SSE – 110
Introduction to Social
Welfare and Social Work
Chapter 4
Poverty and Public Welfare
The Problem
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In 2008 over 36 million people, about 12% of our
population, were living below the poverty line.
Today a family of (4) four is living in poverty if the
household income is less than about $21,200.
The rich and the poor. Wealth perpetuates the rich
and Poverty perpetuates the poor
A Brief History of Our Response to the Poor
 See pages 115 – 118 a recapitulation of a discussion
from chapter one.
The Rich and the Poor
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See exhibit 4.2 NBA player and Bill Gates
In the US the wealthiest 1% of all households hold
about 40% of all personal wealth.
An estimated 30 million Americans are hungry due to
the lack of financial resources, at least some period of
time each month.
Defining Poverty is a Policy Problem
 We do not agree on how to define poverty.
 In 2008, the government set the poverty line at
$18,810 for a family of four (4).
Who Are the Poor?
One-Parent Families
 Children
 The Elderly
 Large Families
 People of Color (more whites live in poverty)
 Education
 Employment
 Place of Residence
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Causes of poverty (see pg. 123)
The Function of Poverty
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Poverty can be passed on from generation to generation.
See figure 4.1 – Cycle of Poverty.
See page 125 – Functions of Poverty.
Our Government has the resources to eliminate poverty
– but not the will.
Social Insurance Programs
 These are a recapitulation of what was discussed in
chapter one (1).
The Function of Poverty
Public Assistance Programs
 SSI
 GA
 Medicaid
 Food Stamps
 Housing Assistance
 TANF
Proposed Welfare Alternatives
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Offer family allowances (pay each family a set amount
of money).
President Obama’s Proposal to Combat Poverty
– Reduce income inequality between the rich and poor by
raising income taxes on wealthier Americans, giving a $1,000
tax credit to low income and middle-class parents (which will
lower the income taxes they pay) and eliminating income
taxes for older Adults making less than $50,000
– Create job by hiring low-income Americans to work on
improving our nation’s infrastructure (such as improving
bridges and roads).
– Raise the minimum wage to $9.50 an hour by 2011 and index
it to inflation