Social Welfare Policymaking Edwards, Wattenberg, and Lineberry Government in America: People, Politics, and Policy Fourteenth Edition Chapter 18 Social Welfare Policymaking Copyright © 2009 Pearson Education, Inc. Publishing as Longman.

THE SKILLS THAT EMPLOYERS WANT

Dependability. Consistency. Positive Attitude. Honesty. Work Values Dependability. Consistency. Positive Attitude. Honesty.

Listening. Speaking. Writing. Communication Skills Listening. Speaking. Writing.

Ability to gather & process information. Math, Reading, & Writing. Academic Competence Ability to gather & process information. Math, Reading, & Writing.

Teamwork With multiple groups.

Interpersonal Relationships Work with a variety of others. Relate to others & their situations.

Problem Solving. Analysis. Creativity. Reasoning. Critical Thinking Problem Solving. Analysis. Creativity. Reasoning.

Ability to learn, change, and grow. Learning Skills Ability to learn, change, and grow.

Acceptance of new methods. Openness to new ideas. Adaptability Acceptance of new methods. Openness to new ideas.

Ability to plan, track, & finish multiple tasks on time. Management Skills Ability to plan, track, & finish multiple tasks on time.

Leadership Skills Coordinating and motivating people. Organizing people and resources. Prioritizing people and time. Having a workable vision.

Sources http://www.opportunityjobnetwork.com/job-resources/help/top-10-skills.html http://www.forbes.com/sites/susanadams/2014/11/12/the-10-skills-employers-most-want-in-2015-graduates/#6c73709b19f6

Types of Social Welfare Entitlement programs According to by law, regardless of need Means-tested programs Available to individuals who qualify

Income, Poverty, and Public Policy Who’s Getting What? Income Funds collected between 2 points in time Income distribution % of national income earned by groups Wealth Value of assets already owned

The 1% Issue Top 400 individuals = bottom 50% (~160,000,000) ~ 1/3 of America’s wealth is held by 1 percent of the population. Top 1% wealth = Bottom 95% Top 400 individuals = bottom 50% (~160,000,000) Newest term “Income Inequality”

New Buzzphrase “Rigged Economy”

Who’s Poor in America? Poverty Line Feminization of poverty Cost of an “austere” standard of living ~13-15 % of Americans Feminization of poverty High poverty among unmarried women ~ 25% of children live in poverty

Poverty line

% of Public School Students Living in Poverty . % of Public School Students Living in Poverty 30-40% 70-80% SOURCE: SEF calculations of NCES Common Core of Data, 2013. Published Jan. 16, 2015

Brookville High School Free Lunch Program 49% http://www.usnews.com/education/best-high-schools/ohio/districts/brookville-local/brookville-high-school-15641/student-body Free Lunch Program 49% Reduced-Price Lunch Program 21% Total Economically Disadvantaged 70%

Who works?

Do Gov’t Programs Decrease Poverty?

Taxation

Taxation Progressive tax Regressive tax People with lower income, People with higher income, pay a higher % Regressive tax People with lower income,

Taxation Earned Income Tax Credit Proportional tax (Flat, Fair tax) All people pay the same % Earned Income Tax Credit Income to very poor people who work

“Wealth Redistribution”

Current Federal Income Tax Is ‘progressive’ and ‘proportional’

Taxation Income from investments is called CAPITAL GAINS Income and capital gains are taxed differently.

Name the tax plan!

Name the tax plan!

Name the tax plan!

Government Expenditures Transfer payments Benefits by the government directly to people Social security (an entitlement program) “in kind” benefits People get a non-cash benefit eg: food stamps (a means-tested program)

Welfare Program Recipients  Back

“POP” ESSAY 50 WORDS/5 MINUTES WHAT SHOULD BE THE GOVERNMENT POLICY CONCERNING ‘THE POOR’?

Helping the Poor? Social Policy and Poverty FDR’s New Deal (1935) Social Security Program AFDC Expanded by President Johnson’s programs “war on poverty” “Great Society”

Generational Differences “Retiring comfortably” is the number one component of the Dream as defined by Baby Boomers (89 percent important), Generation Xers (88 percent), and Millennials (87 percent).   “Raising a family” is next for Boomers (80 percent) and Gen Xers (75 percent), yet for Millennials it is “having a successful career” (81 percent).

Helping the Poor? Social Policy and Poverty Conservatives argued that welfare programs discouraged the poor from solving their problems. President Reagan cut welfare benefits Attitudes toward welfare became “race coded”

Helping the Poor? Social Policy and Poverty Clinton’s Welfare Reforms of 1996 Two “continuous” years limit on ‘welfare’ Lifetime limit of five years placed on ‘welfare’ AFDC changed to TANF Temporary Assistance for Needy Families Welfare rolls declined.

Public Aid 2006 Constant Dollars

Immigration and Social Policy Facts about Immigration Most are NOT illegal immigrants. Most are NOT from Mexico. Most are NOT consuming federal benefits Most are NOT avoiding taxes. Immigration Today 13% of Americans=1st-generation immigrants. Many admitted with high skills & education.

Immigration and Social Policy Immigration has had little support throughout American history. Illegal immigration is a new issue last 35 years. Illegal immigration has been a major issue

Immigration and Social Policy No general policy 1176-1924 (Chinese banned in 1882, Japanese 1907) 1924: Quota system favors NW Europeans 1965 Family based, limits on Latin America 1986 Simpson-Mazzoli Act (Included law against hiring ‘illegals’)

Living on Borrowed Time: Social Security Senior Citizen Benefits Social Security since 1935 Retirement/disability/survivor funds Medicare in 1965. Old age medical coverage

Living on Borrowed Time: Social Security Employers and employees contribute to the Social Security Trust Fund. The Trust Fund will soon be in the red as the ratio of workers to beneficiaries is narrowing.

The Future of Social Security The problem: number contributors (workers) is growing slowly, while number of recipients (retired) is growing rapidly At some time—currently 2038—payouts will exceed income. Solutions of cutting benefits or raising taxes are hard political choices.

Social Security  Back

MEDICARE COST CONCERNS PEOPLE ARE LIVING LONGER MEDICAL COSTS ARE INCREASING

Health Care Spending Increases Each Year  Back

Rising Cost of Entitlements  Back

Social Welfare Policy Elsewhere Most industrialized nations… are more generous than the U.S. have higher tax rates than the U.S. Other countries (especially Europe) have worked to reform their welfare programs, as their programs are in trouble, too.

U.S. MORE CONCERNED ABOUT WHO “DESERVES” HELP SOCIAL WELFARE AMERICAN WELFARE COMPARED TO EUROPE U.S. MORE CONCERNED ABOUT WHO “DESERVES” HELP TRADITIONAL EMPHASIS ON SELF-RELIANCE

Democracy and Social Welfare The U.S. has the smallest social welfare system compared to other industrialized nations.

CHILD CARE COMPARISON CHILD CARE COMPARISON CHILD CARE COMPARISON

Unpaid maternity leave Unpaid paternity leave Country Paid maternity leave Paid paternity leave Unpaid maternity leave Unpaid paternity leave Restrictions Antigua/Barbuda 13 weeks 60%   Argentina 90 days 100% Two days Aruba 12 weeks 100% Bahamas One week family-related leave Paid maternity leave may only be taken once every 36 months Barbados Belize 12 weeks 80% Bolivia 12 weeks 100% of national min. wage + 70% of wages above min. wage Brazil 120 days 100%, salary partially tax-deductible for employers 5 days (Article 10, Paragraph 1, of Temporary Constitutional Provisions Act of Brazilian Constitution)[1] Canada 55% up to $485/week for 50 weeks (15 weeks maternity + 35 weeks parental leave shared with father)[14] 55% up to $485/week for 35 weeks parental leave (shared with mother)[15] 2 weeks Quebec, 70% up to $834.61/week for 25 weeks, then 55% up to $655.76/week for 25 weeks. As with the federal plan, there are 32 weeks of parental leave that can be shared with father. In addition, fathers are eligible for 5 weeks paid leave at a rate of up to 70% of their income or 3 weeks paid leave at a rate of 75% of their income. Chile 18 weeks 100% Article 66 indicates 1 day paid; Law N° 20.047 (2005) increased paternity leave to 4 days paid leave. (edward gonzalez-acosta, The New School) Colombia Law 755 (2002) appended a paragraph to Article 236 of the Labor Code to indicate that fathers have a leave of 4–8 days. (edward gonzalez-acosta, The New School) Costa Rica 4 months 100% Cuba Dominica 12 weeks 60% Dominican Republic Ecuador El Salvador 12 weeks 75% Grenada 3 months 100% (2 months), 60% for 3rd month Guatemala 84 days 100% Two days at birth of child Guyana 13 weeks 70% Haiti 12 weeks 100% for 6 weeks Honduras 10 weeks 100% for 84 days Jamaica 12 weeks 100% for 8 weeks Mexico Nicaragua Panama 14 weeks 100% Paraguay 12 weeks 50% for 9 weeks Peru Saint Lucia 3 months 65% Trinidad/Tobago 13 weeks 60%-100% United States 0 weeks (CA: 6 weeks 55%, NJ 6 weeks 66%, WA 5 weeks $250/week; pregnancy treated as disability: HI 58%, NY 50%, RI formula.)[16] 0 weeks (CA: 6 weeks 55%, NJ 6 weeks 66%, WA 5 weeks $250/week)[16] 12 weeks Family and Medical Leave Act of 1993 includes all public agencies and private companies with 50 or more employees within 75 miles. Employee must have worked for covered employer for at least 12 months prior, and at least 1250 hours in previous 12 months. Other restrictions apply. SeePaid Family Leave (California) for details in CA.[17] Uruguay Three days paternity leave for civil servants Venezuela

Unpaid maternity leave Unpaid paternity leave Country Paid maternity leave Paid paternity leave Unpaid maternity leave Unpaid paternity leave Restrictions Antigua/Barbuda 13 weeks 60%   Argentina 90 days 100% Two days Aruba 12 weeks 100% Bahamas One week family-related leave Paid maternity leave may only be taken once every 36 months Barbados Belize 12 weeks 80% Bolivia 12 weeks 100% of national min. wage + 70% of wages above min. wage Brazil 120 days 100%, salary partially tax-deductible for employers 5 days (Article 10, Paragraph 1, of Temporary Constitutional Provisions Act of Brazilian Constitution)[1] Canada 55% up to $485/week for 50 weeks (15 weeks maternity + 35 weeks parental leave shared with father)[14] 55% up to $485/week for 35 weeks parental leave (shared with mother)[15] 2 weeks Quebec, 70% up to $834.61/week for 25 weeks, then 55% up to $655.76/week for 25 weeks. As with the federal plan, there are 32 weeks of parental leave that can be shared with father. In addition, fathers are eligible for 5 weeks paid leave at a rate of up to 70% of their income or 3 weeks paid leave at a rate of 75% of their income. Chile 18 weeks 100% Article 66 indicates 1 day paid; Law N° 20.047 (2005) increased paternity leave to 4 days paid leave. (edward gonzalez-acosta, The New School) Colombia Law 755 (2002) appended a paragraph to Article 236 of the Labor Code to indicate that fathers have a leave of 4–8 days. (edward gonzalez-acosta, The New School) Costa Rica 4 months 100% Cuba Dominica 12 weeks 60% Dominican Republic Ecuador El Salvador 12 weeks 75% Grenada 3 months 100% (2 months), 60% for 3rd month Guatemala 84 days 100% Two days at birth of child Guyana 13 weeks 70% Haiti 12 weeks 100% for 6 weeks Honduras 10 weeks 100% for 84 days Jamaica 12 weeks 100% for 8 weeks Mexico Nicaragua Panama 14 weeks 100% Paraguay 12 weeks 50% for 9 weeks Peru Saint Lucia 3 months 65% Trinidad/Tobago 13 weeks 60%-100% United States 0 weeks (CA: 6 weeks 55%, NJ 6 weeks 66%, WA 5 weeks $250/week; pregnancy treated as disability: HI 58%, NY 50%, RI formula.)[16] 0 weeks (CA: 6 weeks 55%, NJ 6 weeks 66%, WA 5 weeks $250/week)[16] 12 weeks Family and Medical Leave Act of 1993 includes all public agencies and private companies with 50 or more employees within 75 miles. Employee must have worked for covered employer for at least 12 months prior, and at least 1250 hours in previous 12 months. Other restrictions apply. SeePaid Family Leave (California) for details in CA.[17] Uruguay Three days paternity leave for civil servants Venezuela

Unpaid maternity leave Unpaid paternity leave Country Paid maternity leave Paid paternity leave Unpaid maternity leave Unpaid paternity leave Restrictions Antigua/Barbuda 13 weeks 60%   Argentina 90 days 100% Two days Aruba 12 weeks 100% Bahamas One week family-related leave Paid maternity leave may only be taken once every 36 months Barbados Belize 12 weeks 80% Bolivia 12 weeks 100% of national min. wage + 70% of wages above min. wage Brazil 120 days 100%, salary partially tax-deductible for employers 5 days (Article 10, Paragraph 1, of Temporary Constitutional Provisions Act of Brazilian Constitution)[1] Canada 55% up to $485/week for 50 weeks (15 weeks maternity + 35 weeks parental leave shared with father)[14] 55% up to $485/week for 35 weeks parental leave (shared with mother)[15] 2 weeks Quebec, 70% up to $834.61/week for 25 weeks, then 55% up to $655.76/week for 25 weeks. As with the federal plan, there are 32 weeks of parental leave that can be shared with father. In addition, fathers are eligible for 5 weeks paid leave at a rate of up to 70% of their income or 3 weeks paid leave at a rate of 75% of their income. Chile 18 weeks 100% Article 66 indicates 1 day paid; Law N° 20.047 (2005) increased paternity leave to 4 days paid leave. (edward gonzalez-acosta, The New School) Colombia Law 755 (2002) appended a paragraph to Article 236 of the Labor Code to indicate that fathers have a leave of 4–8 days. (edward gonzalez-acosta, The New School) Costa Rica 4 months 100% Cuba Dominica 12 weeks 60% Dominican Republic Ecuador El Salvador 12 weeks 75% Grenada 3 months 100% (2 months), 60% for 3rd month Guatemala 84 days 100% Two days at birth of child Guyana 13 weeks 70% Haiti 12 weeks 100% for 6 weeks Honduras 10 weeks 100% for 84 days Jamaica 12 weeks 100% for 8 weeks Mexico Nicaragua Panama 14 weeks 100% Paraguay 12 weeks 50% for 9 weeks Peru Saint Lucia 3 months 65% Trinidad/Tobago 13 weeks 60%-100% United States 0 weeks (CA: 6 weeks 55%, NJ 6 weeks 66%, WA 5 weeks $250/week; pregnancy treated as disability: HI 58%, NY 50%, RI formula.)[16] 0 weeks (CA: 6 weeks 55%, NJ 6 weeks 66%, WA 5 weeks $250/week)[16] 12 weeks Family and Medical Leave Act of 1993 includes all public agencies and private companies with 50 or more employees within 75 miles. Employee must have worked for covered employer for at least 12 months prior, and at least 1250 hours in previous 12 months. Other restrictions apply. SeePaid Family Leave (California) for details in CA.[17] Uruguay Three days paternity leave for civil servants Venezuela

Unpaid maternity leave Unpaid paternity leave Country Paid maternity leave Paid paternity leave Unpaid maternity leave Unpaid paternity leave Restrictions Antigua/Barbuda 13 weeks 60%   Argentina 90 days 100% Two days Aruba 12 weeks 100% Bahamas One week family-related leave Paid maternity leave may only be taken once every 36 months Barbados Belize 12 weeks 80% Bolivia 12 weeks 100% of national min. wage + 70% of wages above min. wage Brazil 120 days 100%, salary partially tax-deductible for employers 5 days (Article 10, Paragraph 1, of Temporary Constitutional Provisions Act of Brazilian Constitution)[1] Canada 55% up to $485/week for 50 weeks (15 weeks maternity + 35 weeks parental leave shared with father)[14] 55% up to $485/week for 35 weeks parental leave (shared with mother)[15] 2 weeks Quebec, 70% up to $834.61/week for 25 weeks, then 55% up to $655.76/week for 25 weeks. As with the federal plan, there are 32 weeks of parental leave that can be shared with father. In addition, fathers are eligible for 5 weeks paid leave at a rate of up to 70% of their income or 3 weeks paid leave at a rate of 75% of their income. Chile 18 weeks 100% Article 66 indicates 1 day paid; Law N° 20.047 (2005) increased paternity leave to 4 days paid leave. (edward gonzalez-acosta, The New School) Colombia Law 755 (2002) appended a paragraph to Article 236 of the Labor Code to indicate that fathers have a leave of 4–8 days. (edward gonzalez-acosta, The New School) Costa Rica 4 months 100% Cuba Dominica 12 weeks 60% Dominican Republic Ecuador El Salvador 12 weeks 75% Grenada 3 months 100% (2 months), 60% for 3rd month Guatemala 84 days 100% Two days at birth of child Guyana 13 weeks 70% Haiti 12 weeks 100% for 6 weeks Honduras 10 weeks 100% for 84 days Jamaica 12 weeks 100% for 8 weeks Mexico Nicaragua Panama 14 weeks 100% Paraguay 12 weeks 50% for 9 weeks Peru Saint Lucia 3 months 65% Trinidad/Tobago 13 weeks 60%-100% United States 0 weeks (CA: 6 weeks 55%, NJ 6 weeks 66%, WA 5 weeks $250/week; pregnancy treated as disability: HI 58%, NY 50%, RI formula.)[16] 0 weeks (CA: 6 weeks 55%, NJ 6 weeks 66%, WA 5 weeks $250/week)[16] 12 weeks Family and Medical Leave Act of 1993 includes all public agencies and private companies with 50 or more employees within 75 miles. Employee must have worked for covered employer for at least 12 months prior, and at least 1250 hours in previous 12 months. Other restrictions apply. SeePaid Family Leave (California) for details in CA.[17] Uruguay Three days paternity leave for civil servants Venezuela

Democracy and Social Welfare There is considerable unequal political participation by those that use the programs. Elderly are well-organized and influential The poor are not organized or influential

Social Welfare Policy & the Scope of Government The growth of government has been driven by the growth of social welfare policies, which grows generation by generation.

Without your notebooks, Make a list of the big ideas covered in this chapter

Summary Social welfare policies include entitlement and means-tested programs. Entitlement programs affect social welfare status but are expensive. Welfare has been reformed. Is Social Security / Medicare next?

Copyright © 2009 Pearson Education, Inc. Publishing as Longman. It has been argued that the main reason the United States does not have a ‘welfare state’ similar to that in Europe is the greater ethnic heterogenity in the United States. Reluctance to redistribute to other ethnic groups is argued to cause this. Research have found a statistically significant but relatively weak negative relationship between increasing ethnic heterogenity and support for redistribution and welfare as well as the degree of actual public spending. Related to this is that increased ethnic heterogenity is also associated with decreased “social trust” and social participation in the community. Copyright © 2009 Pearson Education, Inc. Publishing as Longman.