1. Grande Finalé Today’s Reading: Schiller Ch. 17-Directions and Prospects Today’s Reading: Schiller Ch. 17-Directions and Prospects

2. Additional Sources RCenter for Budget and Public Policy,“What does the Safety Net Accomplish?” http://www.cbpp.org/pubs/accompli shments.htm http://www.cbpp.org/pubs/accompli shments.htm RAloc Sherman, “Public Benefits: Easing Poverty and Ensuring Medical Coverage,” Center for Budget and Policy Priorities, http://www.cbpp.org/7-19- 05acc.htmhttp://www.cbpp.org/7-19- 05acc.htm RCenter for Budget and Public Policy,“What does the Safety Net Accomplish?” http://www.cbpp.org/pubs/accompli shments.htm http://www.cbpp.org/pubs/accompli shments.htm RAloc Sherman, “Public Benefits: Easing Poverty and Ensuring Medical Coverage,” Center for Budget and Policy Priorities, http://www.cbpp.org/7-19- 05acc.htmhttp://www.cbpp.org/7-19- 05acc.htm

3. Purposes of the Safety Net RTo prevent families and individuals from falling into poverty (or becoming poorer), and losing health insurance coverage as a result of: RJob loss (not quitting) RIllness RDeath of a worker RDisability RDivorce RTo prevent families and individuals from falling into poverty (or becoming poorer), and losing health insurance coverage as a result of: RJob loss (not quitting) RIllness RDeath of a worker RDisability RDivorce RName the unique programs associated with each event? RWhat programs cover all events? RWhat events would you like to add to the list? RName the unique programs associated with each event? RWhat programs cover all events? RWhat events would you like to add to the list?

4. Purposes of the Safety Net RTo assist families and individuals in poverty in meeting their basic needs and and climbing out of poverty RName the unique programs associated with each basic need?

5. Accomplishments of the Safety Net RCuts the number of poor Americans in half! RReduces the number of poor Americans by 27 million R14 million elderly people Rnearly 5 million children RReduces the severity of poverty for those who remain poor by increasing their average disposable income from 29 to 57 percent of the poverty line RCuts the number of poor Americans in half! RReduces the number of poor Americans by 27 million R14 million elderly people Rnearly 5 million children RReduces the severity of poverty for those who remain poor by increasing their average disposable income from 29 to 57 percent of the poverty line

6. Medical Programs RProvides medical coverage for more than 55 million low-income people over the course of a year RMedicaid R70 percent of expenditures go to the elderly and disabled RReduces infant mortality and child deaths RIncrease the likelihood that low-income women receive preventive screenings for cancer RIncreased availability of medication the chronically ill RProvides medical coverage for more than 55 million low-income people over the course of a year RMedicaid R70 percent of expenditures go to the elderly and disabled RReduces infant mortality and child deaths RIncrease the likelihood that low-income women receive preventive screenings for cancer RIncreased availability of medication the chronically ill

7. Food and Nutrition Programs RFood Stamps, WIC, and school meals programs have made severe hunger rare! RReduces low-weight births REach $1 or WIC reduces future expenditures by $3.50 RReduces child anemia RFood Stamps, WIC, and school meals programs have made severe hunger rare! RReduces low-weight births REach $1 or WIC reduces future expenditures by $3.50 RReduces child anemia

8. Accomplishments of the Safety Net, cont. REITC has Rraised the proportion of single mothers who work RLifted almost 3 million children out of poverty REITC has Rraised the proportion of single mothers who work RLifted almost 3 million children out of poverty RSSI has made it possible for millions of elderly and mentally ill persons to live independently

9. Program Effectiveness RHow do we measure the anti-poverty effectiveness of safety-net programs? RCBPP’s definition of being lifted out of poverty: RA family’s disposable income would be below the poverty line if income from a benefit source were not counted RWhich category of programs have the greatest overall antipoverty effectiveness? RSocial insurance or means-tested programs, including tax credits? RCash-transfer or in-kind benefits? RHow do we measure the anti-poverty effectiveness of safety-net programs? RCBPP’s definition of being lifted out of poverty: RA family’s disposable income would be below the poverty line if income from a benefit source were not counted RWhich category of programs have the greatest overall antipoverty effectiveness? RSocial insurance or means-tested programs, including tax credits? RCash-transfer or in-kind benefits?

10. Which subgroups of the poor population are helped most by the safety net? RThe Winners: RElderly RFamilies with children RQualification: Protections have weakened for poorest families RFewer receive cash assistance RMore experience extreme poverty RThe Losers: RChildless, non-elderly adults RImmigrants RThe Winners: RElderly RFamilies with children RQualification: Protections have weakened for poorest families RFewer receive cash assistance RMore experience extreme poverty RThe Losers: RChildless, non-elderly adults RImmigrants

11. The Importance of Programs Varies Across Groups RWhich programs are most effective for each of the winners? RElderly? RSocial Security, SSI, Food Stamps, Medicare, Medicaid RFamilies with Children? REITC, Child Care Subsidies, Medicaid and SCHIP, TANF RWhich programs are most effective for each of the winners? RElderly? RSocial Security, SSI, Food Stamps, Medicare, Medicaid RFamilies with Children? REITC, Child Care Subsidies, Medicaid and SCHIP, TANF

12. Who is left behind? RProcedure: RIdentify those persons and families whose disposable income is less than the appropriate poverty line. RSource: U.S. Census Bureau, Current Population Report, P60-232, The Effect of Taxes and Transfers on Income and Poverty in the United States: 2005, available at http://www.census.gov/prod/2007pubs/p60-232.pdf http://www.census.gov/prod/2007pubs/p60-232.pdf RProcedure: RIdentify those persons and families whose disposable income is less than the appropriate poverty line. RSource: U.S. Census Bureau, Current Population Report, P60-232, The Effect of Taxes and Transfers on Income and Poverty in the United States: 2005, available at http://www.census.gov/prod/2007pubs/p60-232.pdf http://www.census.gov/prod/2007pubs/p60-232.pdf

13. Definition of Disposable Income All cash income + imputed net realized capital gains + imputed rental income + value of food stamps, subsidized housing, school meal programs - federal payroll taxes - federal and state income taxes - property taxes for home owners = disposable income All cash income + imputed net realized capital gains + imputed rental income + value of food stamps, subsidized housing, school meal programs - federal payroll taxes - federal and state income taxes - property taxes for home owners = disposable income

15. Who is Left Behind? Persons in Poverty, 2005 RChildren (less than 18 yr) RHouseholds headed by females RUnrelated individuals RBlacks and Hispanics RHigh School dropouts RChildren (less than 18 yr) RHouseholds headed by females RUnrelated individuals RBlacks and Hispanics RHigh School dropouts

17. Who is Left Behind? Persons in Poverty, 2005 Who Number (millions) Poverty Rate (%) Black children3.834.5 Hispanic Kids (any race) 4.128.3 Black elderly 65 years + 0.122.3 Unrelated Individuals 10.421.1

18. Who is Left Behind? Families in Poverty, 2005 Characteristic of Family Head Number (millions) Poverty Rate (%) Female head, no workers 1.768.7 Black Single Female 3.338.8 Hispanic Single Female 2.039.6 Families of 7+ persons 0.325.4

19. Who is lacking Health Insurance? RBy Number RPeople living in families, Whites, persons age 25 to 64, Citizens, Southerners, Persons with incomes less than $50,000, and persons who did work during the year RBy Uninsured Rate RPersons living in unrelated subfamilies, Hispanics, persons 18 to 24 yrs, Non- citizens, Southerners, persons with less than $25,000, persons who worked only part-time or not at all. RBy Number RPeople living in families, Whites, persons age 25 to 64, Citizens, Southerners, Persons with incomes less than $50,000, and persons who did work during the year RBy Uninsured Rate RPersons living in unrelated subfamilies, Hispanics, persons 18 to 24 yrs, Non- citizens, Southerners, persons with less than $25,000, persons who worked only part-time or not at all.

20. What can we do to help those left behind? Schiller’s Recommendations RSeek full employment -- Expand the number and decent jobs and their availability by: Rselecting that mix of public actions that maximizes impact on the unemployed and poor, while minimizing dislocations, such as inflation, elsewhere; and Rincorporating clear supply-side incentives for employment and training of the poor Families of 7+ persons0.3 25.4especially the EITC). RSeek full employment -- Expand the number and decent jobs and their availability by: Rselecting that mix of public actions that maximizes impact on the unemployed and poor, while minimizing dislocations, such as inflation, elsewhere; and Rincorporating clear supply-side incentives for employment and training of the poor Families of 7+ persons0.3 25.4especially the EITC).

21. Schiller’s Recommendations, cont. REqualize educational opportunities by adding additional resources, not reallocating existing educational resources. RExpose to real-world job situations those with low skills as soon as possible. RAssume responsibility for those who are temporarily or permanently unable to participate in the labor market, providing adequate income support. REqualize educational opportunities by adding additional resources, not reallocating existing educational resources. RExpose to real-world job situations those with low skills as soon as possible. RAssume responsibility for those who are temporarily or permanently unable to participate in the labor market, providing adequate income support.

22. Schiller’s Recommendations, cont. REnforce equal opportunity laws and compensate for the heritage of previous discrimination by providing compensatory education and training, and preferential opportunities. REducate the public to the realities of poverty and discrimination and reflect these realities in public policy. REnforce equal opportunity laws and compensate for the heritage of previous discrimination by providing compensatory education and training, and preferential opportunities. REducate the public to the realities of poverty and discrimination and reflect these realities in public policy.

23. Schiller’s Recommendations, cont. RDo you that Schiller’s prescription would lead to significant reductions in poverty? If not, why not? RWhat else might we do? RDo you that Schiller’s prescription would lead to significant reductions in poverty? If not, why not? RWhat else might we do?

24. Programs Aimed at Low-Income Men RGuiding Principles (from Mead) RCombine help and hassle RHonor men with potential while also challenging them REnhance demands but convey respect RBe supportive and directive Source: Lawrence M. Mead, “Raising Work Levels--Especially among Men, Unpublished manuscript. RGuiding Principles (from Mead) RCombine help and hassle RHonor men with potential while also challenging them REnhance demands but convey respect RBe supportive and directive Source: Lawrence M. Mead, “Raising Work Levels--Especially among Men, Unpublished manuscript.

25. Programs Aimed at Low-Income Men, cont. REITC RRaise benefits but attach an hours threshold to the benefits RJobs-Plus RRent increases were reduced for men in public housing projects if they earned more (few such men) REITC RRaise benefits but attach an hours threshold to the benefits RJobs-Plus RRent increases were reduced for men in public housing projects if they earned more (few such men)

26. Programs Aimed at Low-Income Men, cont. RJob Corps RPlaced disadvantaged youth in a prep- school setting, away from home, under close supervision RNational Guard Youth Challenge Corps R5 months on military base followed by mentoring by Guard members RCenter for Employment Training REmployers commit to hiring participants once they are trained RJob Corps RPlaced disadvantaged youth in a prep- school setting, away from home, under close supervision RNational Guard Youth Challenge Corps R5 months on military base followed by mentoring by Guard members RCenter for Employment Training REmployers commit to hiring participants once they are trained

27. Programs Aimed at Low-Income Men RParents’ Fair Share RLow-income fathers who paid their child support were offered reduced support orders and employment and other services. Violators were jailed RCenter for Employment Opportunities RParolees receive several day of job instruction and are assigned to local work sites for up to 75 days RJob developers help find regular jobs RParents’ Fair Share RLow-income fathers who paid their child support were offered reduced support orders and employment and other services. Violators were jailed RCenter for Employment Opportunities RParolees receive several day of job instruction and are assigned to local work sites for up to 75 days RJob developers help find regular jobs