Chapter 16

Poverty in America: The Nature of the Problem The poor: who and how many? The poverty line Children; single-parent families headed by females Minority-group members Rural and inner-city dwellers Living in poverty: by choice or by chance? Many Americans believe poverty is a choice Most poor are in poverty as result of circumstance © 2014, McGraw-Hill Education. All Rights Reserved.2

3 Insert Figure 16-1 Child Poverty Rates

Politics and Policies of Social Welfare Negative government: staying out of people’s lives, giving people maximum freedom Positive government: intervention necessary to buffer economic and social forces beyond a person’s control © 2014, McGraw-Hill Education. All Rights Reserved.4

Politics and Policies of Social Welfare Social insurance programs Widely supported by public Heavily funded Benefits to individuals of all income levels Seen as an earned entitlement Social security Unemployment insurance Medicare © 2014, McGraw-Hill Education. All Rights Reserved.5

Politics and Policies of Social Welfare Public assistance programs Less public support Receive less funding Restricted to people of low income Seen as a hand-out Supplemental Security Income (SSI) Temporary Assistance for Needy Families (TANF) Head Start Earned Income Tax Credit (EITC) © 2014, McGraw-Hill Education. All Rights Reserved.6

7 Insert Figure 16-2 Number of Welfare Recipients,

Politics and Policies of Social Welfare Public assistance programs In-kind benefits: food stamps and housing vouchers Medicaid The SCHIP program The 2010 Health Care Reform Act © 2014, McGraw-Hill Education. All Rights Reserved.8

Politics and Policies of Social Welfare Culture and social welfare U.S. has most inefficient welfare system in the Western world Scores of separate programs that may overlap Large bureaucracy needed to monitor eligibility Inequity Social security and Medicare: many high-income earners receive benefits © 2014, McGraw-Hill Education. All Rights Reserved.9

10 Insert Figure 16-3 The Welfare Bureaucracy

Education as Equality of Opportunity Public education: leveling through the schools America’s heavy investment in public education Goal is equality of opportunity 1964 Elementary and Secondary Education Act is the cornerstone of the federal government’s public-school efforts The 1964 Higher Education Act Pell Grants Federal loans © 2014, McGraw-Hill Education. All Rights Reserved.11

© 2014, McGraw-Hill Education. All Rights Reserved.12 Insert Figure 16-4 The Earning Power of a College Degree

Education as Equality of Opportunity Improving America’s schools American students not high performers relative to other advanced countries, though America spends very highly on education Inequality of wealth in communities © 2014, McGraw-Hill Education. All Rights Reserved.13

Education as Equality of Opportunity Improving America’s schools School choice Has gained momentum in recent years Vouchers Mandatory high-stakes testing No Child Left Behind Controversial increase in weight on testing © 2014, McGraw-Hill Education. All Rights Reserved.14

The American Way of Promoting the General Welfare Democracy and economic security The American way of welfare Differences between the European and American approach © 2014, McGraw-Hill Education. All Rights Reserved.15

© 2014, McGraw-Hill Education. All Rights Reserved.16 Insert Figure 16-5 Income Inequality in the United States