852 37 1Sweden 5,011 574 3Iran 4,857 78 4Poland 4,334 113 2Argentina 4,251 127 2Greece 4,070 389 6Switzerland 4,061 581 2Belgium 3,746 373 2Kuwait 3,545 2,088 13Thailand 3,511 60 3Norway 3,232 752 3Pakistan 3,111 25 6Korea, North (NA) (NA) 23source: US Statistical Abstract , 1996

% of GNP

Sorted bytotal spending(US dollars)

Military Spending, 1993

GOVERNMENT OWNERSHIP

Old Socialism:– public ownership of the means of

production– Great Britain, for example

New Socialism:– private ownership– extensive social welfare programs– Sweden, for example

Social Welfare Programs

Social Insurance (Social Security) Employment Regulation Public Assistance Family Programs

CORE SOCIAL INSURANCE PROGRAMS:

OASDHI–Old Age Pension, Survivors Insurance,

Disability Insurance, Health Insurance

Workers Compensation Unemployment Insurance Sickness Pay National Health Insurance

Dates of Enactment of Social Insurance Programs in Seven NationsWorkman's Pensio

nSickness Unemployment Health

Country Compensation

Insurance Insurance Insurance

Insurance

Canada 1930 1927 1971 1940 1972France 1898 1905 1930 1905 1945

Germany 1884 1889 1883 1927 1880

Italy 1898 1919 1928 1919 1945

Sweden 1901 1913 1910 1934 1965

United King. 1887 1911 1911 1948

1935

1908

United States 1935 ---- 1935 ----

Source: Robert Kurdle and Theodore R. Marmor, "The Development of Welfare

States in North America," in Flora and Heidenheimer (1981, 83)

Employment Regulation:

US Fair Labor Standards Act– 40 hr. week, Minimum Wage,

– Child Labor, Family Leave

US National Labor Relations Act– Collective Bargaining Rights

Worker Training Programs Affirmative Action

France 60.8%Australia 57.7%Ireland 55.8%Greece 51.3%Belgium 49.2%Netherlands 47.1%New Zealand 46.3%Canada 42.5%United Kingdom 41.7%United States 36.4%Japan 32.7%

Source: OECD, EQ 11

Ratio of adult minimum wages to median full-time earnings, 2000

Family Programs:

Family Allowance

Strict Child Support enforcement

Paid Family Leave

Subsidized Child Care

Public Assistance Programs:

AFDC Food Stamps Medicaid SSI (formerly AB, APTD, OAA) General Assistance Poverty Programs:

Meals on Wheels, School Lunch, Head Start, Job Training, WIC, Energy Assistance

Exceptions to Exceptionalism Military spending, only since 1941 Prisons, criminal justice system

– Capital punishment

Judicial system & litigation– ---e.g. states suing cigarette companies

Education (maybe) Regulation (maybe) Tax expenditures Farm subsidies (partly) Prohibition Slavery and Jim Crow laws

Differences in program structure

Europe:

•Comprehensive and Universal programs

US:

•Programs targeted to specific groups

•Means tested

•Decentralized

Health Care: Europe and USEurope National Health

Service, or National Health

Insurance

Covers 80-100% of pop

Covers 70-90 of costs

United States Medicare (elderly) {Parts A & B}

Medicaid (poor) Tax exclusion for employer

coverage (middle class) Indian Health Services CHIPS (working poor,

children) Veterans Health Care More………….

US Programs (continued) Black Lung Health Benefits Municipal Hospitals Community Health Clinics Community Mental Health Kidney dialysis program

Covers 45% of pop Covers 45% of cost

(excluding tax benefits)

Luxembourg 92 100Czech Republic 92 100United Kingdom 84 100Sweden 84 100Iceland 83 100Norway 83 100Denmark 82 100New Zealand 78 100Japan 77 100Finland 77 100Ireland 76 100Switzerland 73 100Italy 71 100Canada 70 100Australia 70 100Spain 77 100France 76 100Hungary 82 99Germany 76 92Netherlands 69 75United States 45 45Copyright OECD HEALTH DATA 2001

% of Costs: 1998

% of Population: 1997

Public Health Care Programs

Public Coverage

Civil Rights and Civil Liberties

Bill of Rights– First Amendment (Speech, Press Religion)– Second Amendment– Fourth, Fifth, and Sixth Amendments

Abortion Affirmative Action Power of the Judicial System

Imprisonment Rate: Selected CounrtiesImprisonment Rate: Selected Counrties

Rate per 100,000 of population

EDUCATION

Historical Development Size % Private Centralization / Equality Quality

USAUSA

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