Edwards, Wattenberg, and Lineberry
Government in America: People, Politics, and Policy
Fourteenth Edition
Chapter 18
Social Welfare Policymaking
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
What Is Social Policy and
Why Is It So Controversial?
Social welfare policies provide
benefits to individuals, through:
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
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Income, Poverty, and
Public Policy
Whos Getting What?
Income distribution: the shares of the
national income earned by various
groups
Income: amount of funds collected
between any two points in time
Wealth: value of assets already owned
One-third of Americas wealth is held
by 1 percent of the population.
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Income, Poverty, and Public
Policy
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Income, Poverty, and
Public Policy
Whos Poor in America?
Poverty Line: considers what a family must
spend for an austere standard of living
36.5 million Americansabout 12.3 percent
were poor in 2006
Many people move in and out of poverty in a
years time.
Feminization of poverty: high rates of
poverty among unmarried women
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Income, Poverty, and
Public 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: burden falls relatively more heavily on
low-income groupsopposite of a progressive tax
Earned Income Tax Credit: negative income tax that
provided income to very poor people in lieu of charging
them income tax
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Income, Poverty, and
Public Policy
What Part Does Government Play?
Government Expenditures
Transfer payments: benefits given by the
government directly to individuals
Some transfer benefits are actual money, such as
social securityentitlements
Other transfer benefits are in kind benefits where
recipients get a benefit without getting actual money,
such as food stampsmeans-tested
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Income, Poverty, and Public
Policy
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Helping the Poor? Social
Policy and Poverty
Welfare as We Knew it
Social Security Act of 1935first major step
by the federal government to help protect
people against absolute poverty
Set up Social Security Program and AFDC, a
national assistance program for poor children
President Johnson declared a war on
poverty and created many new social
welfare programs.
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Helping the Poor? Social
Policy and Poverty
Welfare as we knew it
President Reagan cut welfare benefits and
removed people from benefit rolls.
Conservatives argued that welfare
programs discouraged the poor from solving
their problems.
Attitudes toward welfare became race
coded, the belief that most people on
welfare were African Americans.
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Helping the Poor? Social
Policy and Poverty
Ending Welfare as We Know it: The
Welfare Reforms of 1996
Personal Responsibility and Work Opportunity Act
Each state to receive a fixed amount of money to run its
own welfare programs
People on welfare would have to find work within two
years.
Lifetime limit of five years placed on welfare.
AFDC changed to Temporary Assistance for Needy
Families (TANF)
Welfare rolls declined, even though income of TANF
recipients is still low
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Immigration and Social
Policy
Myths about Immigration
Most are (NOT!) illegal immigrants.
Most are (NOT!) from Mexico.
Most are (NOT!) consuming federal benefits while
(NOT!) avoiding taxes.
Immigration Today
13% of Americans are first-generation immigrants.
Many are admitted because of high skills and
education.
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Immigration and Social
Policy
Immigration Policy and Politics
Immigration has had little support
throughout American history
Illegal immigration is a new issue, as the
distinction between legal and illegal
immigration did not exist for the century of
American history.
Illegal immigration has been a major
though difficultissue in presidential
politics.
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Immigration and Social
Policy
Washington . . .
No general immigration policy until the 20th
Century.
Congress banned Chinese immigration in 1882.
1924: Quota system favors northwestern
Europeans and discriminates against others
(including eastern Europe).
Immigration from Latin America climbs
after World War II.
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Immigration and Social
Policy
Simpson-Mazzoli Act (1986)
Path to citizenship (amnesty) for existing
illegal immigrants.
3 million immigrants become citizens.
Employers forbidden from hiring illegal
immigrants but they cannot challenge
documentation.
Despite several proposals, no major policy
changes since.
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Immigration and Social
Policy
. . . and the States
States are hardest hit by the costs of illegal
immigration.
Proposition 187 (CA) cut off public services
to illegal immigrants; mostly found
unconstitutional.
Some states punish employers by taking
away business licenses.
Many battles over college tuition breaks.
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Living on Borrowed Time:
Social Security
The New Deal, the Elderly, and the
Growth of Social Security
Social Security has grown rapidly since 1935,
adding Medicare in 1965.
Employers and employees contribute to the
Social Security Trust Fundthe bank account
into which Social Security contributions are
deposited and used to pay out eligible
recipients.
The Trust Fund will soon be in the red as the ratio of
workers to beneficiaries is narrowing.
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Living on Borrowed Time:
Social Security
The Future of Social Security
The problem: number of Social Security
contributors (workers) is growing slowly,
while number of recipients (retired) is
growing rapidly
At some timecurrently 2038payouts will
exceed income.
Solutions of cutting benefits or raising taxes
are hard choices.
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Living on Borrowed Time:
Social Security
How George W. Bush Tried and Failed to
Reform Social Security
Bush proposed diverting 2 percent of social security
contributions to private retirement fundsprivate
savings accounts
Problem: social security trust fund would run out of
money very quickly as people put their money into
private savings accountor, government would
have to borrow trillions of dollars
Social security reform failed.
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Living on Borrowed Time:
Social Security
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 Europe) have
worked to reform their welfare programs, as
their programs are in trouble, too.
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Understanding Social
Welfare Policy
Social Welfare Policy and the Scope of
Government
The growth of government has been driven by
the growth of social welfare policies, which grow
generation by generation.
Democracy and Social Welfare
The U.S. has the smallest social welfare system.
There is considerable unequal political
participation by those that use the programs.
Elderly are well-organized and influential; poor are not
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
Summary
Social welfare policies include
entitlement and means-tested
programs.
Entitlement programs affect social
welfare status but are expensive.
Welfare has been reformed.
Is Social Security next?
Copyright 2009 Pearson Education, Inc. Publishing as Longman.
