The Social Welfare Policy
What is Social Welfare?

A means by which the government
provides assistance to those suffering
from hardships
 Ex: old age, disability, unemployment & poverty
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Controversial
Poverty
Rates
◦ Liberals- believe government has an
obligation to provide for social welfare to
help the needy
◦ Conservatives- believe social-welfare
programs are encroachments on individual
liberties & responsibilities
History of S.W. in the U.S.

Began during the New Deal era
◦ The Depression led citizens to want help from the
government
 Social Security Act- first step
 Includes retirement benefits & Medicare

Extended during LBJ’s Great Society
◦ Created Medicare, school aid, housing, & job training

Reduction of benefits in recent history
◦ 1980’s- Reagan reduced benefits & removed people from
eligibility
◦ 1990’s- Clinton limited how long a person could receive
benefits & gave money to the states to run their own
welfare programs
◦ 1996- TANF (Temporary Assistance for Needy Families)
replaced AFDC (Aid to Families with Dependents)
Two Kinds of
S.W. Programs Today

Social Insurance Programs (Majoritarian)
◦ National insurance programs that employers &
employees pay into through taxes
 Everyone pays/everyone benefits
 Therefore, viewed as “earned” & little public debate over
one’s “right” to Social Security

Public Assistance Programs (Client)
◦ Recipients are not required to pay into the system to
collect benefits
 Everyone pays/some benefit
 Are a result of condition & the government’s responsibility
to help the needy
 Not perceived as “earned” & often viewed as a “handout
to the lazy”
 DEBATE: should recipients be drug tested?!?
Social Security

An entitlement program to the aged
mandated by law
◦ Created as part of FDR’s New Deal
◦ The government must pay benefits to all
people who meet the requirements
 Everyone pays, everyone receives
◦ Accounts for the largest expenditure in the
budget
 Payees=
Receivees=
Medical Insurance

Medicare
◦
◦
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
Provides healthcare assistance to people over the age of 65
Funded by a payroll tax by working Americans
In 2006, a prescription drug component was added
The high cost of health care has nearly bankrupted Medicare
Medicaid
◦ Provides medical and health-related services for low income
families and individuals
 Joint funded by the states & federal government
 Managed by the states

The Affordable Care Act
◦ Passed in 2010 in an effort to decrease the # of uninsured
Americans and lower the cost of health insurance
 Provisions of the Act:

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Tax credits are given to small businesses so they can provide coverage to employees
Americans with pre-existing conditions cannot be denied coverage
Americans will be required to carry health insurance or will pay a tax penalty
Health insurance “market places” will offer plans at lower rates
Implemented January, 2014
Reforming Majoritarian Programs
Social Security
◦ Not enough people paying into Social Security
◦ Three solutions
 Raise the retirement age, freeze the size of retirement
benefits, raise Social Security taxes
 Privatize Social Security
 Combine first two methods and allow individual investment
in mutual funds
 SS Reform
Medicare
◦ Problems: huge costs and inefficient
◦ Possible solutions
 Get rid of Medicare and have doctors and hospitals work
for government
 Elderly take Medicare money and buy health insurance
Additional Welfare Programs

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Unemployment Insurance
TANF
 TANF- a block grant that limits recipients to a
maximum of 5 years assistance
 Also requires recipients to work, receive
vocational training , or participate in community
service
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Food stamps
School Lunches
College Financial Aid
Housing
Review Questions
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What role does federalism play in the implementation
of social welfare policy?
Why is it so difficult to pass social welfare policy?
Why are entitlement programs always a threat to the
budget-making process?
Describe the major elements of the American system,
including Social Security, Medicare, and TANF
programs.
Explain why some welfare policies are considered
majoritarian politics and others client politics. Give
examples and indicate the political consequences of
each.
Propose recommendations to deal with the rising
costs of Social Security.