Poverty Programs
NEW DEAL REFORMS Created during the Depression President Franklin D. Roosevelt
Election of 1932
New Deal: Social Security Gives assistance to low-income, elderly Americans Financed by equal contributions from employers and employees All citizens over age 65 are eligible to receive benefits
New Deal: Unemployment Insurance Allowed unemployed men and women to continue to buy products and services Provided temporary financial help to workers who do not have jobs but are looking for work Most states provided 26 weeks worth of benefits
New Deal: Aid to Families with Dependent Children Offered direct cash payments to low-income families with children under 18 whose parent was deceased, absent, or unemployed Most payments went to single mothers Program was most often associated with the term “welfare” Became TANF
New Deal: Public Housing Aimed at eliminate the slums and instead building affordable housing Congress created the Section 8 program to provide public housing for those in need The government pays part of the rent for low- income tenants
Johnson’s War on Poverty Believed no society could be great and have poverty Began the Great Society Introduced social programs designed to help people move up the economic ladder
Great Society: Food Stamps Gives food credits to needy individuals Based on income No time limit 27 million in 2005
Great Society: Medicaid Free or subsidized medical care for low- income Americans Determined by the state Covered 47 million in 2004
Great Society: Medicare Health insurance for people 65 and older, and some disabled people Covers nearly 40 million Able to get prescription benefits since 2006
Recent Changes: EITC Earned Income Tax Credit Supplements wages of low income families and individuals by reducing tax burden
Recent Changes: Minimum Wage Lowest amount a person can pay somebody else for work. Currently $6.55
Recent Changes: Head Start Gives grants to local agencies to provide comprehensive child development services to low-income families Birth to age five if below poverty line Nearly 1 million participate
Free/Reduced Lunch Provides nutritionally balanced lunches to students Based on household income Schools are reimbursed by Federal Government
WORK AND WELFARE: HOW MANY HOURS SHOULD A PERSON ON WELFARE HAVE TO WORK? Debate!
Work More! Work Less or the Same! People become self- sufficient quicker Lower rates of welfare in states with higher requirements Hours can be devoted to education and job training Single mothers who can’t afford childcare will have a harder time Government should focus on skills training rather than hours Sometimes the jobs just aren’t there. Welfare Work Requirements
SHOULD THE GOVERNMENT FUND FAITH-BASED SERVICE PROVIDERS TO HELP THE POOR? Debate!
Give ‘em More! Take it Away! Well positioned groups make immediate impact Operate more efficiently than government programs Forbid them from converting and there is no link between church and state Taxpayers should not have to fund organizations with views they oppose Blurs the line between church and state Government should be the “fixer,” not private groups Faith-Based Funding
IS THE FEDERAL GOVERNMENT IS DOING ENOUGH TO COMBAT POVERTY? Debate!
Help More! Get Out! In addition to helping individuals, it helps the entire economy Focus on the teaching aspect, not the “handouts” Poverty increases despite economic growth Tax cuts have benefited the wealthy Government doesn’t address the “disease”, just the “symptom” Government’s Role in Combating Poverty