Social welfare policies

1
Social welfare policies

• Monetary policy govt manipulation of the money
  supply
• Fiscal policy use of taxes, spending and
  borrowing to influence the economy

2
Economic theories used by policymakers

• Monetarism supply of money is key to nations
  economic health
• Keynesian theory government spending and
  deficits can stimulate slow economy
• Supply side economics fiscal policy should
  stimulate SUPPLY of goods, mainly through
  lowering taxes

3
Social welfare policies

• TAXES can be progressive, proportional or
  regressive
• TRANSFER PROGRAMS benefits given directly to
  individuals by government (e.g. food stamps,
  Social Security)

4
SOCIAL PROGRAMS

• SOCIAL SECURITY ACT 1935
• Creates Social Security and AFDC
• AFDC (Aid to families with dependent children)
• PRWORA 1996 (Personal responsibility and work
  opportunity reconciliation act) welfare
  reform

5
Social policy in US versus other industrialized
democracies

• Generosity
• Tax levels
• Why difference?