Domestic Policy Domestic Policy
Government Policies and Individual Welfare The promotion of social and economic equality through government policies is controversial because it requires government to redistribute income, and thus compromises freedom in pursuit of equality.
Government Policies and Individual Welfare (Cont’d) Almost every modern nation can be characterized as a welfare statethe provider and protector of individual well-being through economic and social programs. Social welfare programs are government programs that provide the minimum living standards necessary for all citizens.
Government Policies and Individual Welfare (Cont’d) In recent history, social welfare expenditures have increased steadily in order to provide minimum living standards for all citizens.
Social Security Social security is a social insurance program that provides economic assistance to persons faced with unemployment, disability, or old age. It is financed by taxes on employers and employees. Unemployment and distress caused by the Depression led to the Social Security Act of 1935.
Social Security (Cont’d) Revenues for old-age retirement security go into their own trust fund. Full benefits begin at age sixty-five for people born before 1938 and age sixty-seven for those born after that date. The solvency of the program faces challenges in the future, prompting reforms.
Public Assistance Public assistance (what is commonly meant by the term welfare) is government aid to individuals who can demonstrate a need for that aid. It is directed toward those who lack the ability or resources to provide for themselves or their family.
Assignment Complete page 558-559 numbers 1-21 in the Civics Book. Write the questions and/or definitions on 1-10. Turn in for 100 points.
Public Assistance (Cont’d) There are four types of categorical assistance programs under the Social Security Act. These programs have become entitlements (benefits to which everyone has a legal right and the government cannot deny).
Public Assistance (Cont’d) Four types of categorical assistance programs Old age assistance for the needy elderly Aid to the needy blind Aid to needy families with dependent children Aid to the totally and permanently disabled
Public Assistance (Cont’d) Until 1996, the national government distributed funds to states in proportion to the number of people in each state with incomes below the federally-defined poverty level or threshold.
Figure 19.2: Families on Welfare, 1950-2001
Public Assistance (Cont’d) The feminization of poverty refers to the growing percentage of all poor Americans that are women or the dependents of women.
PCW 19.1: The Feminization of Poverty
Public Assistance (Cont’d) In 1996 Congress passed, and President Clinton signed, a welfare reform bill known as the Temporary Assistance for Needy Families Act that altered sixty-one years of national welfare policy.
Health Care The United States is the only major industrialized nation without a universal health-care system. The U.S. system is a patchwork of programs designed to cover different segments of the population, but not all citizens.
Health Care (Cont’d) Government programs to provide health care include: Medicare, primarily for the elderly Medicaid, for the qualifying poor State Children’s Health Insurance Program (SCHIP), for children in needy families.
Health Care (Cont’d) When considering cost and access, roughly 15.2% of all Americans are uninsured. Several million Americans living in rural areas are unable to receive health care because they do not have easy access to doctors or hospitals.
Health Care (Cont’d) Health care costs continue to escalate rapidly, with prescription drug costs leading the way. Reforming health care would actually increase the current amount spent in the U.S. as well as restricting the range of procedures and providers available to patients.
Health Care (Cont’d) Medicare is a health-insurance program for all people aged sixty-five and older and a few individuals who are disabled or who suffer from end-stage renal disease. Part A of the Medicare program pays for care in facilities. Part B of the Medicare program pays for doctor’s services and outpatient hospital care. Participants of Part B pay a premium of twenty-five percent with the remaining costs paid for by the government.
Health Care (Cont’d) The most recent change in Medicare is the Medicare and Prescription Drug Modernization Act which created a new prescription drug coverage option.
Health Care (Cont’d) Medicaid is a need-based comprehensive medical and hospitalization program. The State Children’s Health Insurance Program is a health-insurance program designed to provide children in families with low incomes access to medical care.
Assignment Explain how the changes in the health care and tax reform may effect you within the next 10 years. How might you be effected if things do not change. Write one page in paragraph format. 50 pts.
Education Americans have traditionally believed that education could help individuals attain social and economic equality. The Elementary and Secondary Education Act of 1965 was the first time the government provided direct aid to local school districts.
Education (Cont’d) Education is linked to national security and prosperity. Education reform is difficult, thoughparticularly on the national level—as evidenced by the passage and implementation of the No Child Left Behind Act.
Benefits and Fairness How can the government provide benefits in a way that is fair? The national government provides two types of benefits: means tested and non-means tested. Some people argue that non-means-tested benefits are not fair: some people need benefits, and others do not. Transforming some non–means-tested benefits into means-tested benefits has allure during times of budget deficits.