SOCIAL WELFARE SOCIAL WELFARE PROGRAMS Two types Majoritarian: Social Security and Medicare NO MEANS TEST Client based: Medicaid, Food Stamps, AFDC MEANS TESTED Different perceptions about programs Client politics depends on the beneficiaries being thought of as legitimate

SOCIAL WELFARE SOCIAL WELFARE IN THE U.S. Three distinctive features Restrictive view Slower to embrace welfare state States/private enterprises play large role

SOCIAL WELFARE MAJORITARIAN WELFARE PROGRAMS Before 1929… Things change during Great Depression Some question Constitutionality of Federal Welfare FDR created two types of programs Insurance program (majoritarian) Assistance program (client based) Funds from taxes and administered by states SOCIAL SECURITY ACT (1935) WAR ON POVERTY - “Economic Opportunity Act” – 1964 1965 – Medicare: aged, eligible – Social Security, hospital expenses, later – doctor’s bills Also in 1965 – Medicaid: means tested (for the poor)

SOCIAL WELFARE CLIENT WELFARE PROGRAMS: AID TO FAMILIES WITH DEPENDENT CHILDREN (AFDC) Part of Social Security Act (1935) Federal aid to existing state programs States define “need”, benefit levels, and administer program Certain mandates attached (job training programs, childcare programs for working AFDC parents, identify children’s fathers Additional programs that were added on over the years for AFDC recipients** Food stamps, earned income credit (cash grant to poor parents who are working), free school meals, housing assistance **while all this was happening public opinion going against AFDC

SOCIAL WELFARE WHY DID PUBLIC OPINION TURN AGAINST AFDC (welfare)? States dislike federal regulations Public thought it contributed to break-up of families Some felt it encouraged laziness In 1970, about half of mothers on AFDC were there because their husband had died or divorced them By 1994, only about ¼ of AFDC mothers were widowed or divorced Over1/2 had never been married at all Almost 2/3 of women on AFDC had been on it for 8 years or more BOTTOM LINE WITH CLIENT-POLITICS Benefits relatively small group Public at large pays Proposals will pass if cost is not perceived to be great and if client is thought to be deserving

SOCIAL WELFARE MAJORITARIAN PROGRAM OF SOCIAL SECURITY RETAINS SUPPORT DESPITE PROBLEMS Recipients viewed as deserving 1950 – 14 workers for 1 retired 1960 – 5 workers for 1 retired by 1975 – 3 workers for 1 retired Today? Solvency? At same time healthcare costs have increased dramatically

SOCIAL WELFARE TOWARD A NEW WELFARE POLITICS Biggest problem facing majoritarian welfare programs is their COST Biggest problem facing client-based welfare programs is their LEGITIMACY: who should benefit and how (in what form)

SOCIAL WELFARE How can the COST ISSUE of Social Security be handled?? Raise taxes?? Reduce benefits?? Raise age - collect?? Privatization?? (Bush tried – what happened?)

SOCIAL WELFARE PUBLIC SUPPORT FOR A.F.D.C.?? 104TH Congress turned AFDC back to the state From categorical grant to block grant (T.A.N.F.) Personal Responsibility and Work Opportunity Reconciliation Act (1996) State run Welfare programs Temporary Assistance to Needy Families (TANF) Find work (limit – 2 years) Denies food stamps – legal aliens Denies TANF – illegal aliens 5 year lifetime cap Identify fathers of TANF will be reduced Initiate”Dead-beat-Dads” program Mothers under 18 must live with parent and attend school to receive TANF

SOCIAL WELFARE ATTITUDES TOWARDS POVERTY AND WELFARE See text Poor – Non-poor (1985) Black – White (1996) POVERTY: PUBLIC PERCEPTION AND REALITY (text) WHAT KIND OF SOCIAL WELFARE SHOULD THE U.S. PROVIDE TO: HOMELESS IMMIGRANTS

SOCIAL WELFARE AID TO HOMELESS Lots of disagreement about seriousness of problem Who is to blame? What government responsibility should be? AID TO IMMIGRANTS Early 1990s, estimated 1.25 million immigrants entered country each year Most legally Unknown fraction illegally Not since the early decades of this century has the U.S. experienced anything like this level of immigration New immigrants from Mexico, China, and Haiti 90% of today’s illegal immigrants are concentrated in 6 states: Ca.,Fl.,Il, NJ,NY,Tx DISPUTED EFFECTS ON ECONOMY