1. 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

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

3. 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)

4. 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

5. 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

6. 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 cost have increased dramatically

7. 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)

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

9. 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

10. 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

11. SOCIAL WELFARE AID TO HOMELESS AID TO IMMIGRANTS 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