1. SOCIAL WELFARE POLICYMAKING

2. Social Welfare Policies Provide benefits to individuals Based on either Entitlement (regardless of need; Social Security/Medicare) or Means- Tested programs (based on need; Food Stamps or Medicaid)

3. Means-Tested Programs Controversial due to philosophical differences Deserving Poor vs. Undeserving Poor Social Darwinism vs. Cyclical / Structural Poverty

5. Income Distribution: describes how the national income is divided

6. Relative Deprivation: perception by an individual that they are not doing well economically in comparison to others Income: amount of money collected between two points in time Wealth: Value of all assets owned (stocks, bonds, bank accounts, cars, houses, etc.) – 1/3 of wealth held by 1%, – 1/3 by next 9%, – remaining 1/3 by the other 90%

7. Poverty Line Income threshold below which people are considered poor 1 person = 11,170 4 persons = 23,050 43.6 million, about 14.3%, officially poor in 2009 ‘Feminization of Poverty’: increasing concentration of poverty among women

8. Gov’t.’s Affect on Income Government can affect income via two ways: – Taxation & Expenditures

9. TAXATION Progressive Tax: bigger % from rich Proportional Tax: same % from all Regressive Tax: bigger % from poor Earned Income Tax Credit (EITC): refundable credit for working people who earn low incomes

10. EXPENDITURES Transfer Payments: benefits directly to individuals – cash, food stamps, low % loans

11. Evolution of “Welfare State” 1789-1935: parents care for children who take care of parents as they age 1935: Social Security Act created as part of FDR’s New Deal – $ for retired, disabled – Aid for Families with Dependent Children (AFDC) 1964: LBJ’s “War on Poverty” – Medicare/Medicaid

12. 1980’s: De-funding of social welfare programs under Reagan 1996: Welfare Reform Act, WJ Clinton – Must find work within 2 years – Total of 5 years welfare – AFDC changes to TANF (“Temporary Assistance for Needy Families”)

13. Political Conflict Social Darwinism/dependency (“Deserving Poor”) vs. Cyclical/Structural Poverty (“Undeserving Poor”)

14. Americans tend to see welfare recipients as overwhelmingly African-American, lazy, and undeserving Feelings on race affect feelings on welfare Media portrays recipients as minority when majority are White

16. Source: Census Bureau - Table H-3, 2010Census Bureau

17. What percent in taxes does each pay after paying for basic necessities like food and shelter, rather than total income?

18. If you subtract this $2,000 a month or $24,000 per year from the various quintiles' incomes, the following pre- tax disposable incomes result:

19. And here are the actual average taxes paid by quintile:

20. And so, here are the tax percentages that each quintile actually pays as a percent of their true disposable incomes, assuming everyone needs at least $2,000 a month just to get by:

21. SOCIAL SECURITY Trust Fund: $ in to pay current recipients 12.4% tax up to $102,000 6.2% paid by employee 6.2% paid by employer

22. INSOLVENCY Life expectancy: 1935 = 78 Baby Boom = fewer workers-to-recipients ratio Fund has been ‘raided’ over the years to pay for other programs

23. SOLUTION(S)? Increase Payroll Taxes Decrease benefits for recipients Increase age at which benefits are recived Means-Testing recipients

24. Efficacy of Groups re: Social Welfare Policymaking Elderly: well-organized with a high amount of resources = effective Poor: vote less, less money, fewer organizations = less effective