Social Welfare Policymaking Warm-up: What should government spend money on? Use your phone to go to www.whitehouse.gov/omb. How are your priorities different from the current administration?

The Great Depression and the New Deal The New Deal created a welfare state. The Social Security Act of 1935 was the first major step by the federal government to help protect people against absolute poverty.

The Great Society Johnson declared a “war on poverty.” Medicaid, school lunch, and low income assistance programs were created.

Social Welfare Programs Entitlement programs: Government benefits that certain qualified individuals are entitled to by law, regardless of need. This includes Social Security and Medicare. Means-tested programs: Government programs only available to individuals below the poverty line. This includes TANF and Medicaid.

The Welfare Reform Act Bipartisan legislation changed welfare to a block grant. States can create their own programs to assist the poor. Aid is limited to five years in total.

Social Welfare Philosophies Conservatives tend to believe that success depends on the individual. Libertarians oppose government intervention in social welfare.

Social Welfare Philosophies Liberals tend to believe that the government should promote fairness and inclusion. Communitarians believe that the government should put the community as a whole above individual interests.

Social Welfare and Taxes Progressive tax: people with higher incomes pay a greater percentage. Proportional tax: all people pay the same percentage of their income. Regressive tax: the poor pay a higher percentage of their income than the rich (sales tax)

How do we compare? https://www.weforum.org/reports/the-global-competitiveness-report-2017-2018 Research other countries. How do high and low tax rates effect competitiveness?