Chapter 19 Social Welfare

Copyright © 2011 Cengage WHO GOVERNS? WHO GOVERNS? 1.How, if at all, have Americans’ views of government’s responsibility to help the “deserving poor” changed over time? 2.Why are some government social welfare programs politically protected while others are politically imperiled? TO WHAT ENDS? TO WHAT ENDS? 1.What does the Constitution mean by “promote the general Welfare”? 2.Should religious groups be eligible to administer some federal welfare programs?

Two Kinds of Welfare Programs 1 st kind= Majoritarian Politics/Programs (Help all/Most) 1 st kind= Majoritarian Politics/Programs (Help all/Most) Examples – Social Security, MedicareExamples – Social Security, Medicare No means test=everyone/no regard to incomeNo means test=everyone/no regard to income Biggest issue – cost/$keep risingBiggest issue – cost/$keep rising 2 nd kind=Client Politics/Programs 2 nd kind=Client Politics/Programs Examples – Medicaid, Food StampsExamples – Medicaid, Food Stamps Means tested=must fall below a certain lineMeans tested=must fall below a certain line Biggest issue – legitimacy=who should benefit/how should they be served?Biggest issue – legitimacy=who should benefit/how should they be served? Copyright © 2011 Cengage

Social Welfare in the United States United States compared to other nations: 1. More restrictive view of who is entitled to governmental assistance (Who deserves it)/blind/elderly/disabled/pover ty people? 1. More restrictive view of who is entitled to governmental assistance (Who deserves it)/blind/elderly/disabled/pover ty people? 2. Slower to embrace the welfare state/took tell Slower to embrace the welfare state/took tell 1935 Copyright © 2011 Cengage Handicapped parking signs are a common reminder of the government’s interest in social welfare. p. 509 Alan Schlein Photography/Corbis

Social Welfare in US 3. states play a large role=federalism/states could experiment with their own role/WI was the only state to have unemployment insurance before states play a large role=federalism/states could experiment with their own role/WI was the only state to have unemployment insurance before nongovernment organization play a large role=Gov’t gives many contracts/grants to private organizations=YMCA/ Jewish Federation 4. nongovernment organization play a large role=Gov’t gives many contracts/grants to private organizations=YMCA/ Jewish Federation Copyright © 2011 Cengage

Figure 19.1 AFDC/TANF, Food Stamps, and SSI Recipients Copyright © 2011 Cengage Note: AFDC/TANF refers to Aid to Families with Dependent Children/ Temporary Assistance for Needy Families; TANF replaced AFDC after SSI refers to Supplemental Security Income. Source: Adapted from U.S. Department of Health and Human Services, Indicators of Welfare Dependence: Annual Report to Congress, 2006.

Social Welfare in the United States Charitable Choice  1990s 4 laws that stated how nonprofit religious organizations could compete to administer certain social programs Charitable Choice  1990s 4 laws that stated how nonprofit religious organizations could compete to administer certain social programs Majoritarian Welfare Programs: 1935 Social Security and Medicare Majoritarian Welfare Programs: 1935 Social Security and Medicare 1. Insurance program/2. assistance program 1. Insurance program/2. assistance program Copyright © 2011 Cengage

Social Welfare in the United States Reforming Majoritarian Welfare Programs: Social Security is projected to face a $4 trillion shortfall over the next 75 years. Reforming Majoritarian Welfare Programs: Social Security is projected to face a $4 trillion shortfall over the next 75 years. Possible solutions: 1. Raise the retirement age. 2. Reduce benefits for higher-earners, 3. Raise payroll taxes, 4. increase wage cap, 5. government make investments. 6. let individuals make investments Possible solutions: 1. Raise the retirement age. 2. Reduce benefits for higher-earners, 3. Raise payroll taxes, 4. increase wage cap, 5. government make investments. 6. let individuals make investments Copyright © 2011 Cengage

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Social Welfare in US Client Welfare Programs: Aid to Families with Dependent Children Client Welfare Programs: Aid to Families with Dependent Children Created for families with out a father/need to complete mandatory job requirements/identify their child’s father, etc./program dismantled become unpopular (births out of wedlock grew) Created for families with out a father/need to complete mandatory job requirements/identify their child’s father, etc./program dismantled become unpopular (births out of wedlock grew) Earned Income Tax Credit (EITC)=tax breaks for those who work for low wages Earned Income Tax Credit (EITC)=tax breaks for those who work for low wages Copyright © 2011 Cengage

In 1932, unemployed workers line up at a soup kitchen during the Great Depression. Source: Topham/The Image Works. In 1934, Huey Long, the popular governor of Louisiana, claimed that Roosevelt was not doing enough to help the common man. But before he could become a serious threat to Roosevelt in the 1936 election, Long was assassinated in Source: Bettmann/CORBIS

Copyright © 2011 Cengage p. 514

Copyright © 2011 Cengage President Lyndon Johnson (left) signs the Medicare Act in 1965 in the company of Vice President Hubert Humphrey (standing) and former president Harry S. Truman (right). Source: Lyndon Baines Johnson Library/National Archives Mitt Romney, then the Republican governor of Massachusetts, signs a bill requiring every state resident to have health insurance. Source: Joe Raedle/Getty Images

Copyright © 2011 Cengage Source: Knowledge Networks, survey of a nationally representative sample of 1,514 adults age twenty-one and older, conducted January 19–29, 2007, as reported in Retirement Security Survey Report (Washington, D.C.: American Association of Retired Persons, February 2007); and Public Agenda Foundation, “Social Security: Bills and Proposals,” 2007, at org/issues/major proposals, citing a January 2005 survey by the Pew Research Center of the Pew Charitable Trusts.

Copyright © 2011 Cengage Source: Laurence Kotlilkoff and Christian Hagist, National Bureau of Economic Research, Working paper no , 2005, reporting OECD data and rounded averages for the period 1970–2002, as cited in National Center for Policy Analysis, Health Care Spending Trends, 2004, table 1.

Copyright © 2011 Cengage When members of Congress went home in August 2009, they encountered a long line of voters angry over the health care debate. Source: Bradley C Bower/AP Photo A girl looks on as her mother displays food stamps. Source: A. Ramey/PhotoEdit

Majoritarian versus Client Politics Majoritarian Politics=almost everyone benefits Majoritarian Politics=almost everyone benefits Client Politics=certain groups benefit Client Politics=certain groups benefit Service Strategy – A policy providing education and job training to help lift people out of poverty Service Strategy – A policy providing education and job training to help lift people out of poverty Income Strategy - A policy giving money to help lift people out of poverty Income Strategy - A policy giving money to help lift people out of poverty Copyright © 2011 Cengage

M E M O R A N D U M To: Ursula Marx, Senate Committee chair From: Cindy Fried, senior staff member Subject: Universal Health Care Legislation You and the committee have two fairly distinct sets of options on this universal health care package. Copyright © 2011 Cengage WHAT WOULD YOU DO?

Arguments for: 1. With more than 47 million Americans, or one in seven, lacking health care coverage, the government needs to enact far-reaching reform to ensure that everyone receives quality medical care. 2. The soaring cost of health care (which is expected to reach approximately one-fifth of the federal budget in the next decade) can be contained only by a public system that has the power to set prices and control costs. 3. Universal health care is a logical expansion of the Medicare and Medicaid programs created in 1965; nearly half a century later, health care should be a fundamental right guaranteed for everyone who lives in the United States. Copyright © 2011 Cengage WHAT WOULD YOU DO?

Arguments against: 1. Though many people lack health insurance, most of them get health care in hospital emergency rooms and from doctors who donate their services. 2. Medical services in the United States are the best in the world, and government controls on costs will serve only to reduce the quality of care available. 3. In an era of budget deficits and trillions of dollars in national debt, the United States cannot afford to expand social welfare programs. Copyright © 2011 Cengage WHAT WOULD YOU DO?

Your decision: Support?Oppose? Copyright © 2011 Cengage WHAT WOULD YOU DO?