Social Welfare Policymaking

1
Social Welfare Policymaking

• This is the butter side of the guns and
  butter argument!

2
Learning Objectives

• Examine the related concepts of income
  distribution and relative deprivation.
• Summarize how liberals and conservatives disagree
  about the conduct and impact of public assistance
  programs.
• Identify the three major tasks of taxes and show
  how each can affect citizens income.
• Summarize the effects that social welfare
  programs have had on the day-to-day living
  conditions of groups of Americans, such as the
  poor, the young, and the elderly.
• Differentiate between entitlement programs and
  means-tested programs.
• Indicate the role that entitlements play in the
  U.S. budgetary system.

3
Learning Objectives - 2

• Identify the major American social welfare
  programs and the groups that benefit from them.
• Contrast social welfare policy in the US with
  that of other major Western democracies.
• Trace the evolution of Americas social welfare
  programs, with emphasis on the role of the Great
  Depression.
• Compare and contrast the views of recent
  president of both political parties toward social
  welfare expenditures.
• Explain why policy-making in the United States is
  very incremental in nature.

4
The Social Welfare Debate

• Two main types
• Entitlement programs Government benefits that
  certain qualified individuals are entitled to by
  law, regardless of need.
• Means-tested programs Government programs only
  available to individuals below a poverty line.
• Deserving vs. Undeserving poor

5
Income, Poverty, andPublic Policy

• Whos Getting What?
• Income amount of funds collected between any two
  points in time.
• Wealth amount of funds already owned.

6
Income, Poverty, andPublic Policy

• Whos Poor in America?
• Poverty Line considers what a family must spend
  for an austere standard of living.
• In 1999 a family of three had a poverty line of
  13,470.
• Many people move in and out of poverty in a
  years time.
• High rates of poverty among unmarried women

7
Income, Poverty, andPublic Policy
8
Income, Poverty, andPublic Policy

• What Part Does Government Play?
• Taxation.
• Progressive tax people with higher incomes pay a
  greater share.
• Proportional tax all people pay the same share
  of their income.
• Regressive tax opposite of a progressive tax
• Earned Income Tax Credit negative income tax
  that provided income to very poor people.

9
Income, Poverty, andPublic Policy

• What Part Does Government Play?
• Government Expenditures.
• Transfer payments benefits given by the
  government directly to individuals.
• Some transfer benefits are actual money.
• Other transfer benefits are in kind benefits
  where recipients get a benefit without getting
  actual money.
• Some are entitlement programs, others are
  means-tested.

10
The Evolution of American Social Welfare Programs

• The New Deal and the Elderly
• The Great Depression led many citizens to want
  the government to help protect against economic
  downturns and causes of poverty beyond their
  control.
• Social Security Act of 1935 was the first major
  step by the federal government to help protect
  people against absolute poverty.

11
The Evolution of American Social Welfare Programs

• President Johnson and the Great Society
• Johnson declared a war on poverty and created
  many new programs and it was his leadership that
  made the difference.
• Medicare, school-aid programs and anti-poverty
  programs were some examples.
• Other programs were designed to provide training
  and jobs, not just transfer payments.

12
The Evolution of American Social Welfare Programs

• President Reagan and the Limits to the Great
  Society
• Reagan (like Johnson) played a lead role in
  getting attention on benefit programs.
• Many programs had benefits reduced, and people
  were removed from benefit rolls.
• Democrats worked to lessen the cut of the
  benefits to try and protect the truly poor.

13
The Evolution of American Social Welfare Programs

• Welfare Reform in 1990s
• Clinton (a Democrat) was able to pass a more
  significant welfare reform law than his
  Republican predecessors.
• The new program put limits on the amount of time
  a person could receive benefits.
• It also gave the states money to run their own
  welfare programs.

14
The Future of Social Welfare Policy

• The Entitlement Programs Living on Borrowed
  Time?
• Long-term sustainability of entitlement programs
  is hotly debated.
• What can be done about Social Security?
• Cut benefits?
• Raise tax rates?
• Allow people to invest on their own?

15
The Future of Social Welfare Policy

• The Means-Tested Programs Do They Work?
• Programs for the poor are not as popular as
  programs for the elderly.
• The percentage of people in poverty has not
  changed significantly since the 1960s.
• But there is little agreement on if the programs
  help people in poverty or not.

16
The Future of Social Welfare Policy

• Social Welfare Policy Elsewhere
• Many industrialized nations are more generous
  than the U.S.
• But the tax rates are higher in those countries
  than in the U.S.
• Other countries (especially European) have worked
  to reform their welfare programs.

17
Understanding Social Welfare Policy

• Democracy and Social Welfare
• The U.S. has the smallest welfare system.
• There is considerable unequal political
  participation by those that use the programs.
• Social Welfare Policy and the Scope of Government
• When social welfare costs go up, the size of
  government goes up.
• What goes up is often difficult to bring down.

18
Internet Resources

• Census Bureau poverty reports
• American Public Welfare Association
• Heritage Foundation
• Social Security Administration
• Green Book