DateDate: April 5, 2011: April 5, 2011

TopicTopic: Social Welfare Policymaking: Social Welfare Policymaking

AimAim: How does the United States : How does the United States structure its social welfare system?structure its social welfare system?

Do NowDo Now: Multiple Choice Questions. : Multiple Choice Questions. Then write down a brief summary of Then write down a brief summary of

what we covered yesterday. what we covered yesterday.

CHAPTER 18

THIS POOR GUY IS POOR?

WHY DO YOU THINK HE IS POOR?

IS IT HIS FAULT?

IS IT THE UNITED STATES RESPONSIBILITY TO HELP THIS GUY?

The Social Welfare DebateThe Social Welfare Debate Two main typesTwo main types::

Entitlement programsEntitlement programs: : Government benefits that certain Government benefits that certain qualified individuals are entitled to qualified individuals are entitled to by law, regardless of need.by law, regardless of need.

Ex: Medicare. Ex: Medicare. Means-tested programsMeans-tested programs: :

Government programs only Government programs only available to individuals below a available to individuals below a poverty line.poverty line.

Ex: unemployment payments. Ex: unemployment payments. DeservingDeserving vs. vs. UndeservingUndeserving poor. poor.

April 6, 2011April 6, 2011

Do NowDo Now: : Multiple Choice QuestionsMultiple Choice QuestionsNotes.Notes.Video Time.Video Time.Notes. Notes.

From Table 18.1From Table 18.1

Income, Poverty, andIncome, Poverty, andPublic PolicyPublic Policy

Who’s Getting What?Who’s Getting What? IncomeIncome: amount of funds collected between : amount of funds collected between

any two points in time.any two points in time.WealthWealth: amount of funds already owned.: amount of funds already owned.

Income, Poverty, andIncome, Poverty, andPublic PolicyPublic Policy

Who’s Poor in Who’s Poor in America?America? Poverty LinePoverty Line: considers : considers

what a family must spend what a family must spend for an austere standard of for an austere standard of living.living.

In 2011 a family of three In 2011 a family of three had a poverty line of had a poverty line of $18,530.$18,530.

Many people move in and Many people move in and out of poverty in a year’s out of poverty in a year’s time.time.

High rates of poverty High rates of poverty among unmarried women. among unmarried women.

CAMDEN, NEW JERSEY

POVERTY IN AMERICAPOVERTY IN AMERICA

HI, IM MILTON FRIEDMAN YOU READ AN ARTICLE I WROTE THE OTHER DAY!

HELP ME!

Figure 18.1- Poverty Rates, 1999Figure 18.1- Poverty Rates, 1999

Income, Poverty, andIncome, Poverty, andPublic PolicyPublic Policy

April 7, 2011April 7, 2011

Do NowDo Now: : Multiple Choice Questions.Multiple Choice Questions.Notes.Notes.Video Clip.Video Clip.Notes. Notes. Remember your dates. Remember your dates.

IM OLD…I FORGOT WHAT WE WERE DOING YESTERDAY.

Income, Poverty, andIncome, Poverty, andPublic PolicyPublic Policy

What Part Does Government Play?What Part Does Government Play?TaxationTaxation..

Progressive taxProgressive tax: people with higher incomes pay a : people with higher incomes pay a greater share.greater share.

Proportional taxProportional tax: all people pay the same share of their : all people pay the same share of their income. Ex: Not in the US and Canada. income. Ex: Not in the US and Canada.

Regressive taxRegressive tax: opposite of a progressive tax. Ex: tax : opposite of a progressive tax. Ex: tax on food – larger percentage of the persons income. on food – larger percentage of the persons income.

WHAT TYPE OF TAX DO WE HAVE?

IS IT FAIR?

Income, Poverty, andIncome, Poverty, andPublic PolicyPublic Policy

What Part Does Government Play?What Part Does Government Play?Government Expenditures.Government Expenditures.

Transfer paymentsTransfer payments: benefits given by the government : benefits given by the government directly to individuals.directly to individuals.

Some transfer benefits are actual money Some transfer benefits are actual money Social Social Security beneficiaries and retired government employees. Security beneficiaries and retired government employees.

Other transfer benefits are “in kind” benefits where Other transfer benefits are “in kind” benefits where recipients get a benefit without getting actual money.recipients get a benefit without getting actual money.

Ex: Ex: food stampsfood stamps. . Some are entitlement programs, others are means-Some are entitlement programs, others are means-

tested.tested.

April 8, 2011April 8, 2011

Do NowDo Now: VOCABULARY QUIZ – I’ll give : VOCABULARY QUIZ – I’ll give you three minutes to quickly review the you three minutes to quickly review the words, because that’s the kind of guy I am.words, because that’s the kind of guy I am.

Notes.Notes.Video Clip.Video Clip.Notes.Notes.You only have 12 words!. You only have 12 words!.

HERE ARE THE WORDS!HERE ARE THE WORDS!

1.) Social welfare 1.) Social welfare policies.policies.

2.) Income 2.) Income distribution.distribution.

3.) Relative 3.) Relative deprivation.deprivation.

4.) Income.4.) Income. 5.) Wealth.5.) Wealth. 6.) Poverty Line. 6.) Poverty Line.

7.) Culture of poverty.7.) Culture of poverty.8.) Urban underclass.8.) Urban underclass.9.) Progressive Tax.9.) Progressive Tax.10.) Proportional Tax.10.) Proportional Tax.11.) Regressive Tax.11.) Regressive Tax.12.) Transfer 12.) Transfer

Payments. Payments.

April 11, 2011April 11, 2011

Do NowDo Now: : Multiple Choice Questions.Multiple Choice Questions.Notes.Notes.Video Time.Video Time.Notes.Notes.Remember your due datesRemember your due dates be sure to be sure to

do a thorough job on those outlines. do a thorough job on those outlines. May 10May 10thth is so very close. is so very close.

The Evolution of American Social The Evolution of American Social Welfare ProgramsWelfare Programs

The New Deal and the The New Deal and the ElderlyElderly The Great Depression led The Great Depression led

many citizens to want the many citizens to want the government to help government to help protect against economic protect against economic downturns and causes of downturns and causes of poverty beyond their poverty beyond their control.control.

Social Security Act of Social Security Act of 19351935 was the first major was the first major step by the federal step by the federal government to help government to help protect people against protect people against absolute poverty.absolute poverty.

ARE YOU GOING TO HELP ME?

April 12, 2011April 12, 2011

Do NowDo Now: : Multiple Choice QuestionsMultiple Choice QuestionsHand out reading. Hand out reading. I will put the words for the chapters 19/20 I will put the words for the chapters 19/20

quiz online –hard copy to follow later on quiz online –hard copy to follow later on today/tomorrow. today/tomorrow.

Remember the dates. Remember the dates.

The Evolution of American The Evolution of American Social Welfare ProgramsSocial Welfare Programs

President Johnson and the Great SocietyPresident Johnson and the Great SocietyJohnson declared a “war on poverty” and created Johnson declared a “war on poverty” and created

many new programs and it was his leadership that many new programs and it was his leadership that made the difference.made the difference.

Medicare, school-aid programs and anti-poverty Medicare, school-aid programs and anti-poverty programs were some examples.programs were some examples.

Ex: Medicare Ex: Medicare entitlement programentitlement program for Americans for Americans 65 or older.65 or older.

Ex: Medicaid Ex: Medicaid means tested programmeans tested program for low for low income Americansincome Americans

Other programs were designed to provide training Other programs were designed to provide training and jobs, not just transfer payments.and jobs, not just transfer payments.

The Evolution of American The Evolution of American Social Welfare ProgramsSocial Welfare Programs

President Reagan and the Limits to the President Reagan and the Limits to the Great SocietyGreat SocietyReagan targeted benefit programs to cut Reagan targeted benefit programs to cut

government spending.government spending.Many programs had benefits reduced, and people Many programs had benefits reduced, and people

were removed from benefit rolls.were removed from benefit rolls.Democrats worked to lessen the cut of the benefits Democrats worked to lessen the cut of the benefits

to try and protect the truly poor.to try and protect the truly poor.HOW ABOUT THE HOW ABOUT THE EARNED INCOME TAX EARNED INCOME TAX

CREDITCREDIT! ! money that is redistributed to the money that is redistributed to the working poor. working poor.

April 13, 2011April 13, 2011

Do Now: Multiple Choice QuestionsDo Now: Multiple Choice QuestionsRemember the due dates. Remember the due dates. I’m really really old…..what did we do I’m really really old…..what did we do

yesterday? yesterday?

The Evolution of American The Evolution of American Social Welfare ProgramsSocial Welfare Programs

Welfare Reform in 1990’sWelfare Reform in 1990’sClinton (a Democrat) was able to pass a more Clinton (a Democrat) was able to pass a more

significant welfare reform law than his Republican significant welfare reform law than his Republican predecessors.predecessors.

Personal Responsibility and Work Opportunity Personal Responsibility and Work Opportunity Reconciliation Act. Reconciliation Act.

The new program put limits on the amount of time a The new program put limits on the amount of time a person could receive benefits – Federal person could receive benefits – Federal TANFTANF money – Temporary Assistance for Needy Families. money – Temporary Assistance for Needy Families.

It also gave the states money to run their own It also gave the states money to run their own welfare programs.welfare programs.

THIS IS TOM…HE’S LOOKING FORWARD TO GOING TO THE PROM - HE BOUGHT A TUX, GOT A HAIRCUT ETC.……HE ARRIVES AT THE PROM ONLY TO FIND OUT THAT ANYONE WITH THE LAST NAME OF VOLBERG WILL NOT BE ALLOWED IN…

IN THE NEAR FUTURE, WE COULD HAVE THIS SAME PROBLEM WITH SOCIAL SECURITY….BECAUSE IT IS A PAY OUT AS YOU GO SYSTEM…..THE MONEY YOUR’RE PUTTING INTO SS NOW IS BEING PAID OUT TO PEOPLE…..NOW!...SO YOU COULD ARRIVE AT THE PROM ONLY NOT ALLOWED IN!

April 18, 2011April 18, 2011 Do NowDo Now: : Multiple Choice QuestionsMultiple Choice Questions Test tomorrow Test tomorrow focus on chapter 18. focus on chapter 18. What we do not finish you will be responsible for!What we do not finish you will be responsible for! Discretionary SpendingDiscretionary Spending the part of the federal the part of the federal

budget that is negotiated between the Congress and budget that is negotiated between the Congress and President each year as part of the budget process. Ex: President each year as part of the budget process. Ex: Defense budgetDefense budget

Mandatory SpendingMandatory Spending part of the budget that is part of the budget that is mandated. Ex: Medicare/Medicaid/Social Security. mandated. Ex: Medicare/Medicaid/Social Security.

April 10, 2011 April 10, 2011 Budget Deficit = $14.2 Trillion. Budget Deficit = $14.2 Trillion. Budget DeficitBudget Deficit the situation where you spend more the situation where you spend more

money than what you take in. money than what you take in. DebtDebt the amount you borrowed plus your interest. the amount you borrowed plus your interest. LogrollingLogrolling the trading of votes by Congressmen. the trading of votes by Congressmen.

Little influence by the national party. Little influence by the national party.

Multiple Choice Questions 13-23Multiple Choice Questions 13-23

13.) D – 13.) D – 74%74% 14.) E – 14.) E – 73%73% 15.) A – 15.) A – 85%85% 16.) C – 16.) C – 77%77% 17.) D – 17.) D – 68%68% 18.) E – 18.) E – 60%60% 19.) D – 19.) D – 42%42% 20.) B – 20.) B – 62%62% 21.) D – 21.) D – 67%67% 22.) E – 22.) E – 55%55% 23.) A – 23.) A – 45%45%

THESE PERCENTAGES ARE FOR EVERYONE WHO TOOK THE TEST IN 1999.

The Future of Social Welfare PolicyThe Future of Social Welfare Policy

The Entitlement The Entitlement Programs: Living on Programs: Living on Borrowed Time?Borrowed Time? Long-term sustainability of Long-term sustainability of

entitlement programs is entitlement programs is hotly debated.hotly debated.

What can be done about What can be done about Social Security?Social Security?

Cut benefits?Cut benefits? Raise tax rates?Raise tax rates? Allow people to invest on Allow people to invest on

their own?their own?

SHOULD SOCIAL SECURITY BECOME A MEANS TESTED PROGRAM FOR THE ELDERLY?

SHOULD GOVERNMENT SPONSORED RETIREMENT BENEFITS BE A RIGHT?

The Future of Social Welfare PolicyThe Future of Social Welfare Policy

The Means-Tested The Means-Tested Programs: Do They Programs: Do They Work?Work? Programs for the poor Programs for the poor

are not as popular as are not as popular as programs for the elderly.programs for the elderly.

The percentage of The percentage of people in poverty has people in poverty has not changed significantly not changed significantly since the 1960’s.since the 1960’s.

But there is little But there is little agreement on if the agreement on if the programs help people in programs help people in poverty or not.poverty or not.

Date: April 18, 2011Date: April 18, 2011

TopicTopic: Policy Making for Health Care : Policy Making for Health Care and the Environment.and the Environment.

AimAim: How does the government form : How does the government form opinions on health care and the opinions on health care and the

environment?environment?

Do NowDo Now: Multiple Choice Questions.: Multiple Choice Questions.

Health Care PolicyHealth Care Policy The Health of AmericansThe Health of Americans

Americans generally lag behind Americans generally lag behind in some key health statistics.in some key health statistics.

Specifically a lower life Specifically a lower life expectancy and higher infant expectancy and higher infant mortality rate.mortality rate.

The Cost of Health CareThe Cost of Health Care Americans spend more than Americans spend more than

any other country.any other country. Doctors don’t compete, private Doctors don’t compete, private

insurance pays, some insurance pays, some procedures are only available procedures are only available in U.S.in U.S.

Health Care PolicyHealth Care Policy Access to Health CareAccess to Health Care

About 16 million About 16 million Americans have no Americans have no health insurance.health insurance.

Often linked to having a Often linked to having a job- lose the job, lose job- lose the job, lose the health insurance.the health insurance.

About 20 million About 20 million Americans have Americans have inadequate health inadequate health insurance.insurance.

Health Care PolicyHealth Care Policy Access to Health CareAccess to Health Care

Health Maintenance Health Maintenance Organization (HMO)Organization (HMO): : provide health care for a provide health care for a yearly fee through contracts yearly fee through contracts or insurance companies. or insurance companies.

Covers about 60 percent of Covers about 60 percent of Americans. Americans.

Managed careManaged care:: focuses focuses more on prevention of more on prevention of illnesses than treatments.illnesses than treatments.

Managed Care is designed Managed Care is designed to reduce costs through to reduce costs through oversight and limiting patient oversight and limiting patient choices.choices.

Health Care PolicyHealth Care Policy The Role of Government in The Role of Government in

Health CareHealth Care Governments have the Governments have the

smallest role.smallest role. MedicareMedicare: provides : provides

hospitalization insurance for hospitalization insurance for elderly and optional elderly and optional coverage for other medical coverage for other medical expenses.expenses.

MedicaidMedicaid: public assistance : public assistance program to provide health program to provide health care for the poor. Paid for by care for the poor. Paid for by national and state national and state governments.governments.

The Future of Social Welfare The Future of Social Welfare PolicyPolicy

Social Welfare Policy ElsewhereSocial Welfare Policy ElsewhereMany industrialized nations are more Many industrialized nations are more

generous than the U.S.generous than the U.S.But the tax rates are higher in those countries But the tax rates are higher in those countries

than in the U.S.than in the U.S.Other countries (especially European) have Other countries (especially European) have

worked to reform their welfare programs.worked to reform their welfare programs.

Understanding Social Welfare Understanding Social Welfare PolicyPolicy

Democracy and Social WelfareDemocracy and Social WelfareThe U.S. has the smallest welfare system.The U.S. has the smallest welfare system.There is considerable unequal political participation There is considerable unequal political participation

by those that use the programs.by those that use the programs.Social Welfare Policy and the Scope of Social Welfare Policy and the Scope of

GovernmentGovernmentWhen social welfare costs go up, the size of When social welfare costs go up, the size of

government goes up.government goes up.What goes up is often difficult to bring down.What goes up is often difficult to bring down.