Chapter 15 Domestic Policy Areas of Domestic Policies Social Welfare Policy Development of Social Welfare Policy Social Insurance Programs Public Policy Protecting the Poor Environmental Policy

Domestic Public Policy Domestic policy - government policy decisions on matters affecting individuals within the political system. –Economic (Usually overlaps with all others) –Education –Welfare –Criminal Justice –Social Mores –Environment

Social Welfare Social Welfare Policy - government programs directed specifically toward promoting the well being of individuals and families. Changing social/economic environment –Agricultural/rural to Industrial/urban –Increasing population (especially the elderly) –Social heterogeneity –Self interest versus national interest

Areas of Social Welfare Social Insurance –Social security –Medicare –Unemployment Compensation Education Public Aid –AFDC –Medicaid –Food Stamps TANF (Temporary Aid to Needy Families)

Development of Social Welfare Policy Era of State Responsibilities –small federal bureaucracy dedicated to foreign issues and gradual national domestic issues –Social Darwinism - limited government control in free market system (laissez faire) Progressive Era –Urban/industrial movement at turn of 20th century restricting corporations and improving public services. –New civil service system, anti-trust legislation, consumer safety protection concerns –Most social reform efforts continues to be a state responsibility

Development of Social Welfare Policy The New Deal –Hoover and Laissez Faire Policy –Collapse of Stock Market and economic depression –Roosevelt elected and calls special session of legislature for 100 days –15 new social programs created +FDIC +Social Security (AFDC) +Unemployment Compensation

Development of Social Welfare Policy The Great Society –Kennedy/Johnson Programs –1964 +Civil Rights Act +Food Stamp Act +Equal Opportunity Act +Elementary and Secondary Education Act –1965 +Voting Rights Act +Medicare +Medicaid –1972 +Supplemental Security Income

Social Insurance Programs Social Security Created in 1935 Income/business tax based Retirement Annuity Disability Insurance Dependent Protections Surplus Funding Deficit Funding (2018) Cost $615,000,000,000 in FY 2007

Social Insurance Programs Medicare Created in 1965 Income tax + premium based Medical Insurance for those 65 and over Part A - hospital insurance (in patient) Part B - supplemental medical insurance Prescription Drug benefits Rapidly rising health care costs Cost - $390,000,000,000 in FY 2007

Social Insurance Programs Unemployment Compensation Temporary financial assistance to the unemployed State and federal tax on employers Cash benefits –26 weeks –13 additional weeks in certain areas Cost - $47,000,000,000 in FY 2007

Public Policy Protecting the Poor Means Tested Programs - cash or in-kind benefits to individuals who qualify based on income level. Poverty threshold - income level set by Department of HHS/Agriculture based on amount of money spent on food HHS Poverty Guidelines

Counting the Poor As a percentage of U.S. Population – % (39 mil out of 170 mil pop) – % (35.9 mil out of 280 mil pop) Based on ethnic group in 2004 –Anglos - 8.2% –Asians % –Hispanics % –Black % Based on Education Level –No HS Diploma % –No College % –Some College - 8.5% –College Graduate - 4.7%

Best and Worst Cases in 2004 Female –Age –No HS Diploma –41% below poverty level Female –Age –College Graduate –2.8%

Means Tested Programs Aid to Families with Dependent Children –part of SSAct of 1935 –cash benefits based on specific qualifications – , ,400,000 Welfare Reform Act of 1996 –Temporary Aid to Needy Families –24 consecutive months 60 months lifetime –More training less cash assistance –Joint program differs by state –Family of 3 Alabama $164/mo. Alaska $923/mo. –2007 4,500,000 cases worked –$16.5 Billion in 2007

Means Tested Programs Supplemental Security Income –Minimum income for aged, blind and disabled Federal program Guaranteed income for disabled, blind, aged –$623/mo child/individual –$934/mo couple 6,700,000 participants Cost $37,000,000,000 in FY 2007

Means Tested Programs Medicaid Joint medical insurance Medical care not cash benefit 49,000,000 participants in 2006 Cost $205,000,000,000 in FY 2007

Means Tested Programs Food Stamps Joint program for food purchases Coupons issued not cash 17,000,000 participants in 2001 –peaked at 22,000,000 in 1981 Cost $47,000,000,000 in FY 2007

Environmental Policy Began during Great Society Era Includes bureaucratic agencies actions, executive orders, legislative acts, special interest efforts and dedicated political parties. –EPA –Endangered Species Act –Clean Air Act –Sierra Club and Greenpeace –Green Party

Environmental Policy Process Risk Assessment - scientific estimate of potential damage to people and environment due to smoking, pollution, toxic waste and global warming. Risk Management - decision making process designed to reduce or contain risks identified in assessment process.