The Politics of Public Policy Chapter 19: Social Welfare

Social Welfare in the United States Shaped by Four Factors – Americans have more restrictive view of who is entitled The question is mostly, “Who deserves to benefit?” – only those who cannot help themselves – categorizing the poor » deserving poor » undeserving poor

Social Welfare in the United States Shaped by Four Factors –restrictive view – Fair Share? » redistributing wealth to make economic levels more even » Americans tend to think that it isn’t fair to take from the successful just because they are successful to give aid to working people people ABLE to work » defining “fair share” is difficult – better to help the deserving poor than redistribute wealth

Social Welfare in the United States Shaped by Four Factors –restrictive view Welfare policy should encourage – self-reliance – people to work hard to get what they deserve Welfare should encourage people to get SERVICE assistance – education – training – medical care Welfare should not be about just giving out income (money)

Social Welfare in the United States Shaped by Four Factors – Timing – America was “late” getting into the welfare game compared to other rich democracies ordinary politics brought welfare to others crisis politics (Great Depression) brought it to US

Social Welfare in the United States Shaped by Four Factors – Federalism – Is it constitutional for national government to make such payments? Constitution silent on welfare Reserved Powers to the states? – States took early steps laboratories for national policies created conflict for implementing national welfare – States already doing it! – state lobbyists fighting to get federal money

Social Welfare in the United States Shaped by Four Factors – Role of NGOs – NGOs (non-governmental organizations) Federal money to NGOs – contracts – grants

Social Welfare in the United States Shaped by Four Factors – Role of NGOs – Charitable Choice religious groups can get federal money to implement welfare/charity programs Religious groups cannot use money to – proselytize – give religious instruction – provide worship services They may continue to display religious art in buildings providing charitable services still play a LARGE role in providing services

Majoritarian Welfare Programs benefits many burdens many examples – Social Security – Medicare

Majoritarian Welfare Programs Evolution – 1932 election brings Democrats to power Hurdles – belief that it may be unconstitutional – belief that it is wrong because it violates American individualism

Majoritarian Welfare Programs – the plan insurance program – benefits to » unemployed » elderly – burdens on working people – open to ALL Americans regardless of economic class

Majoritarian Welfare Programs – The plan assistance program – benefits ONLY to poor as defined by MEANS TEST – MEANS TEST = economic measure of poverty State involvement – administer the programs – would define poverty means test in the state

Majoritarian Welfare Programs – Health Care held up by Ways and Means Committee conservatives until 1964 election Medicare passed with new Democratic majorities – only to elderly – cover only hospital visits Expanded to – all poor as defined by states – cover doctor visits also

Reforming Majoritarian Programs – Medicare and Social Security challenges more retirees living longer – receiving benefits lower worker/retiree ratios – paying taxes

Reforming Majoritarian Programs – Possible Solutions for Social Security make changes – raise retirement age – freeze retirement benefits – raise social security taxes privatize the program – invest social security taxes in stock market – Risky!

Reforming Majoritarian Programs – Possible Solutions for Social Security hybrid approach – raise retirement age – freeze retirement benefits – allow people to invest some of their tax dollars in mutual funds

Reforming Majoritarian Programs – Medicare costs a lot of money not efficient way of paying for health care – people can visit doctor whenever they feel like they need to – doctors and hospitals paid a fee for each visit (from government)

Reforming Majoritarian Programs – Medicare pathologies – people go to doctors when they really don’t need to – doctors and hospitals overcharge the government for services – government payments are unstable

Reforming Majoritarian Programs – Medicare Possible Solutions – nationalize healthcare » doctors work for government » critics fewer benefits slower care bureaucratic inertia not doctors too long to make a change discourages innovation

Reforming Majoritarian Programs – Medicare Possible Solutions – let elderly buy private insurance with Medicare money

Client Politics – AFDC benefits go to a few burdens are on the many AFDC start – to poor widows due to absent husbands killed in work disasters killed in war – help them to support selves and children – Legitimacy – deemed “innocent victims” of circumstance

Client Politics – AFDC AFDC evolution – states administer programs – federal government sets rules added rules on definition of poor added programs

Client Politics – AFDC Additional mandated programs – states must give Medicaid – job training – child care – food stamps – Earned Income Tax Credit (cash grant to poor parents who are working) – free school meals – housing assistance

Client Politics – AFDC loss of Legitimacy – single moms with no intention of marrying father of child – avoiding work to keep getting benefits – government abolished program – replaced with Temporary Assistance to Needy Families strict rules on – work – length of time on program

Welfare Politics in Summary Majoritarian Politics – benefits to many – burdens on many – adopted if beneficiaries believe benefits exceed their costs political elite believe it is a legitimate government program

Welfare Politics in Summary Client Politics – benefits to small group – burdens on large group – adopted if people believe burden is not too great people believe the recipients are “deserving”

American Perspectives – able-bodied people should be employed work for their benefits (workfare, not welfare)

American Perspectives – Strategies service strategy – provide training – acceptable income strategy – provide money – only in extreme cases