1. Social Welfare Chapter 19 AP United States Government and Politics Chapter 19 AP United States Government and Politics

2. Social Welfare  Two basic types of welfare programs  First type: benefit most or all people Ex. Social Security, Medicare  Second type: help only a small number of them Ex. Food stamps, Medicaid  Some programs are means test  First type: are not  Second type: are  Two basic types of welfare programs  First type: benefit most or all people Ex. Social Security, Medicare  Second type: help only a small number of them Ex. Food stamps, Medicaid  Some programs are means test  First type: are not  Second type: are

3. Social Welfare  Politics associated with each are different  First type: majoritarian politics  Second type: client politics  Problems associated with each are different  First type: Who will pay? And How much?  Second type: Who will benefit? What form will the benefit take?  Politics associated with each are different  First type: majoritarian politics  Second type: client politics  Problems associated with each are different  First type: Who will pay? And How much?  Second type: Who will benefit? What form will the benefit take?

4. Social Welfare in the United States  Who deserves to benefit?  Insistence that it be only those who cannot help themselves  Slow, steady change in deserving/undeserving line  Alternative view: fair share of national income; government redistribute income  Preference to give services, not money, to help deserving poor  Late arrival of welfare policy  Behind twenty-two European nations  Contrast with Great Britain in 1908  Who deserves to benefit?  Insistence that it be only those who cannot help themselves  Slow, steady change in deserving/undeserving line  Alternative view: fair share of national income; government redistribute income  Preference to give services, not money, to help deserving poor  Late arrival of welfare policy  Behind twenty-two European nations  Contrast with Great Britain in 1908

5. Social Welfare in the United States  Influence of federalism  Federal involvement “illegal” until 1930s  Experiments by state governments  Argued against federal involvement because state already providing welfare  Lobbied for federal involvement to help states  Influence of federalism  Federal involvement “illegal” until 1930s  Experiments by state governments  Argued against federal involvement because state already providing welfare  Lobbied for federal involvement to help states

6. Social Welfare in the United States  Administration via grants and contracts to non-governmental institutions  For-profit firms and non-profit organizations  Religious non-profit organizations and small community-based groups  Charitable Choice enjoyed bipartisan support in 1996  Prohibited proselytizing, instruction or worship services  Bush’s call for expansion led to political firestorm  Increases in awards, programs and public support  Administration via grants and contracts to non-governmental institutions  For-profit firms and non-profit organizations  Religious non-profit organizations and small community-based groups  Charitable Choice enjoyed bipartisan support in 1996  Prohibited proselytizing, instruction or worship services  Bush’s call for expansion led to political firestorm  Increases in awards, programs and public support

7. Social Welfare in the United States Majoritarian Welfare Programs  Social Security Act of 1935  Great Depression of 1929: local relief overwhelmed  Elections of 1932: Democrats and FDR swept in  Legal and political roadblocks; was direct welfare unconstitutional?  Fear of more radical movements  Long’s “Share Our Wealth”  Sinclair’s “End Poverty in California”  Townsend’s old-age program  Cabinet Committee’s two-part plan  “Insurance” for unemployed and elderly  “Assistance” for dependent children, blind, aged  Federally-funded, state administered program under means test  Social Security Act of 1935  Great Depression of 1929: local relief overwhelmed  Elections of 1932: Democrats and FDR swept in  Legal and political roadblocks; was direct welfare unconstitutional?  Fear of more radical movements  Long’s “Share Our Wealth”  Sinclair’s “End Poverty in California”  Townsend’s old-age program  Cabinet Committee’s two-part plan  “Insurance” for unemployed and elderly  “Assistance” for dependent children, blind, aged  Federally-funded, state administered program under means test

8. Social Welfare in the United States Medicare Act of 1965  Medical benefits omitted in 1935: controversial but done to ensure passage  Opponents  AMA  House Ways and Means Committee under Wilbur Mills  1964 elections:Democrats’ big majority altered Ways and Means  Objections anticipated in plan  Application only to aged, not everybody  Only hospital, not doctors’, bills covered  Broadened by Ways and Means to include Medicaid for poor; pay doctors’ bills for elderly  Medical benefits omitted in 1935: controversial but done to ensure passage  Opponents  AMA  House Ways and Means Committee under Wilbur Mills  1964 elections:Democrats’ big majority altered Ways and Means  Objections anticipated in plan  Application only to aged, not everybody  Only hospital, not doctors’, bills covered  Broadened by Ways and Means to include Medicaid for poor; pay doctors’ bills for elderly

9. Social Welfare in the United States Reforming Majoritarian Welfare Programs  Social Security  Not enough people paying into Social Security  Proposals under consideration  Raise retirement age  Reduce benefits for high earners  Raise payroll taxes  Increase wage cap  Have government make investments  Let individuals make investments  Social Security  Not enough people paying into Social Security  Proposals under consideration  Raise retirement age  Reduce benefits for high earners  Raise payroll taxes  Increase wage cap  Have government make investments  Let individuals make investments

10. Social Welfare in the United States Reforming Majoritarian Welfare Programs  Medicare  Problems: huge costs and inefficient  Possible solutions  Get rid of Medicare and have doctors and hospitals work for government  Elderly take Medicare money and buy health insurance  Delaying the inevitable  Clinton and surplus, new benefits  Bush and attempts at new health care measures -- Medicare Modernization Act of 2003  2010 Health Care Bill  Medicare  Problems: huge costs and inefficient  Possible solutions  Get rid of Medicare and have doctors and hospitals work for government  Elderly take Medicare money and buy health insurance  Delaying the inevitable  Clinton and surplus, new benefits  Bush and attempts at new health care measures -- Medicare Modernization Act of 2003  2010 Health Care Bill

12. Social Welfare in the United States A Client Welfare Policy: AFDC  Scarcely noticed part of Social Security Act  Federal government permitted state to  Define need  Set benefit levels  Administer program  Federal government increased rules of operation  New programs (e.g. Food Stamps, Earned Income Tax Credit, free school meals)  Difficult to sustain political support  States complained about federal regulations  Public opinion turned against program  Composition of program participants changed  Temporary Assistance to Needy families (TANF)  Scarcely noticed part of Social Security Act  Federal government permitted state to  Define need  Set benefit levels  Administer program  Federal government increased rules of operation  New programs (e.g. Food Stamps, Earned Income Tax Credit, free school meals)  Difficult to sustain political support  States complained about federal regulations  Public opinion turned against program  Composition of program participants changed  Temporary Assistance to Needy families (TANF)

14. Majoritarian v. Client Politics  Majoritarian politics: almost everybody pays and benefits  Example: Social Security Act and Medicare Act  Client politics: everybody pays, relatively few people benefit  Example: AFDC program  Majoritarian politics: almost everybody pays and benefits  Example: Social Security Act and Medicare Act  Client politics: everybody pays, relatively few people benefit  Example: AFDC program

15. Majoritarian Politics  Programs with widely distributed benefits and costs  Beneficiaries must believe they will come out ahead  Political elites must believe in legitimacy of program  Social Security and Medicare look like “free lunch”  Debate over legitimacy: Social Security (1935)  Constitution did not authorize federal welfare (conservatives)  But benefits were not really a federal expenditure (liberals)  Good politics unless costs to voters exceeds benefits  Programs with widely distributed benefits and costs  Beneficiaries must believe they will come out ahead  Political elites must believe in legitimacy of program  Social Security and Medicare look like “free lunch”  Debate over legitimacy: Social Security (1935)  Constitution did not authorize federal welfare (conservatives)  But benefits were not really a federal expenditure (liberals)  Good politics unless costs to voters exceeds benefits

16. Client Politics  Programs pass if cost to public not perceived as great and client is deserving  American believe today that able- bodied people should work for welfare benefits  Americans prefer service strategy to income strategy  Charles Murray: high welfare benefits made some young people go on welfare rather than seek jobs  No direct evidence supports Murray  Programs pass if cost to public not perceived as great and client is deserving  American believe today that able- bodied people should work for welfare benefits  Americans prefer service strategy to income strategy  Charles Murray: high welfare benefits made some young people go on welfare rather than seek jobs  No direct evidence supports Murray