Domestic Policy Mr. Stroman AP Government

Social Welfare Domestic policy is often more contentious than economic policy, because it gets to the essence of the purpose of government Social welfare programs, in which government aided the poor, old, and other groups, really only arose post-Great Depression – Great Society programs of Lyndon Johnson expanded on this, though many were cut back under Reagan

Types of Social Welfare Programs Social insurance programs – National insurance programs into which employers and employees pay taxes to eventually “earn” the benefits – Social Security and Medicare Public assistance programs – Not perceived as earned, rather a result of a government responsibility to help the needy – Not required to pay into the system to reap benefits – Welfare or food stamps – Sometimes perceived as a “handout” to the lazy

Social Security Social Security is an entitlement program, which is a government-sponsored program providing guaranteed benefits to those who meet eligibility requirements Gives retired persons above a certain age monthly payments from a trust fund, which is maintained through payroll taxes – To maintain standard of living, recipients are entitled to a COLA, or cost-of-living adjustment, to adjust for inflation

Social Security PROBLEM: The program is running out of money – Why? Because SS is a pay-as-you-go system, workers pay into the system and then collect when they retire – But the ratio of workers to retirees is declining, so more people are collecting than are paying into the system The Social Security Administration also provides payments to those with disabilities Both the federal and state governments also provide temporary benefits to unemployed individuals

Medicare & Medicaid Medicare provides health insurance for individuals over 65 – There is a LOT of waste in Medicare right now. This, along with the high cost of health care, threatens to bankrupt the program Medicaid provides medical and health-related services to low-income parents, children, seniors, and people with disabilities – Jointly funded by states and federal government, and run by individual states

Health Care Our health care system is the costliest in the world, and we are the only industrialized nation without a national health care plan Voters want increased coverage but are not sure how to pay for it Remember our discussion of President Obama’s health care bill

Social Welfare Aid to Families with Dependent Children (AFDC) was the most controversial welfare program Right now, those making below $17,000 for a family of four qualify for aid – The larger the family, the more income is required – Welfare criticized as an incentive for families to have more children The Supplemental Security Income (SSI) program provides payments to help the disabled and the aged who are living at or near the poverty line Food stamps also help low-income individuals

Social Welfare The Welfare Reform Act of 1996 tried to reduce the number of people living on public assistance Social welfare programs must be funded by states and federal government (block grants) – Allows states to experiment with new types of programs to get people off welfare and into work programs

Social Welfare The Welfare Reform Act did four main things: – Abolished AFDC and replaced it with Temporary Assistance for Needy Families (TANF), to incentivize work and reduce federal spending – Required adults to find work within two years or be cut off – Paced a lifetime limit of 5 years for welfare eligibility – Prohibiting aliens from receiving assistance