1. Social Policy But the government does help…to the tune of 49% of Americans, through entitlements. We’ll address how social policy plays a role in the daily lives of Americans Guiding question—who shapes policy?

2. Wealth and the United States The US is the wealthiest country in the World. Its Gross Domestic Product (GDP) is 16.6 trillion dollars (2013), followed by China with 9.4 trillion dollars and Japan, 5.99 trillion dollars. Gross Domestic Product is one way to measure the value of an economy through calculating the total market value of all final goods and services produced within a country in a year.

3. International Monetary Fund

4. Income Taxes: By Nation

5. Office of Budget and Management: Over 90 percent of revenues come from three major categories of taxes: individual 47%, Payroll Taxes 33%, and corporate income taxes 12%. Federal Revenue (Income)

6. Dollar Bill Y’all

7. Entitlement Programs They are government program that provide individuals with personal financial benefits (or sometimes government-provided goods or services) to which an indefinite number of potential beneficiaries have a legal right whenever they meet eligibility conditions that are specified by the standing law that authorizes the program. Federal Insurance Contributions Act (FICA) is the tax that funds the most common examples of entitlement programs: Social Security, Medicare, Medicaid, Unemployment Insurance, State Children's Health Insurance Program (SCHIP), and Welfare (Aid to Families with Dependent Children AFDC and Temporary Assistance to Needy Families TANF).

8. Social Security (Retirement Pensions)

9. Social Security Social security is a government program designed to provide for the basic economic security and welfare of individuals and their dependents. The programs classified under the term social security differ from one country to another, but all are the result of government legislation and all are designed to provide some kind of monetary payment to defray a loss of or a deficiency in income. The Social Security Agency issues checks to 63.2 million Americans every month. The average retired person receives $1,247 a month.

10. Is social security doomed? How can we save it? What’s the current equation? The Social Security tax for 2013 reverts back to its normal rates. The tax rate for 2013 is: Employee- portion: 6.2% of wage earnings, up to the maximum wage base of $113,700; Employer-portion: 6.2% of wage earnings, up to the maximum wage base of $113,700

11. Social Security Reform Proposals Increase the percentage people contribute and reduce benefits Remove or adjust cap (currently only on the first $90,000 of their wages, CATO estimates this would increase tax revenue $541 billion in five years) Allow younger citizens to have private accounts (similar to a 401K) through the government and their payroll Abolish social security for future generations and have them use private companies or employers

12. George Bush’s Plan 2005 1/3 payroll tax privately invested (businesses currently pay 6.2% and employees pay 6.2% in Social Security Invested privately in choice of 5 highly diversified index funds Contributions capped at $1,000 per year No withdrawal from accounts Estimated $2 trillion transition cost Was Bush Right?

13. Health Care Entitlements Medicare is a national insurance health insurance program for the elderly (age 65) and the disabled. Medicare does not cover all medical cots and surgeries. Medicaid provides medical benefits for low- income persons of all ages. Eligibility is reserved solely for those receiving welfare payments.

15. Medicare and Medicaid Reform Which one closely resembles the ACA, Affordable Care Act (Obama Care)? Put more money into Medicare and Medicaid through payroll raising taxes. Create a national health care system (like most developed nations) and this way everyone will pay into one system. Privatize these programs (still funded by taxes) and have companies bid for the lowest cost. Eliminate these programs and rely on private industry and faith-based groups. Stop federal programs and encourage states to expand their programs.

16. The Policy Debate…socialism? Most entitlement programs find their origin in the New Deal (FDR) and the Great Society (LBJ), although there were expansions during other presidencies. Depending on the party in control of Congress, there are very different views of entitlement programs. Liberals tend to favor expansion and reform in programs. They tend to believe it is the government’s responsibility to provide social programs. Conservatives tend to favor reduction, privatization, and elimination of programs. They tend to believe that private organizations maintain these programs better. About 49% of Americans, or 82 Million families receive entitlements

17. United States: Medicine and Health Care

19. Health Care in the United States some 2012-2014 stats… In the US there is currently a mostly private health care system. Public health care is provided for to the poor and elderly. Dilemmas with current system: – Rising cost of health (1.3% rate of inflation 50 year low) – High numbers of uninsured (48 million) – Unnecessary procedures (billions in health fraud) – Endless paperwork – Litigation expenses (e.g., CA as much as $34,000 per year) – Lifestyle and environmental conditions causing illnesses—70 percent of Americans on Prescription Drugs, 1/5 on psychiatric drugs – Rising cost of premiums (Forbes Magazine says 41% increase as result of the ACA in 49 states)

20. Health Care Systems Privatized System: Health care is managed by private companies and each citizen is responsible for paying for coverage (e.g. U.S.) Single-payer System: All citizens are taxed and receive health care from a single fund (e.g., Canada, Australia, Britain, France, Japan, etc.) State-mandated System: All citizens must purchase health insurance through either private companies or the state depending on income (e.g. Massachusetts) Employer mandated coverage: Health care is mandated to be provided by employers (government would cover unemployed). National Medical Savings Accounts: The government allows citizens to take money out of payroll to save for medical expenses tax-free. Which most closely resembles the ACA?

21. Welfare and Poverty Programs Fair Labor Standards Act 2009—Federal Minimum Wage $7.25 Obama reform, $9 dollar minimum wage MA minimum wage?

22. Welfare Checks (Temporary Assistance for Needy Families) TANF was created by the Personal Responsibility and Work Opportunity Act (replacing Aid to Families with Dependent Children) instituted under President Bill Clinton in 1996. There is now a maximum of 60 months of benefits within one's lifetime (some states instituted shorter periods) and there is a component requiring clients to attempt to find employment.

23. Welfare Programs Welfare programs in the US incorporate job training, subsidies (housing/food), free school lunch, and tax credits. The account for about 1% (about.2% actually) of the federal budget. Welfare has many forms: – Direct payments to single parents with young children, the unemployed, the elderly, and disabled – Vouchers to be exchanged for food (WIC/Food Stamps) – Subsidized Vouchers (Section 8 of the U.S. Housing Act of 1937) or Government Housing – Reduce cost or free access to public transportation – Subsidized Medicare Something to remember because welfare states are misleading According to Congressional Research Services, CRS Reports—when talking budget, welfare refers to disbursements under TANF

24. WIC and Food Stamps

25. Public Housing and Section 8 Vouchers

26. Public housing is directly provided by the government (often state government).

27. Section 8 Vouchers subsidize rents in privately owned complexes

28. Federal Subsidies of Transit for the Poor

29. Welfare Statistics These programs are targeted to the 47 million Americans living below the poverty line (about 15.1%). The government says that a family of four with an income higher than $23,550 a year is not poor. Those living below the federal poverty level are nearly twice as likely as middle- and upper-income Americans to rank drug abuse as high. The District of Columbia has the highest poverty rate of 20.7%. New Hampshire is the lowest with 5.6%. 1 in 10 people in Massachusetts is below the poverty line. Percent of welfare recipients (demographics) Whites make (38.8%) of welfare recipients. Percentage- wise, Blacks (39.9%) and Hispanics (15.7%) are disproportionately on welfare. Women and children are the majority of people receiving welfare.

31. Poverty Rate Climbing in America?