 What is deregulation?

 Describe how social security and the welfare system works.  Define and describe social insurance programs and public assistance programs.  Determine the difference between Medicare and Medicaid.  Describe the basics of the Social Security system and the debate about its future

How involved should the government be in social policies?

 Some think the government – but which level should handle this?  Others charities – examples?  Red Cross, Salvation Army, Goodwill, Habitat for Humanity, Food Banks, etc.

Individual Benefit Programs

 Programs that support any individuals who meet the criteria for eligibility to the benefit (like social security)  Social insurance programs – provide benefits to all income levels  Public assistance – restricted to people of low income

 Based on “insurance” concept  Only individuals who pay into the program are eligible to receive funds from it ▪ Social security, Medicare, unemployment insurance

 Read the excerpt from the pamphlet.  Do you think the ideas suggested in the pamphlet still apply today?

 FDR during the Great Depression

 This social security measure gives at least some protection to thirty millions of our citizens who will reap direct benefits through unemployment compensation, through old-age pensions and through increased services for the protection of children and the prevention of ill health.

 A social insurance program funded through payroll taxes called FICA (Federal Insurance Contributions Act)  Purpose: Provides aid to the unemployed, disabled and elderly

 Who is eligible?  Retired workers, survivors of deceased workers, & disabled workers  Who administers the program?  Federal Government

payroll contributions

Unemployment Insurance & Medicare

 Part of the 1935 Social Security Act provides benefits for workers who lose their jobs involuntarily  Joint federal-state program  Access to benefits is short-term  Limited public support

 Purpose: Enacted in 1965 to provide medical assistance to retirees  Funded through payroll taxes  Does not cover all hospital, nursing home, and physician fees

 Who is eligible?  People 65 & older and certain people on Social Security disability  Who administers the program?  Federal gov’t

Helping the financially needy

 Social welfare programs funded through general tax revenues  Available only to financially needy  Eligibility determined by means tests  Public less supportive of these programs

 Applicants must prove they are poor enough to qualify for the benefit

 Before the Depression, charities & state and local gov’ts took care of the poor

 Combined federal-state program that provides public assistance to the disabled & elderly poor  Recipients have obvious reasons for their inability to provide fully for themselves

 Federally funded, administered by states  Provides an in-kind benefit that is a cash equivalent  Ensures recipients use the assistance in a specified way  Intended to improve nutrition of poor families

 Created in 1965  Funded by general tax revenues  Joint federal-state program

 Purpose: Provides health care for poor people already on welfare  Who is eligible?  Low income families & financially needy people  Who administers the program?  State gov’ts

 Purpose: To provide families in need with a combination of financial assistance and work opportunities  Who administers: States with federal funding

 To transition families off of welfare by setting requirements to find work and time limits on receipt of benefits.

 Run by HUD; Program to provide decent, safe, and sanitary housing in the private market  Assists very low-income families, the elderly, and the disabled.  Administered by state & local gov’ts  30% of the family income goes toward housing & the gov’t pays the landlord the difference

 Mission  Increase homeownership  Support community development  Increase access to affordable housing free from discrimination

 Federal Housing Administration  Insures mortgages for lenders  Provides mortgage loans to buyers  Housing Choice Vouchers

 Prohibits discrimination in the sale, rental, and financing of dwellings based on race, color, national origin, religion, sex, familial status, and handicap (disability)

 With your partner, read the scenarios to determine if the actions are discriminatory or not. Be prepared to defend your response.

 What are some differences between social insurance and public assistance programs?  Is it the government’s responsibility to help people?

 What is a “Baby Boomer?”  Anyone born between 1946 and 1964  Are your parents/guardians/grandparents baby boomers?  How old will baby boomers be in 2025?  How old will you be in 2025?

Will it be there for your generation?

 There were approximately 16 workers to support every one beneficiary of Social Security

 There are only 3.3 workers supporting every Social Security beneficiary

 The government will begin to pay out more in Social Security benefits than it collects in payroll taxes

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 Imagine you are Senators going to make a speech on the floor of the Senate about social security.  Explain:  What, if anything, should be done about Social Security?  How would you pay for the potential lack of funding in Social Security (if taxes, what type of tax)?  How will you convince the largest & most influential group of voters (55+) to go along with your plan?

 Proposals for changing Social Security:  Reduce benefits  Raise payroll tax rate  Raise retirement age  Invest Social Security reserves in stocks & bonds