Chapter 19 Social Policy US Government AP

2 Kinds of Policy Majoritarian all pay, all benefit Client all pay, few benefit

4 Characteristics of US Social Policy Who benefits—who deserves to benefit? “deserving poor” Did not start until 1935—late Who pays—federalism. State vs. Federal (shared) Much is provided by non-profits— $ from govt. “Faith based initiative”

Means vs. No Means Based on your “means” Your income and ability/non-ability to provide the service yourself Ex—mortgage relief programs

Major Programs OASDI Medicare Unemployment Insurance (no means test) Medicaid SSI TANF Food Stamps Earned Income Tax Credit (means test)

Majoritarian Social Security (insurance) Running out of money for SS—Solutions? Medicare (assistance) Rising health care cost—Solutions?

5 Possible Solutions to SS Raise retirement age to 70 Freeze the benefit ($) Raise SS tax Privatize the payroll deduction Implement a portion of all 4

Solutions to Medicare Socialize doctors (they work for the govt. now) Allow people to take Medicare $ and buy private health insurance For now the govt. threw $ at Medicare and we will see what Obama-care does

Client Programs Aid to Families with Dependent Children (AFDC) Food Stamps Earned Income Tax Credit Temporary Assistance for Needy Families (Valence issues)

Why Client Programs Pass Even though few benefit—the perceived cost is small The “beneficiary” is seen as deserving Perceptions can change over time. (what was once approved can become controversial. Think=Bailout $)

Environment Issues Can be social issues too Entrepreneurial- few pay, all benefit Ex- Saving the rainforest Global Warming

THE Questions Is it the job of the government to support these types of programs? Should they finally be privatized? Service strategy vs. Income strategy “Give a man a fish, he eats for a day. Teach a man to fish, he eats for a lifetime.”

Today Attitudes of citizens have changed --work for your benefits if able bodied --service strategy vs. income strategy “Give a man a fish, he eats for a day. Teach a man to fish, he eats for a lifetime.” Old people vote = Old people policy