Chapter 19 Social Welfare in the U.S.

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Chapter 19Social Welfare in the U.S.

• An Overview of Programs

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Pop Quiz 19

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Introduction 2 kinds of welfare programs today

• Majoritarian Examples include Social Security
  and Medicare
• Everyone pays through payroll taxes, everyone
  benefits
• Cost are skyrocketing due to aging Boomers
• Programs are very difficult to reform
• Client Examples include TANF, food stamps, and
  Medicaid
• Issue today is legitimacypublic opinion a must!
• BIGGEST DIFFERENCE IN THE TWO??
• Majoritarian not means tested, Client programs
  are!
• Both are examples of entitlements. 

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Factors Shaping Social Welfare in the U.S.

• Who is entitled? (Guaranteed by right or legis.)
• Americans have a much more restrictive view
• Fair share view doesnt mesh with self-reliance
• Late arrival of welfare in the U.S.
• By 1935s Social Security Act, Europe was 3
  decades in!
• For US, it took Great Depression to reform
• Influence of federalism
• States were testing groundsno federal
  involvement until 1930s (By 1935, 35 states had
  old age pensions)
• Private entities often administered
• 1996 Welfare Reform Act created charitable
  choice, expanded by George W. Bush in 2001 to
  include faith-based organizations. Today, 1.2
  billion are awarded to these.

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Majoritarian Welfare History

• 1929Great Depression
• 1932FDR Dem. Congress elected
• Quick Fix
• Money to bail out charities local governments
• Creation of public works job opportunities
• Long term Fix
• Cabinet Committee on Economic Security studied
  European models
• Social Security Act of 1935
• 1964LBJ Dem. Ways Means Comm.
• Draft of Medicareapplies to hospitalization
• Ways Means add-ons include Medicaid Medicare
  doctor visits
• Outline parts A, B, C (The newest part D was
  created by Medicare Modernization Act of 2003)

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Social Security Reform!

• Social Security
• Idea Provide a source of retirement income
  through a payroll tax (OASDI Old Age, Survivors
  Disabled Insurance is paid by both employees
  and employers). EMPLOYEES AND EMPLOYERS ARE THE
  PRIMARY SOURCES OF REVENUE FOR THE ENTITLEMENT!
• Problem
• As Boomers age, the amount of people paying into
  social security is not enough to support
  retirees.
• Solutions
• Raise the retirement age to 68-70
• Reduce or freeze amounts of benefits
• Raise SS taxes
• Privatize Social Security through stock market
• Combination of some of these

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Medicare Reform!

• Medicare
• Idea Everyone who is 65 or older is covered by
  hospital insurance and medical insurance.
• Problems
• A lot of people use medical services when they
  dont really need them
• Some doctors and hospitals overcharge the
  government for their services
• Program is bankrupting the social security system
• Solutions
• Have doctors work for the government
• Allow elderly to take funds to buy private
  insurance or HMOs (Ryan Plan)

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Client Welfare Programs

• All client programs are means tested and come out
  of general government revenues.
• Aid to Families with Dependent Children (AFDC)
• Created in response to the Great Depression
• Allowed states to define what constituted as a
  need
• Led to creation of food stamps, housing
  assistance, etc.
• Abolished in 1996Replaced with Temporary
  Assistance for Needy Families (TANF) WHY?
• Program lost public support
• Recipients no longer deserving (Living off the
  system)
• Encouraged out-of-wedlock births

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Changes in Welfare Programs

• Welfare Reform Act of 1996 (Personal
  Responsibility and Work Opportunity
  Reconciliation Act) brought many changes
• Abolished AFDC, replaced with TANF
• Must participate in job training
• Lifetime limits
• No increases for additional children
• Drastically reduced the number on welfare from
  1996-2006 by 62. Even the Great Recession did
  not see a significant rise in the number of
  recipients.

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Other Client Welfare Programs

• SNAP (Supplemental Nutrition Assistance Programs)
  led to the use of EBT cards in place of
  traditional stamps to help families buy food.
• Supplemental Security Income (SSI) cash payments
  to blind, disabled or aged whose incomes fall
  below a determined amount.
• Medicaid is an insurance program that pays the
  medical expenses of persons on government
  assistance programs like TANF, SNAP or SSI.
• EITC Earned Income Tax Credit allows working
  families with children to receive money via a tax
  refund from the government if their income is
  below a certain level.

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Results of TANF Reforms
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Other Social Welfare Issues

• Patient Protection and Affordable Care
  Act (PPACA), commonly called the Affordable Care
  Act (ACA) or "ObamaCare"
• Subsidies available to those who dont have
  insurance but do not qualify for Medicaid.
• Penalizes those who can but dont buy health
  insurance.
• Creates buyers pools to reduce the overall cost
  of insurance.
•  In National Federation of Independent Business
  v. Sebelius, decided in 2012, the SCOTUS ruled on
  a 54 vote that the individual mandate is
  constitutional under Congress's taxation powers,
  although the law could not have been upheld under
  Congress's regulatory power under the Commerce
  Clause. 
• Remains extremely controversial.

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Assignment

• Read blue tile 1 and the assignment in tile 2,
  especially study the insets and visuals in the
  chapter.
• Be working on your legislation templates.
• Final AP Gov. lecture is tomorrow!