3.  TAXES AND SPENDING  ECONOMIC INTERVENTION /GOVERNMENT OWNERSHIP  SOCIAL WELFARE PROGRAMS  CIVIL RIGHTS / CIVIL LIBERTIES  EDUCATION  POVERTY Comparisons with Other Industrialized Democracies

4. American Exceptionalism The small size of government General Measures: – Taxes, employees, economic intervention, government ownership. Social Insurance (Social Security) – no national Health, sickness pay, programs established later, fewer benefits, fewer universal programs Employment Regulation: – Minimum wage (lower), other protections (fewer)

5. The small size of American government (contd.) Public Assistance – US has more Family Programs: US lacks: – Family Allowance – Strict Child Support enforcement – Paid Family Leave – Subsidized Child Care

6. OECD countries not included in charts: Czech Republic, Greece, Hungary, Iceland, Korea, Luxembourg, Mexico, Poland, Portugal, Slovak Republic, Turkey Australia Austria Belgium Canada Denmark Finland France Germany Ireland Italy Japan New Zealand Netherlands Norway Spain Sweden Switzerland United Kingdom United States OECD Comparison Countries:

7. Taxes and Spending US taxes and spending are lower than almost any other developed country. Although the US has one of the highest corporate tax rates, its corporate tax revenue (% of GDP) is very low. (perhaps due to corporate tax loopholes). US deficits have also been relatively high -- especially since the European Union has imposed stricter budget controls.

16. Government Employees In terms of total government employees (% of the labor force), the US actually ranks in the middle. This may be due to two things: – The large US military – Federalism and the many layers of state and local government

18. Government Ownership “Old Socialism” or Marxist-socialism stressed public ownership of the means of production. The US historically has had very little government ownership of economic enterprises. In many countries, since 1980, public enterprises have been privatized. “New Socialism” stresses government-provided social welfare benefits rather than government ownership.

21. Social Welfare Programs Social Insurance (Social Security) Employment Regulation Public Assistance Family Programs

22. CORE SOCIAL INSURANCE PROGRAMS : OASDHI – O ld A ge Pension, S urvivors Insurance, Disability Insurance, H ealth I nsurance Workers Compensation Unemployment Insurance Sickness Pay National Health Insurance

23. Dates of Enactment of Social Insurance Programs in Seven Nations Workman'sPensionSicknessUnemploymentHealth Country CompensationInsurance Canada 19301927197119401972 France 18981905193019051945 Germany 18841889188319271880 Italy 1898 1919 192819191945 Sweden 1901 1913 191019341965 United King. 18871911 1948 1935 1908 United States 1935 ----1935 ---- Source: Robert Kurdle and Theodore R. Marmor, "The Development of Welfare States in North America," in Flora and Heidenheimer (1981, 83)

26. Health Care The US is the only developed nation (and among very few nations in the whole world) that does not provide its citizens universal health coverage as a right of citizenship. The US also has by far the most expensive health care system (include government and private spending). The US trails most developed nations on most measures of health status.

27. Health Care

36. Differences in program structure Europe: Comprehensive and Universal programs US: Programs targeted to specific groups Means tested Decentralized

37. Health Care: Europe and US Europe National Health Service, or National Health Insurance  Covers 80-100% of pop  Covers 70-90 of costs United States Medicare (elderly) {Parts A & B} Medicaid (poor) Tax exclusion for employer coverage (middle class) Indian Health Services CHIPS (working poor, children) Veterans Health Care More………….

38. US Programs (continued) Black Lung Health Benefits Municipal Hospitals Community Health Clinics Community Mental Health Kidney dialysis program  Covers 45% of pop  Covers 45% of cost (excluding tax benefits)

39. Employment Regulation: US Fair Labor Standards Act – 40 hr. week, Minimum Wage, – Child Labor, Family Leave US National Labor Relations Act – Collective Bargaining Rights Worker Training Programs Affirmative Action

41. Family Programs: Family Allowance Strict Child Support enforcement Paid Family Leave Subsidized Child Care

42. Public Assistance Programs: AFDC Food Stamps Medicaid SSI ( formerly AB, APTD, OAA ) General Assistance Poverty Programs: Meals on Wheels, School Lunch, Head Start, Job Training, WIC, Energy Assistance

46. Exceptions to Exceptionalism Military spending, only since 1941 Prisons, criminal justice system – Capital punishment Judicial system & litigation – ---e.g. states suing cigarette companies Education (maybe) Regulation (maybe) Tax expenditures Farm subsidies (partly) Prohibition Slavery and Jim Crow laws

47. Education US led the world in establishing public education (with Germany). US spends more on education than any other country. US does poorly on international tests. US has the greatest inequalities in Education funding. US has the highest ratio of public-to-private education spending. Most other countries have free or low cost public university tuition.

53. Civil Rights and Civil Liberties Bill of Rights – First Amendment (Speech, Press Religion) – Second Amendment – Fourth, Fifth, and Sixth Amendments Abortion Affirmative Action Power of the Judicial System