Social Welfare Policy Public Policy

How does the government attempt to alleviate poverty? Public Policy intro How does the government attempt to alleviate poverty?

Poverty Public Policy

Social Policy Poverty Poverty Rate “Poor” is a “subjective term. People feel poor relative to those around them Poverty gives the government an objective way to measure who is “poor” The “poverty threshold” or poverty line sets an income limit for people to be considered living in poverty by family size “Poverty Rate” refers to the percentage of people living below or at the poverty threshold. The “poverty rate” in 2016 in Memphis was 26.2% The “poverty rate” in 2016 was 12.7% which means 40 million people were living in poverty

Social Policy Poverty Poverty Threshold for 2017 One person under 65 - $12,752 Two people under 65 - $16,414 Three People under 65 - $19,173 Four people under 65 - $25,283 Five People under 65 - $30,490

Social Policy Poverty Poverty Rate The percentage of people living in poverty in the US has been increasing

Poverty impacts different demographic groups differently Social Policy Poverty Poverty Rate Poverty impacts different demographic groups differently

Social Policy Poverty Poverty Rate

Social Policy Poverty Social Welfare Programs The govt provides support and assistance to specific groups of people These programs cause the most controversy & confusion among people The public supports “political equality” but typically not social or economic equality Americans have strong opinions, but are typically misinformed about who these policies help & how much of the budget is devoted to these programs

Wealth Distribution Public Policy

A comparison of the wealth of various groups in the United States Social Policy Wealth Wealth Distribution A comparison of the wealth of various groups in the United States This is different than income distribution because it looks at the ownership of assets instead of the current incomes

Social Policy Wealth Wealth Distribution

Social Policy Wealth Wealth Distribution

Social Policy Wealth Wealth Distribution

Social Policy Wealth Wealth Distribution

No industrialized country has wider extremes of income than the US Social Policy Wealth Wealth Distribution No industrialized country has wider extremes of income than the US Social mobility in the US is more limited than in other established democracies Poor and middle class incomes have stagnated since the 1970s while those of the rich have grown considerably

Social Policy Wealth Wealth Distribution

Social Policy Wealth Income Distribution

Entitlements & Means Tests Public Policy Entitlements & Means Tests

Social Policy Entitlements Entitlement Programs The government has guaranteed a certain benefit to a population that it cannot control the size of “X benefits are guaranteed to Y recipients” but we cannot control how many people “Y” is. These programs are overwhelmingly popular since almost everyone gets them

Social Policy Means Tested Programs Means Tested Programs Programs that provide benefits only to individuals who qualify because they have some specific need This is a controllable expense. The govt can set a maximum level of funding These are more controversial programs, mostly because of people’s perception of the causes of poverty

Welfare Programs Public Policy

Social Policy Programs Earned Income Tax Credit If your income is low enough, you get the EITC when you file your taxes They are able to subtract a number from what they owe in taxes – making their refunds significantly larger EITC puts as much as $20B per year into the hands of poor families

Social Policy Programs Unemployment Insurance Weekly payments to unemployed workers in amounts set by the states This is for those who are laid off (not fired) and not currently working This is paid for by a tax on employers The amount of the benefit is usually tied to your previous salary

National govt gives states a grant to run Medicaid programs Social Policy Programs Medicaid Pays for medical care and hospital services for those who can’t afford it For people with small incomes who qualify according to state requirements National govt gives states a grant to run Medicaid programs States have to make up the difference if it costs more than the grants.

Social Policy Programs SNAP – Food Stamps Government issued debit cards that can be used to buy food For people whose incomes fall below a certain level This is part of the federal budget & funded by personal income tax It serves 47 million Americans for average benefits of $133.08 per month

Social Policy Programs SSI – Supplemental Security Income Payments from govt to people whose income is below a certain level This is for elderly, blind, or disabled people Funded in the budget, from tax revenue

Social Policy Programs WIC – Nutrition for Women, Infants, and Children A debit card that covers nutritious food at stores that have contracted with the govt This is for women who are pregnant or recent mothers. It covers children up to their 5th birthday Funded in by both the federal government and the states

Social Security Public Policy

Social Policy Social Security Social Security Monthly payments from the Social Security Administration to people For people over 65 or disabled people and surviving members of their families Funded by a 6.2% payroll tax on both employees and employers

Social Policy Social Security Social Security

Social Policy Social Security Social Security

Social Policy Social Security Social Security

Social Policy Social Security Social Security

Social Policy Social Security Social Security

Bigly Ideas Public Policy

Public Policy Wrap Up Poverty vs Poor Entitlements vs Means Tested Social Welfare Programs Social Security’s Future Focus on these things: