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.
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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
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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
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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
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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
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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.
• 2007 HHS Poverty Guidelines
Counting the Poor
• As a percentage of U.S. Population
– 1959 23.5% (39 mil out of 170 mil pop)
– 2003 12.5% (35.9 mil out of 280 mil pop)
• Based on ethnic group in 2004
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Anglos - 8.2%
Asians - 11.3%
Hispanics - 22.5%
Black - 24.4%
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No HS Diploma - 21.5%
No College - 11.3%
Some College - 8.5%
College Graduate - 4.7%
• Based on Education Level
Best and Worst Cases in 2004
• Female
– Age 25 - 34
– No HS Diploma
– 41% below poverty level
• Female
– Age 35 - 44
– College Graduate
– 2.8%
Means Tested Programs
• Aid to Families with Dependent Children
– part of SSAct of 1935
– cash benefits based on specific qualifications
– 1935 500,000
1994 14,400,000
• Welfare Reform Act of 1996
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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
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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
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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.
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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.