SOCIAL WELFARE
SOCIAL WELFARE PROGRAMS
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Two types
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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
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SOCIAL WELFARE
SOCIAL WELFARE IN THE U.S.

Three distinctive features
1.
Restrictive view
2.
Slower to embrace welfare state
3.
States/private enterprises play large role
SOCIAL WELFARE
MAJORITARIAN WELFARE PROGRAMS

Before 1929…
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Things change during Great Depression

Some question Constitutionality of Federal Welfare

FDR created two types of programs
1.
Insurance program (majoritarian)
2.
Assistance program (client based)
Funds from taxes and administered by states
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SOCIAL SECURITY ACT (1935)
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WAR ON POVERTY - “Economic Opportunity Act” – 1964
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1965 – Medicare: aged, eligible – Social Security, hospital
expenses, later – doctor’s bills
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Also in 1965 – Medicaid: means tested (for the poor)
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
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
SOCIAL WELFARE
MAJORITARIAN PROGRAM OF SOCIAL
SECURITY RETAINS SUPPORT DESPITE
PROBLEMS

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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 costs have increased
dramatically
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)
SOCIAL WELFARE

How can the COST ISSUE of Social
Security be handled??
Raise taxes??
 Reduce benefits??
 Raise age - collect??
 Privatization?? (Bush tried – what
happened?)

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
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Mothers under 18 must live with parent and attend school to receive
TANF
SOCIAL WELFARE
ATTITUDES TOWARDS POVERTY AND WELFARE

See text
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Poor – Non-poor (1985)
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Black – White (1996)
POVERTY: PUBLIC PERCEPTION AND REALITY (text)
WHAT KIND OF SOCIAL WELFARE SHOULD THE U.S. PROVIDE
TO:
1.
HOMELESS
2.
IMMIGRANTS
SOCIAL WELFARE
AID TO HOMELESS


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
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DISPUTED EFFECTS ON ECONOMY