2. Social Welfare Programs Chapter 7 additional terms Poverty definition: problems with Absolute vs relative poverty Liberal and conservative views external vs. internal locus of control Types of programs: – social insurance vs public assistance – Cash vs. in-kind

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

4. 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

5. 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)

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

7. 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

8. US Welfare Programs: 1968 ProgramEligibility Federal\State\ Local AFDC (1935)1 or 2 parent families w\ children F\S OAA (1935)ElderlyF\S SSI (1972) AB (1935)BlindF\S APTD (1950s)DisabledF\S Medicaid (1965)Poor (varies)F\S Food Stamps (1962)PoorF General Assistance S\L Poverty programs (not entitlements) Public Housing, Job Training, Food programs, Head Start, health care, energy assistance, social services, …. F\S\L

9. Flaws in U.S Welfare: 1968 · Work disincentives · Family disincentives · Bureaucracy · Certifying eligibility; checking for fraud · Too many agencies and layers of govt. · Inequity · State to state variations in benefits · Arbitrary categories · Stigma

11. Possible Solutions: Carrots and Sticks Sticks: Penalizing Recipients: Workfare (education also?) Reduce benefits Reduce Eligibility Increase Penalties: school truancy, drug testing, additional children Carrots: (major reforms) Negative Income Tax Earned Income Tax Credit (adjustments) Child Support exclusion Child Care Two-parent families Continue Medicaid Job Training

14. 1988 Family Support Act · Increase Child Support Enforcement · Extended Child Care and Medicaid 9 mos. · All states cover 2-parent families · Workfare and Job Training · State Waivers for experimentation

15. 1996 Personal Responsibility and Work Opportunity Reconciliation Act · AFDC becomes TANF · 2-year and 5-year limits · teenage mothers must live at home · legal aliens excluded · stricter workfare requirements · Federal funding: block grant · Much State discretion · SSI: · stricter disability standard for disabled children · legal aliens excluded · drug addiction and alcoholism not covered · FOOD STAMPS · workfare requirements · legal aliens excluded

19. Food Stamp (SNAP) Recipients (000s)