1. 10-2: Entitlement Programs

2. Big Idea: Competing Policymaking Interests
Enduring Understanding:
Public policy is shaped by all branches of government as well as through election results as political parties, interest groups, and individual citizens seek to influence choices in American policies.
Learning Objective:
Explain how the president and Congress make economic policy.

3. Overview of Entitlement programs
Entitlement: program that guarantees a specific level of benefits to persons who meet requirements set by law
By far the largest portion of mandatory spending

4. Overview of Entitlement programs
Barrier to balanced budgets
Available to all
Social security
Medicare
Available to those with incomes below a certain level
Medicaid
Housing assistance
Food stamps

5. Differences of opinion
Liberals
government has an obligation to provide for social welfare
Conservatives
entitlements usurp responsibility and are Used to create a permanent underprivileged class dependent on government handouts

6. Social Security Function Pay 6-8% of first $106,800
Retirees receive monthly payments
Disability insurance
Temporary unemployment insurance

7. Social Security Future threats 1938—25:1 2019—3:1 2040—2:1
Insufficient number of people paying into the system
“Graying of America”
baby boom retirees
Increasing life expectancy
Worker to beneficiary ratio
1938—25:1
2019—3:1
2040—2:1

8. Social Security Possible Solutions Raise retirement age
Freeze benefits
Raise fica taxes
Investment
Privatization

9. Health care Medicare Medicaid Health care assistance to people over 65
Nearly bankrupt due to high medical costs
Medicaid
Health care assistance to the poor, disabled, and children

10. Social Welfare Designed to help targeted groups
Welfare: income/housing assistance
SNAP: nutrition/increase buying power
Despite well-intentioned efforts, poverty levels have been constant and remained a perpetual problem since the first welfare programs were established in the new deal