Social Work 206 Exam 1

Excerpt from her NYT obituary

"Miss Orshansky did graduate work in economics and statistics in Washington. In 1939, she became a research clerk with the federal Children's Bureau, doing statistical analyses of child health, growth and nutrition. In 1942, as a statistician for the New York City Department of Health, she helped develop a survey on the incidence and treatment of pneumonia. Beginning in 1945, she spent 13 years at the Agriculture Department, collecting and analyzing records on household spending and food consumption. In the 1960s, at the request of the Justice Department, she testified at hearings that led to the elimination of poll taxes, which had been used to keep black Americans from voting. She said that a poll tax of $2, for example, would be enough to cost many poor families an entire day's meals. Miss Orshansky received honors from the Social Security Administration, the American Statistical Association and the American Political Science Association. For most of her career, she lived in an apartment on the waterfront in Washington. She traveled extensively and loved to cook."

Banefield on policy...

"So long as the city contains a sizable lower class, nothing basic can be done about its most serious problems. Good jobs may be offered to all, but some will remain chronically unemployed. Slums may be demolished, but if the housing that replaces them is occupied by the lower class it will shortly be turned into new slums. Welfare payments may be doubled or tripled and a negative income tax instituted, but some persons will continue to live in squalor and misery. New schools may be built, new curricula devised, and the teacher-pupil ratio cut in half, but if the children who attend these schools come from lower-class homes, they will be turned into blackboard jungles, and those who graduate or drop out from them will, in most cases, be functionally illiterate. The streets may be filled with armies of policemen, but violent crime and civil disorder will decrease very little. If, however, the lower class were to disappear--if, say, its members were overnight to acquire the attitudes, motivations, and habits of the working class--the most serious and intractable problems of the city would all disappear with it."(p. 210 - 211)

Definitions of Social Policy

"Social action sanctioned by a society," (William Epstein, in Karger & Stoesz, 2005); "...a collective strategy to address social problems, " (Bruce Jansson, 2005). Efforts to "shape the overall quality of life in a society, the living conditions of its members, and their relations to one another and to society as a whole" (David Gil, 1970).

Carol Weissert (Poli/Sci scholar

"Successfully defining conditions as problems is perhaps the most important single step in obtaining policy change." "Problem definition is the very engine of change because it is the essence of power." "Problems are inherently political because they are not simply out there waiting to be solved; they must be formulated and defined, using political skill to mobilize support for the desired position."

Rationale for expansion

"Texas has been absorbed into the union in the inevitable fulfillment of the general law which is rolling our population westward.... It was disintegrated from Mexico in the natural course of events, by a process perfectly legitimate on its own part, blameless on ours.... (its) incorporation into the union was not only inevitable, but the most natural, right and proper thing in the world.... California will, probably, next fall away from...Mexico.... Imbecile and distracted, Mexico never can exert any real governmental authority over such a country.... The Anglo-Saxon foot is already on its borders. Already the advance guard of the irresistible army of Anglo-Saxon emigration has begun to pour down upon it armed with the plow and the rifle, and marking its trail with schools and colleges, courts and representative halls, mills and meeting houses. A population will soon be in actual occupation of California, over which it will be idle for Mexico to dream of dominion... All this without agency of our government, without responsibility of our people - in the natural flow of events, the spontaneous working of principles, and the adaptation of the tendencies and wants of the human race to the elemental circumstances in the midst of which they find themselves placed." (1845 article in the Democratic Review, Blum, 277)

Mills puts it this way:

"The powers of ordinary men are circumscribed by the everyday worlds in which they live, yet even in these rounds of jobs, family and neighborhood they often seem driven by forces they can neither understand nor govern. 'Great changes' are beyond their control, but affect their conduct and outlook none the less. The very framework of modern society confines them to projects not their own, but from every side, such changes now press upon the men and women of the mass society, who accordingly feel that they are without purpose in an epoch in which they are without power."

Declaration of Independence

"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed. That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or abolish it and to institute new Government..."

Summary of Findings from Longitudinal Studies on Welfare Reform (Slack et al.)

**On average, household income, earnings, and wages improved among former and current welfare recipients, although such improvements appear to do little to lift families out of poverty. Strong labor markets are important for gains to be realized. Most former welfare recipient families continue to experience economic hardship and to rely on other types of public benefits (e.g., Food Stamps, SSI). Health insurance coverage for respondents remained relatively stable over time.

Declaration of Independence, July 4, 1776 June 1, 1785: John Adams formally received by King George III

*John Adams is the U.S. president from 1797-1801

Summary of the Gilded Age

-1865-1893 -period of rapid growth -large industries -developing monopolies -scandals, politicians and industry -extreme wealth for some -marked poverty and hardship for many -often described as the birth of modern capitalism -laissez faire economic policy

Other spending groups:

-527 non-profit organization (named for the section of the IRS code), tax exempt status political committee -national, state a local level -these groups advocate publicly for defeat or election of a candidate -created 25 years ago, changes in IRS law broadened the types of groups eligible for tax-exempt status, this changed allowed groups to gain political committee status under tax law without the more rigorous regulation under federal election law -very few financial restrictions: no limits on contributions or spending -open to all contributors: individual, unions, corporations -rules vary by state -527s cannot coordinate with or contribute to a federal candidate, they are free, however, to portray federal candidates as needed to portray message -must disclose donors -501(c) nonprofit operations: can engage in political activities as long as it is not their primary purpose -not required to disclose donors -contributions are tax-deductible

Power of problem definition

-A condition becomes a problem when recognized by a significant number of people or a number of significant people. -Vexing conditions can remain and persist but never become defined as a problem.

Homesteading Act

-A homesteader had to be the head of a household and at least 21 years of age to claim a 160 acre parcel of land. -Settlers from all walks of life including --newly arrived immigrants --farmers without land of their own from the east were eligible Each homesteader had to -live on the land -build a home -make improvements and farm for 5 years before they were eligible to "prove up". -A total filing fee of $18 was required -30 states had land available for homesteading

What is the "take-away" from our history tour?

-Access to land and a more open economic structure allowed for a purer operation of market principles among a broader segment of the population than elsewhere. -No history of "noblesse oblige"; the responsibilities of moneyed, privileged class towards "lessers". (Top order required to take care of lesser) -The particular strength of Puritanism among colonists ---Total depravity, the concept of Original Sin ---Predestination, God "saves" those he wishes (God already decided so why care or help) -The ramification of "Original Sin" ---suggest that man is depraved at the core and must be disciplined to resist this inherent evil -The ramification of "predestination" ----suggests that one's fate is already decided -If one believes deeply in these tenets then it follows logically that systems developed with this guiding logic would ----Be punitive towards those who need in order to provide the needed discipline for "goodness" ----Be somewhat useless since the fate of one's soul has already been determined Given our history of claiming independence from a world power --Deep, historical fear of an over-reaching central government --Limited experience with and fear of large, government initiatives ----we developed our social welfare programs much later than our industrialized Western counterparts ----it took the Depression and the widespread civil unrest of the 1960's to get the Social Security Act and Great Society programs -Concern that "promoting the general welfare" should not involve any redistribution as this is a denial of rights of the "haves" and bad for the "have nots" (Tax and transfer) -Arguments about social welfare programs "doing more harm than good" have been with us since the inception of the nation

What can and should government do?

-America's political and economic system remained largely laissez-faire from the establishment of the country through the Great Depression -it was widely believed that the economy would grow and prosper if market forces were left to their own ---the demand and supply of goods would regulate the marketplace with individual actors pursuing their own desires and trading their labor for wages -until the Great Depression, monetary policy in modern terms did not exist

The Importance of land: how it is acquired and caused to be productive

-An incredible thirst for land is an important story as these new Americans -believed it to be God's plan, "manifest destiny" that they should acquire land, rid the country of it's native inhabitants -as they would never be saved and reside in God's grace and would not adopt a worldview predicated on ownership of property -The wholesale importation of slaves, regarded as chattel, to provide the economic engine for agricultural production. -Slavery is instituted in the constitution and upheld by the judiciary through the 19th century.

Structural contexts: social Problems and Policy Responses

-As Russell suggests - welfare state development is directly related to the structural contexts surrounding social problems: -historical background -technological stage of development -socioeconomic system

Manifest Destiny

-As you noted in your Jansson chapter, the need for lands and the belief in a defined right to expand "from sea to shining sea" drove Americans westward into Mexican territory (much of what becomes our Southwest) as well as into the lands of Native Americans. -The seeming conflict between establishing freedom and institutions for citizens and the enslavement of Africans, subjugation of Spanish speaking people and the mass killing of Native Americans was not a conflict for many of the early Americans.

Concerns about the harm of welfare state provision

-Benjamin Franklin was quite concerned about the adoption of English Poor Law traditions in early America "I am for doing good to the poor, but...I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it. I observed...that the more public provisions were made for the poor, the less they provided for themselves, and of course, became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer."

The American Enlightenment and revolution

-Beyond Tea and Taxes -The idea of natural rights ---government was only legitimate if it had the will of the people ---the idea of divided government to provide checks and balances against power grabs ---the rejection of monarchy and oligarchy

Elite Theory

-C. Wright Mills wrote an influential book called the "Power Elite", published in 1956 -the term power elite was used to describe a relatively small, loosely knit group of people who tend to dominate American policymaking -bureaucratic, corporate, intellectual, military, and government elites who control the principal institutions in the U.S. and whose opinions and actions influence the decisions of policymakers

Getting on the agenda: focusing event

-Can be dramatic events that force the political system to respond directly --9/11 -Can be political movements that attempt to alter the debate --Widespread protests around the country/world -A president's first "90 days" are when --Executive orders as a both symbolic and practical step to tie in with campaign talk ---this is driven by candidates, political parties, journalistic coverage and constituent pressure

The role of the Medieval Church

-Church looms as primary -Accepted rules/laws governed the behavior of ---serfs ---nobleman ---the monarchy ---the church ------"subsistence economy" (is a non-monetary economy which relies on natural resources to provide for basic needs, through hunting, gathering, and subsistence agriculture.) -Protestant reformation begins to challenge the primacy of the Catholic church beginning in the early 1500's to the mid 1600's. -These were not swift changes!!!!

Beliefs versus reality

-How able are Americans to pursue these deeply held values? -To what extent do you believe our rhetoric matches the lived experience of Americans? -Keep in mind, your answers to these pressing questions will be predicated on how you view ----the fairness of laws ----the openness of access to core social goods

Protestant Reformation

-In the mid 16th century, corruption in the Catholic church spurs Martin Luther, a professor priest, to translate the bible into German so commoners could read it ---This was revolutionary. -In the same time period, Calvin, a French Catholic theologian began agitating for change, moving about the European countryside.

America, race and hierarchy

-It was not a conflict because of a belief in the racial superiority of the Anglo Saxon. -An important step in racializing the Anglo-Saxon myth was aided by the establishment of new sciences which were concerned with differences between races. -Scientists, by mid-century, had provided an abundance of "proofs" by which English and American Anglo-Saxons could explain their power, progress, governmental stability, and freedom. -Races were imbued with innately unequal abilities, these unequal abilities led either to success and world power or to total subordination and extinction.

Who are these Early Americans?

-Keep in mind, the marked upheaval in Europe and the disintegration of old systems make America particularly attractive to ---displaced laborers ---the landless (it was virtually impossible for a commoner to gain access to land in England) ---the religious who felt persecuted ---English poor who could enter indentured servitude to gain passage to America ---------laws governed the treatment of indentured servants in the colonies

US poverty measure

-Keep in mind, we have not yet talked much about what is considered household income What sources of income are counted? What sources of income are not counted? Why might this matter? This is not the threshold any longer but how household income sources are counted and then compared to the thresholds.

Summary

-Large amounts of land are acquired by wealthy business interests at bargain basement prices from the government -Some land is acquired by smaller farmers -No land is made available to slaves -Structure of this first land policy is related to the development of wealth over time.

Characteristics of the power elite

-Mills suggests the small group of individuals who hold pivotal government, industry and economic posts dominate and control political power -form a tight-knit group, closely collaborate and move between government and pivotal industries this movement and collaboration produce a concentration of power and worldview among these actors Examples: -Henry Paulson: Secretary of the Treasury under George W. Bush (July 2006-January 2009); CEO of Goldman Sachs (1999-2006) -William Summers: Secretary of the Treasury under Bill Clinton (1999-2001); Director of the White House National Economic Council for Barack Obama (2009-2010); President of Harvard (2001-2006); Chief Economist at the World Bank (1991-1993) -shared attitudes and beliefs among these actors ensure that --regardless of political party --in spite of seeming "bickering" among elites -all basically agree on some fundamental tenets ---primacy of free-enterprise system ---profit motive ---private property ---maintain the unequal distribution of wealth ---sanctity of private economic power

CONSCIOUS self-reflection

-Moral premises (view of social justice) -Diagnosis of the problem (causes) -Assessment of the (policy) solutions available -Beliefs about the proper role/size of government It is important to recognize that different opinions for or against a particular policy position may stem from differences on any one of these dimensions.

Accounting and implications...

-Official poverty statistics, as we have noted, do not count the effect of near cash or in-kind benefits -masks the full extent to which poverty has been reduced by programs to ameliorate it -income taxes, payroll taxes and work expenses may overstate the living standard that low-income families can afford -refundable Earned Income Tax credits substantially boost after-tax income

Getting on the agenda

-Officials keep track of indicators over time --Poverty rates in sub-groups, marriage rates, birth rates, high school graduation rates, rates of disease infection --Costs of programs like Medicaid or Temporary Assistance for Needy Families (TANF) -Changes in these indicators or a large magnitude may catch official attention -A focusing event like a disaster, personal experience, crisis or symbol ----The most effective way to get a problem on the agenda is to have an incoming president seize and articulate the problem as necessary to address.

From "problem" to "on the agenda"

-Once a condition is recognized as a problem - how does this problem become part of the governmental agenda? -John Kingdon (Poli/Sci scholar) notes several ways that problems are recognized and become part of the governmental agenda.

Reaction to federal policy initiatives

-Policy to deal with 4 million newly freed slaves ---Freedman's Bureau ---Mired in conflict from inception -"There was no tradition of government responsibility for a huge refugee population and no bureaucracy to administer a large welfare, employment and land reform program." (Cimbala & Miller). -The Freedman's Bureau was dismantled in 1872, just 7 years after it's inception. online: Freedmen's Bureau, (1865-72), during the Reconstruction period after the American Civil War, popular name for the U.S. Bureau of Refugees, Freedmen, and Abandoned Lands, established by Congress to provide practical aid to 4,000,000 newly freed African Americans in their transition from slavery to freedom

Where do social welfare activities occur?

-Social welfare activities can occur in any of 6 fundamental institutions of society (Gilbert & Terrell, 2005 ): 1. Kinship (family, Community) 2. Religion 3. Marketplace (producers and consumers) - ---Low Income Housing Tax Credit for producing affordable housing ----forgiveness of state/property and other taxes for locating a business in a distressed area 4. Workplace (employers and employees) ---tax incentive to employers for providing health insurance ---use of pre-tax dollars for employees to purchase health insurance 5. Mutual assistance (ex. voluntary organizations, social support groups, private philanthropy) 6. Government (local, state, federal)

Federal decision that gave rise to Super PACS

-SpeechNow.org v. Federal Election Commission: a federal court found restrictions on individual contributions to organizations seeking to influence elections to be unconstitutional -Citizens United v. Federal Election Commission: this U.S. Supreme court decision decided that limits on corporate and union spending to influence elections was unconstitutional -Supreme Court Justice Anthony Kennedy wrote: "We now conclude that independent expenditures, including those made by corporations, do not give rise to corruption or the appearance of corruption." -Justice John Paul Stevens wrote in his dissent: "At bottom, the Court's opinion is thus a rejection of the common sense of the American people, who have recognized a need to prevent corporations from undermining self government since the founding, and who have fought against the distinctive corrupting potential of corporate electioneering since the days of Theodore Roosevelt."

Progressive Era reformers

-The Gilded Era industrial development, corruption, government support of industry at the expense of citizens followed by the harsh realities of a depression. All of this set the ground work for Progressive Era Reformers. -Progressive Era reformers ----Jane Adams, Grace Abbot, Paul Kellog ----Muckrakers (reforming journalists) chronicle wrongdoing ----Influence of the 1893-1896 depression on thinking about poverty ----Influence of Social Darwinism ----Roots of Social Work (Charity Org./Settlement Houses) Progressive Erra Reforms Often regulatory, local reforms -Working conditions -Housing codes -Fire codes -Prohibition -Public health Main successes were -Workmen's compensation -Mothers' pensions -Juvenile courts -Children's Bureau -Protections for female workers in various states Progressive Era reforms are limited by... -Localism -Supreme Court attacks much legislation Legislative Example -Sheppard-Towner Act passed in 1921, terminated in 1929 (violation of states rights) -One of the first federal matching grant programs -Goals of the legislation were uncontroversial - reducing maternal and infant mortality -The funding mechanism and explicit extension of a federal role, however, was very controversial. -Massachusetts challenged the law in the Courts asserting that the use of matching grants violated states' rights -The American Medical Association (AMA) protested that this act was a move towards socialized medicine. Context -Anti-suffragist Elizabeth Lowell Putnam noted, "the hearings have been carried on as if the fact that a woman had borne a child, or indeed, just happened to be a woman, entitled her per se to medical knowledge on the subject of the proper care of childbirth...the bill will do no good" (Putnam, 1921). -Senator James A. Reed (D-Missouri) noted that this act would "... turn the control of the mothers of the land over to a few single ladies holding Government jobs... We would better reverse the proposition and provide for a committee of mothers to take charge of the old maids and teach them how to acquire a husband and have babies of their own" (from Ladd-Taylor p. 172; original source Congressional Record, 67th Congress, 1st Session, vol. 61, Nov. 1, 1921, 7145). see - Moehling, C.M & Thomasson, M.A. (2009). The Political Economy of Saving Mothers and Babies: The Politics of State Participation in the Sheppard-Towner Program.

Land Policy

-The Homestead Act of 1862 signed into law by Abraham Lincoln turned over vast amounts of the public domain to private citizens. --270 million acres or 10% of the area of the United States was claimed and settled under this act --there was a lot of corruption --meant to stem land monopoly but actually facilitated due to the difficulty of farmers to get to the auctions, raise the capital and successfully farm -speculators often worked for wealthy land owners to outbid or lay claim to the land before others could -Early example of a policy with a seemingly good intent but lack of structure and oversight. -bribery of local officials commonplace -Act was used to buy up prime land and then resell at inflated prices to settlers buy up land to secure water and mineral rights

FY 2018 Budget Plan

-The President's budget, "A New Foundation for American Greatness" notes: -Ending the cap on Military spending -As you can note from the discretionary spending chart, this budget notes $679 billion or 59% of the discretionary budget for Military spending -This is about a 5% increase or about 53.8 billion from FY 2016

Let's clarify the following...

-The U.S. Census Bureau determines poverty status by comparing pre-tax cash income against a threshold that is set at three times the cost of a minimum food diet in 1963 -updated annually for inflation using the Consumer Price Index -adjusted for family size, composition, and age of householder. -"Family" is defined by the official poverty measure as persons living together who are related by birth, marriage, or adoption. Thresholds do not vary geographically (except for Alaska and Hawaii)

Budget Update

-The estimates are that - $1 trillion are due to business tax cuts; $300 billion in individual tax cuts and $200 billion from the repeal of the Estate Tax -The corporate tax rate was reduced from 35% to 20% -The Tax Policy Center estimates that some 11,310 individuals dying in 2017 will leave estates large enough to require filing an estate tax return -Estates with a gross value under $5.49 million need not file this return in 2017. -After allowing for deductions and credits, 5,460 estates will owe tax. Over two-thirds of these taxable estates will come from the top 10 percent of income earners and close to one-fourth will come from the top 1 percent alone. (http://www.taxpolicycenter.org/briefing-book/who-pays-estate-tax) How does the Tax Cut and Jobs Act work with the Budget Control Act of 2011? This act had automatic cuts in both defense and discretionary funding through 2023, and is law. It was amended and renamed the Bipartisan Budget Act of 2015.

the creation of policy is accompanied by Political conflicts over...

-The nature and causes of social problems. -The role of government in society. Which vision of government should dominate? how much power should gov have? -Burden of tax payers - who should pay and how much? -Strategies for coping with social problems - directly tied into how an observer views the nature and cause of the social problem.

Formation of the American character

-The philosophical concept of Manifest Destiny undergirds American expansion in the later part of the 18th century and the mid 19th century. The roots of this ideology, however, came over with the original Colonists. -The concept of Manifest Destiny captured the beliefs and energy of most Americans and is intricately linked to the development of this country.

Monetary policy

-The term "monetary policy" refers to what the Federal Reserve, the nation's central bank, does to influence the amount of money and credit in the U.S. economy. -What happens to money and credit affects interest rates (the cost of credit) and the performance of the U.S. economy

What is the problem?

-The very basis of social policy is the belief that there is a problem that needs to be addressed by government. -Many social conditions never become problems. -How does a society decide what is a problem and what is merely a condition?

Political power and groups

-Theories can help us think about the exercise of power in the political arena. -Power to influence political actors and their agenda -We turn our attention to group function, power and politics to skillfully position ourselves to understand the dynamic process involved in policy formulation

How does this concentration occur?

-Theorists suggest the following mechanisms: ---read the same newspapers ---live in the same neighborhoods ---join the same clubs ---send kids to same schools (often private, legacy admissions) ---share churches and charitable activities ---intermarry -Political scientists, Thomas Dye, notes that ---54% of corporate leaders, 42% of highest ranking politicians went just 12 private colleges

Myriad forces

-There were many influences that aided in the movement from medieval structures to those in the 17th and 18th century -Merchant, guilds and tradesmen begin to amass wealth and demand more freedoms. -Keep in mind, successful colonies were established in America as early as 1607.

Poverty thresholds approximate need in following ways: *********

-They vary by family size. -They are adjusted for inflation. -They are based on food consumption and assume that families spend 1/3 of their income on food. -They do NOT vary by geographic region except for HI and Alaska. 12% of pop in poverty

Phrenology - Example

-This flawed, pseudo science studied the size and shape of the skull and other defining physical attributes and drew conclusions about race and superiority. -Phrenologists considered the Anglo-Saxon of Germanic descent to be the superior race. ----Irish, Welsh and, most pointedly, Asian, Africans and Native Americans were less evolved, inferior races. -Phrenology makes a muscular reappearance during the Nazi regime.

Early Worldview

-Though many early Americans were fleeing strictures and structures in England -----they only knew the system from which they came and would begin to develop familiar institutions here ----"Poor Law" traditions, settlement rules, tithing overtime, however, a uniquely American system would develop -These early settlers where loyal to the crown and required the protection of a world power to provide security.

The Tax Cut and Jobs Act:Job Creation? Tax Revenues?

-Tools for thinking -What kind of analyses matter? 1. Distributional: a common way of framing; benefits based on income quintile (1/5) ----Secondary: how increased or decreased "after tax" dollars affect spending, differences by quintile 2. Macroeconomic: assumptions are needed for these analysis; involves prediction about how various actors will behave under new tax conditions;

Massive immigration

-between 1831 and 1861 the urban population increased by over 700 percent from about 500,000 to 3.8 million by 1850 the foreign born population in ... -New York City become 45.7% -Cincinnati, Ohio 47.2% -St. Louis, Mo 49.3% -Chicago, Il 52.3% -Boston, Ma 34.1% -Philadelphia, Pa 34.1% -from the 1840's to the 1850's, 85% of these immigrants were Irish or German, the potato famine drove Irish immigration most significantly between 1847 and 1854 Library of Congress An advertisement announcing publication of the "American Citizen," a short-lived nativist newspaper. outsiders taking our jobs National Labor Committee Collection - Library of Congress Small children working in mill, bringing food, tending machines, learning the work.

Social policy as an activity involves

-creation or shaping of a course of action -making choices among alternative policies or evaluating policies already in place -implementing or carrying out a policy (Kamerman, 1994)

What is an entitlement?

-government program, good, service or benefit that provides individuals with personal financial benefits -special government-provided goods or services to which an indefinite number of potential beneficiaries have a legal right (enforceable in court, if necessary) whenever they meet eligibility conditions that are specified by the standing law that authorizes the program

Criticisms of the OPM official poverty measure

-identifies only the share of people who fall below the poverty threshold, but does not measure the depth of economic need; -It does not reflect modern expenses and resources, by excluding significant draws on income such as taxes, work expenses, and out-of-pocket medical expenses, and excluding potentially sizable resources such as in-kind benefits (e.g., food assistance); It does not vary by geographic differences in cost of living within the contiguous United States (it is higher for AL and HI); It is not adjusted for changes in the standard of living over time. The strict definition of measurement units—"family"—as persons living in the same household who are related by birth, marriage, or adoption does not reflect the nature of many 21st century households, including those made up of --cohabitors --unmarried partners with children from previous relationships --foster children

Summary of the depression of 1893-1894

-in the first nine months of 1893, 172 state banks, 177 private banks, and 47 savings-and-loan associations closed -more than 15,000 businesses failed -railroads started closing—156 of them before it was over -mines were shut down -steamers stayed in port -factories closed -companies went bankrupt

Homesteading

-keep in mind that the Homestead Act predates emancipation so slaves were not eligible -distribution of lands to former slaves, after freedom, was quite minimal -the Freedman's Bureau was underfunded and temporary -hampered by resistance to governments' involvement in welfare and concerned about preferential treatment towards fomer slaves

Tension during the Gilded Age

-laissez-faire policies that opposed government interference in economic affairs beyond the minimum necessary for the maintenance of peace and property rights -government assumed more bureaucratic control and authority, often on behalf of and to the benefit of corporate concerns -government actively participated in land policy, railroad subsidies, immigration policy and Indian policy -widespread corruption of politicians, corporate wrongdoing and marked hardships among urban workers became more widely known to all Americans Library of Congress Workers stringing beans, those too small to work are held on laps of workers or stowed away in boxes. The first child labor law was passed in 1916, the Keating-Owen Act. This act banned the sale of any article produced by child labor (factory, cannery, and mine) and it regulated the number of hours a child could work. In 1918, the Supreme Court declared the Keating-Owen Act unconstitutional stating Congress was using its power to go beyond its right to regulate interstate trade. 1933 -National Industrial Recovery Act set age limits and working conditions 1938 - Fair Labor Standards Act mandatory minimum wage for children and maximum work hours, limited certain jobs children could work

Supplemental Security Income (SSI)

-means tested -federally-administered income assistance program authorized by Title XVI of the Social Security Act -established in 1972 (Public Law 92-603) with benefits first paid in 1974 **-SSI provides monthly cash payments in accordance with uniform, nationwide eligibility requirements to needy aged, blind, and disabled persons. -SSI replaced the federal-state programs of Old Age Assistance and Aid to the Blind established by the original Social Security Act of 1935 as well as the program of Aid to the Permanently and Totally Disabled established by the Social Security Amendments of 1950

early Market Economy

-movement to a more market based economy absent the weighty history or obligations that evolved in Europe based on centuries of feudal history -Americans could access land ---farms become individual units of production ---families produced goods, traded and earned money in a way that would have been impossible in England -This sows the seeds for the American revolution

Industrialists as a Darwinian success

-prior to the Depression of 1893, industrialists were considered a perfect specimen of the opportunity and success of the American experiment -UNPRECEDENTED RISE OF INDUSTRY was almost a mythical story of the "Captains of Industry" the story unwinds in this fashion: -a legion of ingenious and industrious capitalists transformed the American economy with their business acumen -many become folk heroes -they were used as examples of Social Darwinism -they were, indeed, the fittest and most capable of men and drove the engine of progress for all -these men embodied the "rags to riches" potential for all who worked hard in America

The Gilded Age (1865-1893)

-this roughly 30 year period is typified by some major themes -the term, the "Gilded Age" comes from a novel of the same name published in 1873 by Mark Twain and Charles Dudley Warner -the novel is a fictional account of politics and corruption in the 19th century

REview

-what social welfare policy is -where social welfare activities occur -different perspectives on where these activities should occur -what political conflicts center on

Types of poverty measures

1. Relative Poverty -Income below some point on the distribution -Below half of median income (e.g.) Advantages -Reflects that individuals live in social contexts (inequality; social distance; social inclusion) -Allows for direct international comparison Disadvantages -Can never "end" poverty -No sense of need 2. Absolute poverty Income below some dollar amount Advantages -Easy to measure -Easy to see trends Disadvantages -What about changing standard of living? -Doesn't include in-kind benefits -Which income do we count?

Types of poverty measures

1. Relative poverty measure -standing relative to some central tendency -ex. considered poor if income is 50% (or 40%) of the median national income 2. Absolute poverty measure -calculated based on assumptions of costs for purchasing bundle of goods considered "necessary." -ex. U.S. Federal Poverty Threshold

Perspectives on Government's Role in Social Welfare Policy

1. Residual- Government's role in ensuring the social welfare of its people is only necessary when the "traditional" institutions responsible for social welfare are unable to fulfill their obligations. Usually advocates of this perspective define traditional to mean: --Kinship --Mutual assistance --Religion Note: there is variation among supporters about how much government should act in the marketplace and whether this action should target producers or consumers 2. Institutional - Social welfare policy is an integral and primary function of government. In this view, the institution of government is designed to confront and address social problems. 4.Developmental - Focuses on human development, realizing its potential, and promoting or improving quality of life for individuals and groups. This view moves beyond a focus on social problems, to address "positive" outcomes. Different ways to approach a problem.

Caseloads under AFDC and TANF

1996 Median: 108,241 Low (Wyoming): 12,180 High (California): 2,592,547 Wisconsin: 158,581 2010 Median: 37,705 Low (Wyoming): 681 High (California): 1,410,547 Wisconsin: 46,119

State Child Health Insurance Programs (S-CHIP)

1997: Expanded coverage to children up through 200% of FPL 8.4 million children enrolled (2015) (CHIP) provides health coverage to eligible children through both -Medicaid -separate CHIP programs CHIP is administered by states, according to federal requirements. The program is funded jointly by states and the federal government. states have flexibility to design their own program within Federal guidelines benefits vary by state and by the type of CHIP program

Marginal Tax Rates for 2016

7 Brackets 10%, 15%, 25%, 28%, 33%, 35%, 39.6% (depends on your income) 4 filing status, rates vary by these Based on taxable income not gross income Taxable income = Gross income - deductions/exclusions

Vision for SSI

A basic national income maintenance system for the aged, blind, and disabled which would differ from the state programs it replaced in a number of ways. Administered by the SSA in a manner as comparable as possible to the way in which benefits were administered under the Social Security Program. Congress intended the new SSI program to be more than just a federal version of the former state adult assistance programs which it replaced. "The Committee bill would make a major departure from the traditional concept of public assistance as it now applies to the aged, the blind, and the disabled. Building on the present Social Security program, it would create a new federal program administered by the SSA, designed to provide a positive assurance that the nation's aged, blind, and disabled people would no longer have to subsist on below poverty level incomes" (Senate Report No. 92-1230, p. 384; U.S. Senate, Committee on Finance, Sept. 26, 1972).

What is a block grant?

A block grant confers monies to the state from the federal government. The state has discretion, under certain broadly stated federal goals, in the dissemination of these funds. Maximum monthly TANF cash benefit amounts, July 2009 -Varys by state

SNAP - work requirements

Able-Bodied Adult Without Dependents (ABAWD) work requirements were implemented in 1996 as part of federal welfare reform -- if not working at least 20 hours a week - 3 months of SNAP in a 3 year period ABAWD provision suspended as part of the American Reinvestment and Recovery Act (ARRA) of 2009 --provision reinstated as of October 1, 2012

Getting on the agenda: Indicators

According to the CDC -In 1998, 30 million adults (18-64) did not have health insurance coverage -In 2010, 42 million adults (18-64) did not have health insurance coverage -These are statistics about magnitude which show an increasing trend in adults who lack health insurance coverage over more than a decade -Providing context for the Affordable Care Act -These data were very important in the healthcare reform -Of primary importance, however, was an incoming president with a mandate (election promise), social capital and the oval office to move this legislation forward. -This is the first significant healthcare legislation since Medicare and Medicaid in the 1960's

Benefit Levels under AFDC and TANF

After adjusting for inflation... Change in benefit level from 1996-2008 Median: -22% Hawaii: -34.30% Maryland: +11.50% Only three states benefits were higher in 2008 than 1996, after adjusting for inflation Wyoming, Mississippi, Maryland Wisconsin: -4.20%

The Affordable Care Act and Medicaid Expansion

An expansion in Medicaid eligibility to nearly all adults with incomes at or below 138% of the federal poverty level effective January 1, 2014. While this expansion was intended to occur nationwide, the Supreme Court ruling on the ACA effectively made it a state option, and 26 states implemented the expansion by 2014. New streamlined Medicaid eligibility and enrollment policies and a single application for -Medicaid -CHIP -subsidized Marketplace coverage. All states must implement these simplifications, which are designed to better connect eligible people to coverage, regardless of whether they implement the expansion.

OASDI program: 2018

At the end of 2018, benefit payments to about 63 million people: 47 million retired workers and dependents of retired workers 6 million survivors of deceased workers 10 million disabled workers and dependents of disabled workers. During the year, an estimated 176 million people had earnings covered by Social Security and paid payroll taxes on those earnings. Total expenditures were $1000 billion. Total income was $1,003 billion. The OASI Trust Fund and the DI Trust Fund are projected to have sufficient reserves to pay full benefits on time until 2034 and 2052, respectively. Legislative action will be needed to prevent reserve depletion in those years. In the absence of such legislation, continuing income to the trust funds at the time of reserve depletion would be sufficient to pay 77 percent of OASI benefits and 91 percent of DI benefits.

What else? You ask....

BUDGET AND POLICY HOW DO WE PAY FOR WHAT WE CHOOSE TO DO? A MENTOR ONCE TOLD ME THAT ALL SHE NEEDED TO UNDERSTAND A COUNTRY'S SOCIAL WELFARE POLICY WAS A COPY OF THE BUDGET WE ARE WHAT WE ARE WILLING TO PAY FOR.

FY 2018 - Discretionary Spending cuts/Increases

Between the FY2016 and FY2018 proposed budgets, cuts/increases are proposed for: -Military - increase about 54 billion -Food and Agriculture - cut about 2.3 billion -Energy and Environment - cut about 13.6 billion -International Affairs - cut about 12.6 billion -Transportation - increase about 1.6 billion -Science - decrease about 1 billion -Health - decrease about 7.6 billion -Housing and Community - decrease about 16.2 billion -Education - decrease about 13.1 billion -Veteran's Benefits - increase about 8.5 billion

Racial Essentialism

By the 19th century, scientists came to believe that races had essences, just like species. Not just physical characteristics, but also habits of mind and moral attributes. In the 21st century, scientists know this is wrong. All humans are the same species - they can mate and produce fertile offspring. The majority of physical anthropologists find that all anatomically modern humans are descendants of a handful of people who lived in East Africa about 200,000 years ago. (Zimmer, Carl, 2013, Rare genes cause common diseases. Discover 34(1): 72; Interbreeding with Neanderthals. Discover 34(2): 38-44.)

Groups, power, money and democracy

Can democracy exist without interest groups? -how to harness political will? Are all citizens equal in organizing interest groups? -why or why not? what might some of the constraints be? Are interest groups too powerful? -how would you know? Pluralist idea: as an individual in a democracy, one has little power find like minded folks and organize, fund-raise, lobby and your group can have an impact on policy Power elite idea: a limited group of powerful actors across important government, industry and military sectors so constrain the --scope of the issue --the agenda --levers of power --resources that the masses are left with little power in a severely limited policy scope

Structure of UI

Created by the Social Security Act of 1935 -Federal-state unemployment compensation -Based on federal law -Administered by state employees under state law -Cash benefits for those out of work -No fault loss of job -Workforce attachment (amount of wages/weeks worked) -Available and seeking work Funded -Employer taxes (either federal or states) -Each state designs its own UI program within federal requirements Length of benefit -Most states currently pay a maximum of 26 weeks -During high unemployment periods in states Benefits can be extended for up to 13 (in some cases 20) additional weeks up to a maximum of 39 (in some cases 46) -Extended benefits are funded ½ state funds and ½ federal funds -Federal government paid 100% of extended benefits for weeks of unemployment beginning after February 9, 2009 through December 31, 2012 UI during recessions -Structured to be counter-cyclical -Pay benefits during recessions -Collect revenues during recovery

What happens to the New Deal...

During WWII, many of the social programs of the New Deal are dismantled unemployment dropped and it became difficult to justify programs that focused on jobs war gave conservatives more power and they would leverage cooperation in foreign policy with cuts in the New Deal or the quashing of domestic legislation war time deficit made it difficult to fund programs as we have discussed, "guns and butter" "I've got to get legislation passed by Congress to save America. The Southerners... occupy strategic places on most of the Senate and House committees. If I come out for the antilynching bill now, they will block every bill I ask Congress to pass to keep America from collapsing. I just can't take that risk." (FDR, 1938) OK - so what? How to keep your eye on the "policy" ball and not become distracted? How to divine what candidates might do once in office on fiscal, tax and budget policy? Search out their policy positions and use what you have learned to arrive at a reasonable estimation of potential policies.

Getting your head around the welfare state

Earned Income Tax Credit (EITC) For now, I want you to know that it exists, it is large, has enjoyed considerable bi-partisan support and is tied to work.

The evolution of economic thinking through the New Deal

Economic Reality before the Great Depression Prior to the stock market crash of 1929 -Americans subscribed to a "boom and bust" school of economics -the economy overheats, speculation runs rampant and a crash is unavoidable -"panics" had occurred in the 1830s, 1850s, 1870s and 1890s under 4 different presidents -None of these presidents did much to ----stem the deflation in prices ----contraction of investment ----loss of jobs It was not understood or believed that government could do anything.

TANF Highlights

Eliminated entitlement to benefits Work requirements (work activities) Time limits -5-year maximum life time limit on benefit receipt -States can exempt 20% of caseload Funding in block grants to states ($16.5 billion/year) -A pot of money vs. increased federal money to match need **States now design their own programs Delinked "welfare" w/ food stamps and Medicaid Increased funding for child care Increased income eligibility for Medicaid and other transitional benefits Strengthened child support enforcement **Family caps and sanctions - allowed states to impose Others not eligible for federal benefits: illegal immigrants; new legal immigrants (w/ < 5 yrs of residence); those convicted of certain drug felonies; minors living independently

Diagram

Elitism (one way Power--> Mainstream Media--> Community and Social Movements--> Community (not to Main stream Media) no media cover of social movements Pluralism Power <-->Main stream Media<--> Community <--> Social Movements <-->Main stream Media and to Power

Program administration

Federal, State, and local governments share the costs and administration of SNAP. Congress authorizes the program and appropriates necessary funds. FNS administers SNAP nationally Program Administration: Who pays for what? State and local welfare agencies operate the program locally. The federal government fully funds SNAP benefits The cooperating agencies share administrative costs, with FNS paying about 50 percent of such costs.

Funding Medicaid Expansion

Feds covered 100% of the costs of expansion through 2016 2020 and beyond, feds will cover 90% of the Medicaid expansion Supreme Court Ruling on the Affordable Care Act (ACA) allowed states to opt of Medicaid Expansion, became a state's decision.

From the Medieval to the Modern

Feudalism -the collapse of this system, ushering in of the modern era -represents a radical transformation of the ordering of society (The dominant social system in medieval Europe, in which the nobility held lands from the Crown in exchange for military service, and vassals were in turn tenants of the nobles, while the peasants (villeins or serfs) were obliged to live on their lord's land and give him homage, labor, and a share of the produce, notionally in exchange for military protection.) -These are changing structures and beliefs taking place over several hundred years. -We care about this because this history influences the kinds of institutions Americans choose to develop.

Total Budget

First thing to notice: These are very, very, very large numbers so small changes in a percentage from one year to the next are quite consequential. Mandatory spending will change very little unless Congressional action fundamentally alters the legal framework for Social Security, Medicare and Medicaid. The only way in which this portion of the budget changes dramatically is if congress changes the nature of the program. Social Security, Medicare and Medicaid account for the vast majority of Mandatory Spending.

How to evaluate different proposals?

First, understand what we just reviewed The how, who, how much This gives you the mechanism (how the system works) Who the system effects (magnitude of the program, demographic impacts) The level of benefits And finally, and very important Knowing the source of record for actuarial reports to congress - solvency dates, etc.

What is Social Welfare Policy?

First, what is social welfare?: "social, economic, educational, and health needs that are fundamental to the maintenance of society" (R. Barker, 1995, NASW). Definitions of Social Welfare Policy -"Anything a government chooses to do, or not to do, that affects the quality of life of its people" (DiNitto, 2005). -"Nonprofit functions of society clearly aimed at alleviating distress and poverty" (Dolgoff & Feldstein) -"Social welfare policy...regulates the provision of benefits to people to meet basic life needs, such as employment, income, food, housing, health care, and relationships" (Karger and Stoesz, 2005). -Involves a series of political issues about what should be done for the poor, near poor and non-poor. (Axinn & Stern, 2001)

Eligibility: who, how?

For adults: disability is defined as the inability to engage in substantial gainful activity (SGA) by reason of a medically determinable physical or mental impairment expected to result in death or last at least 12 months the worker must be unable to do any kind of work that exists in the national economy, taking into account age, education, and work experience Children under age 18 -has an impairment that results in "marked and severe" functional limitations -For adults aged 65 or older can qualify for SSI benefits without being disabled -Most adult SSI recipients have other income --countable income is subtracted from the federal benefit rate to determine their SSI eligibility and payment amount

Summary of General Assistance

For the most part, the federal government has left it up to states to provide basic assistance to childless adults in need of assistance. states have never provided significant support for this group, this limited support has weakened significantly over time

Core american ideals

Freedom Choice Opportunity Mobility (child does better than parents)

Medicare Trust Funds

Funds health services for beneficiaries of Medicare. HI: hospital insurance trust fund Financed through payroll taxes SMI: supplemental medical insurance Financed through general funds

Residual "Welfare"

General Assistance (GA) a residual program with limited availability for groups who do not fit into either TANF or SSI poor, non-aged childless adults "non-deserving poor" meager benefits, scarce availability

Modern behaviorists...

George Gilder is an example of a modern behaviorist along with Charles Murray and Larry Meade Your Schiller reading references Gilder and Murray in the "Big Brother" section under Causes and Cures. Gilder clearly embraces the idea that levying taxes for programs is destructive: He notes, "[w]hatever the outcome of these developments, an effort to take income from the rich, thus diminishing their investment, and to give it to the poor, thus reducing their work incentives, is sure to cut American productivity, limit job opportunities, and perpetuate poverty." So - programs are bad for the poor and the rich

Benefit money spending

Health 52% cash 18% food 12% housing 5%

Main points

Health care dominates all other categories of benefits and services, accounting for nearly half of federal spending for 2008/2009 and a bit more than half for 2015. Cash aid is second but trails far behind, comprising 18% of spending in FY2009 and 2015. Other categories, in decreasing size, are food assistance, housing and development and education

Stanford Center for Poverty and Inequality

Health care is a right not a charity Switch from job--> Gov responsiblity

SUPPLEMENTAL NUTRITION ASSISTANCE (SNAP) - Income/Asset tests

Households may have $2,000 in countable resources -Ex., bank account, or -$3250 in countable resources if at least one person is age 60 or older, or is disabled Certain resources are NOT counted, such as a -home and lot -resources of people who receive SSI -resources of people who receive TANF -most retirement and pension plans Procedures for handling vehicles are determined at the state level. -number of States exclude the entire value of the household's primary vehicle as an asset. -In States that count the value of vehicles, the fair market value of each licensed vehicle that is not excluded is evaluated 39 States exclude the value of all vehicles entirely 11 States totally exclude the value of at least one vehicle per household

What do you need to know to understand Social Security?

How does the program work? Social Security is largely a "pay-as-you go" program Today's workers pay Social Security taxes (OASDI), this money is used for benefits for current retirees. Not like a pre-funded company pension where money is accumulated in advance and paid out at retirement. This is important to understand so you have the tools to understand conversation about potential reforms.

What do you need to know...?

How much were benefits on average, 2017? The average monthly benefit for retired worker: $1,460 Spouses of retired workers: $627 children of retired workers: $634 disabled workers: $1,328 Spouses of disabled workers: $382 children of disabled workers: $363

Human capital theory

Human capital refers to the skills, education, health, and training of individuals. The term capital is used because these skills or education are an integral part of us that is long-lasting, and can be applied in the labor market. It is believed that increasing human capital increases productivity in the labor market and thus increases earnings. Let's leave aside macro-economic changes in the economy - regional dips, changes in one segment of the labor market and think about the implications of human capital theory on poverty.

Resources for understanding the Tax Cut and Jobs Act

IRP Webinar -The Tax Cuts and Jobs Act and Its Implication for Low-Income Households. https://www.irp.wisc.edu/resource/the-tax-cuts-and-jobs-act-and-its-implications-for-low-income-households/ http://www.crfb.org/blogs/tax-cut-and-jobs-act-will-cost-15-trillion

How does this theory work?

If we theorize a labor market that works freely, the question of poverty is one of a lack of human capital skills. We then think about job training, higher levels of education, technical training for growing segments of the economy, etc. This is sensible - we have all more or less, believed this to be a reasonable approach to improving earnings - learn more, increase your skills. What do the data tell us? This intuition about education increasing earnings is supported by looking at large national data. Census data shows us that average earnings for those with less education is lower than those with more education. At the same time, however, we also know that there are some other unmeasured factors affecting income b/c when we control for education levels we still find racial differentials in earnings. This means that education does not explain differences in earnings by race. Suggesting that there are issues besides education that explain why White, non-Hispanic workers earn more than both black and Hispanic workers in the same job with the same education. So - we know two things so far: 1. human capital makes a difference for earnings 2. human capital is not the whole story because controlling for levels and quality of education, years of experiences, as well as job sector, we still observe earnings differences by race and gender Human capital in the form of increased education and on-the-job training do not equalize earnings between like workers Workers with higher levels of education and training, on average, earn more than their peers with less education and training. Now, let's explore the role of human capital more specifically....

Evolution over time...

In 1956, Aid to the Permanently and Totally Disabled (APTD) was added. In 1962, ADC became Aid to Families with Dependent Children (AFDC). While, by 1974, Old Age Assistance (OAA), Aid to the Blind (AB) and Aid to the Permanently and Totally Disabled (APTD) were consolidated under SSI, Supplemental Security Income AFDC came to be regarded as welfare. In 1996, with the introduction of welfare reform, Congress ended the federal entitlement to welfare by replacing AFDC with Temporary Aid to Needy Families (TANF).

Social Insurance: Social Security Philosophy: Risk/Uncertainty

In an industrial society there are risks Uncertainty about future wealth and health Prior to industrialization families often cared for members who needed help Modern industrial societies are typified by a mobile work force Families in different locations These risks can often not be borne by an individual alone

Social policy as a field...

Includes: -governmental actions -interventions -laws -regulations that provide individuals with a defined minimum standard of living income, goods, services as a matter of legal right, regardless of the normal market patterns of distributions (Kamerman, p.2, 1994)

Options for Social Security

Increasing revenue: Raise taxable earnings cap from $132,900 Raise the Social Security tax rate from 12.4% Extend FICA taxes to other sources of income (rents, dividends rather than just wages) Increasing revenue: Invest part of trust funds in equities Earmark specific taxes for Social Security Extend Social Security coverage to current state/local governments employees who are not covered Lowering benefits: Raise retirement age for full benefits Raise retirement age for early benefits Lowering benefits: Index benefits to keep pace with inflation instead of wage increase moving from "wage indexing" to "price indexing" Reduce cost of living adjustment using a different adjuster

Poverty, behavior and policy

It follows then - that it is futile and wasteful to mount public policy initiatives to ameliorate the lives of the poor because the culture of poor people themselves mandates endemic and enduring poverty. On the contrary, culture of poverty theorists argue that public policy should have a punitive thrust in order to break or change these "culture of poverty" behaviors.

Political and social context...

It is most useful to consider programs within a social context. -One might consider the following: How do beliefs about who a program supports influence support for or against it? How might historical events, changing norms or social change affect these opinions?

Keynesian Economic Theories

John Maynard Keynes' (1883-1946) theories represent his effort to deal with and properly understand the economic conditions underlying the Great Depression FDR's New Deal force the government into uncharted territory and establishes the government as responsible for the economic well-being of the nation

Struggle, from the inception of the Nation, for the democratic ideal

July 5, 1852 - 76 years after independence "What to the Slave is 4th of July?": James Earl Jones Reads Frederick Douglass's Historic Speech

Discretionary Spending

Large amount (54%) to military Education Housing/community Veterans Benefits Government Medical care/ health energy/ environment Food/ agriculture Trumps administration increased military spending

Racial Essentialism: Modern conversation

Let's turn to philosophy for a bit of current perspective. https://www.youtube.com/watch?v=epAv6Q6da_o Dr. Mills offers a thought experiment to think about how the social construct of race influences the US - now, let's hold onto this and move on to policies. Mill's comments about blood refer to the "one drop black blood rule" that is how we have "tracked" racial categorization in the US.

How much taxes do workers pay?

Let's use the OASDI tax rate for wages paid in 2020 for this... An individual with wages =/> $137,700 will contribute a maximum of.... $8,537.40 into OASDI program in 2020, their employer would contribute the same amount Medicare hospital insurance (HI) is levied on all earnings - 1.45 employee and 1.45 employer (2.9) As of 1/2013, individuals with earned income >$200,000 ($250,000 couples) pay an additional 0.9 in HI taxes.

Conceptions of Purpose

Marmor, Marshaw and Harvey suggest To properly understand the nature of the welfare state and its' programs, it is important to understand various actors conceptions of purpose Behaviorist Residualist-is an outlook on social welfare which maintains. that assistance should be provided only when traditional means. of meeting daily needs (e.g. family or the labor market) fail to. satisfy the minimal requirements of life Social Insurance Egalitarian Populist (Elite)

Federal benefit levels - 2011

Maximum federal SSI payment (adults): $674 monthly - individual $1,011 monthly - couple Average monthly SSI payments: $595.10 for children <18 $515.10 for adults aged 18 to 64 $404 for adults aged 65 or older Adjusted annually to reflect cost of living SSI recipients are automatically eligible for Supplemental Nutrition Assistance Program (SNAP)

The objectives of social policy are varied

May be social justice, equity, social cohesion For example: Anti-discrimination policy in hiring and housing is concerned with equity.

Getting your head around the welfare state

Means-tested cash assistance: --Temporary Assistance for Needy Families (TANF) --Supplemental Security Income (SSI) --General Assistance (GA) --Earned Income Tax Credit (EITC) Means-tested, near cash assistance: --Supplemental Nutrition Program (SNAP)

The OPM as an indicator has a host of shortcomings...

Meyer and Sullivan note: "Few economic indicators are more closely watched or more important for policy than the official poverty rate. The poverty rate is often cited by policymakers, researchers, and advocates who are evaluating social programs that account for more than half a trillion dollars in government spending."

The U.S. Health Care System:

No guaranteed coverage for all citizens State variation in coverage Gaps in coverage (over time and across groups) Huge spending, mediocre health outcomes Many Americans receive subsidized healthcare through employers. Firms that offer insurance as a part of their compensation package. Firms deduct the costs of health insurance on their taxes. This is reflected in the tax expenditure budget. In 2010 (before ACA) - 49.1 million uninsured non-elderly Americans

The role of time

Now, when you think about investments in human capital (education, training) you must also think about getting a return on your investment. Let's say the average age of the class upon graduation will be 21. Assuming an average life-expectancy of about 77 years (give or take years depending on race and gender) - you can all expect about 56 years to recoup this investment in education in the labor market. If you return to school later in life, your 40's or 50's, you have less time to recoup your investment.

Trust Funds: Which Programs?

Old-Age and Survivors Insurance (OASI) trust fund -Benifits paid to --Retired workers and their families --Families of deceased workers, are paid from OASI trust fund Disability Insurance (DI) trust fund Benefits paid to disabled workers and their families are paid from the DI Trust Fund.

Freedom of slaves thought gov was giving preference to these people

Opposition to the Freedman's Bureau during Reconstruction (1865-1877) was fierce. The nation needed to decide what to do with 4 million newly freed slaves. Andrew Johnson vetoed new legislation for the bureau on the grounds that it violated state's rights, gave preference to a group of citizens and would be enormously expensive.

Medical Programs: How do Americans receive healthcare?

Our system is based on insurance provision under both private and public systems which Americans use to access health care providers. Medicaid: income-tested, varies by state (some categorical eligibility, some only income-eligible) Medicare: universal provided to the elderly and certain other groups, age-conditioned S-CHIP: children Employer-provided benefits Credits to purchase plans on the ACA marketplace (some states have their own plans, others did not develop and their residents must use the federal plans).

Where does the $$$ come from?

PAC: political action committee PAC represent labor, business or ideological interests Can contribute $5,000 to elect or defeat a candidate per election cycle Can contribute up to $15,000 annually to national party committee

Personal Responsibility and Work Opportunity Reconciliation Act of 1996

PROWRA marked a major change in US social policy by repealing AFDC (a federal entitlement) and replacing it with TANF (a state block grant) PROWRA "eliminated the 60-year old federal guarantee of ongoing cash assistance to all qualifying poor families and replaced it with time-limited benefits, for which recipients must work, provided through capped block grants to the states. It also transferred primary responsibility for the operation of welfare programs from the federal government to the states." (Alan Guttmacher Institute, 2000)

What "type of taxes" are payroll taxes?

Payroll taxes are said to be a regressive tax. What does this mean? OASDI taxes are considered a regressive tax b/c they take a larger share of the income of middle and lower income workers than higher income workers Levied against wages only not dividends, rents or interests Social Security taxes are levied on earnings up to $132,900 in 2019 so every dollar above $132,900 is not subject to the 6.2% FICA taxes.

Social Security Trust Funds

Payroll taxes from employees, employers, the self-employed, and a small amount of general revenues are credited in an account in the Treasury. Treasury has the authority to pay for benefits and administrative expenses out of these funds.

Pluralism

Pluralism: a core political science theory about how groups function in our political system -adherents believe the political process is dominated by a number of autonomous groups that compete in an open political system ----professional organizations, trade unions, business and financial lobbies -these various groups go about attempting to secure their policy preferences -the result of this competition among groups produces observed policies -pluralists hold that there is equality in political opportunity

Pluralism and Power

Pluralists are concerned with... -Potential power ---ability to turn resources into power --------resources: cash, skills, prestige, legal authority, access, etc. -Actual power ---A can force B to do X ---A can block B from gaining X Pluralists suggest -resources and potential power are widely distributed throughout society -some resources are available to all (vote, sign petition, contact legislator, etc.) -at any given political moment potential power exceeds actual power

Measuring Poverty

Poverty Measurement: The Details The lives of folks experiencing poverty What do we learn by comparing poverty measures?

Patient Protection and Affordable Care Act -- 2017

Previous Republican suggestions have been: high-risk insurance pools expanding health saving accounts tax credits based on age (not income as the ACA does) to help pay insurance premiums sharply reduce federal funding for state Medicaid programs It is unclear what will happen. The President campaigned on repeal of the ACA. Congress failed to pass "Repeal and Replace" legislation. The President used the Executive Order to intervene in the healthcare market. The Tax Cut and Jobs Act repealed the individual mandate to hold insurance in the Patient Protection and Affordable Care Act. The ACA was complex legislation with mechanisms in the tax code, incentives for insurance to enter the marketplace, enrollment periods, marked state variation Many provisions of the Act have been quite popular Remaining on parents insurance for young adults Expansions of Medicaid, for certain actors in certain states as it represented an increase in who has access to health insurance Cost containments, premiums in the Marketplace -More challenging ACA is complex legislation and was designed with many moving parts. It is difficult to think about the consequences of specific measures in isolation. This was not the design of the ACA.

2017 Social Security Trustees Report

Projections Under the Trustees' assumptions, Social Security's total income is projected to exceed its total cost through 2021. This is the OASI Trust Fund. The OASI Trust Fund reserves are projected to be depleted in 2035. This means that OASI income would be sufficient to pay 75% of scheduled benefits. Under the Trustees, assumptions the DI Trust Fund asset reserves are projected to be depleted in 2028. This means that the DI Trust Fund would have sufficient funds to pay 93% of DI scheduled benefits.

International Comparisons

Relative Poverty measure is: Used in the rest of the developed world Incomes < half of median income (first quartile) U.S. poverty and child poverty rates would be higher under this measure Comparative perspective

Welfare Reform: P.L. 104-193: Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA

Replaced AFDC with TANF Primary goals of TANF: 1. Provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives; 2. End the dependence of needy parents on government benefits by promoting job preparation, work, and marriage; 3. Prevent and reduce the incidence of out-of-wedlock pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies; and 4. Encourage the formation and maintenance of two-parent families.

Defined benefit

Retirees receive guaranteed benefits, usually based on number of years employed, income level. -Our Social Security benefits are a defined benefit. Pay-as-you-go - current workers pay for current retirees in an cross-generational compact --Demographic events (our baby boom) necessitate system adjustments Societal impacts: encourages a collective consciousness - we workers pay for you now and future workers will pay for us Single purpose financing Purpose is a collective retirement system, not an individual account though transfers to spouses/children are possible in our system -If all beneficiaries die - $$ are returned to the system Since benefits are guaranteed, in our case, backed by the full-faith of the US government, beneficiaries do not take on market risk. Social insurance model so risk is spread across each generation - some will have long lives and some will have short lives and the less healthy, therefore, will subsidize the well. This is part of how the system works to spread risk across a generation.

Limits of Capitalism....

Russell, notes... "What counts is that the primary goal of capitalism production is to produce commodities that are exchangeable at a profit, that is, have exchange value. Therein lies the rub and flaw in the system, according to Marx: the primary goal of capitalists is to produce commodities for which they can reap profits rather than to produce goods that are useful to society...Marx chose not to exploit the conflict between use and exchange value...but it is precisely this contradiction that highlights the limitations of the system and has the potential for indicating where reforms, if not revolutionary changes, need to be made. Reforms, at the least, are needed to the extent that the system either does not produce needed goods and services or produces harmful goods and services." Russell notes, "If there is a contradiction between production for usefulness and production for profit, there is by implication also a contradiction between distribution of goods according to need and unregulated market distribution of commodified goods according to the purchasing abilities of consumers...Where this analysis becomes directly relevant to contemporary social policy is that distribution according to purchasing power - or, in more technical economic terms, effective demand rather than need - results in excluding poorer parts of populations from needed goods and services, including basic essentials such as food, housing and medical care."

SNAP

SNAP acts as an important anti-recessionary tool to ease consumption (Ziliak et. al 2003). Traditionally, SNAP participation has been pro-cyclical (Mabli et al. 2009), such that improvements in the economy have resulted in decreases in program participation. Research suggests that knowledge of and access to SNAP benefits is mediated by state-specific behavior that either facilitate or restrict SNAP participation. SNAP has be found to have a multiplier effect, it is estimated that every $5 in SNAP benefits generates as much as $9 in total economic activity (USDA, 2011)

SNAP: Review:Magnitude, administration

SNAP is the largest domestic food and nutrition assistance programs administered by the Food and Nutrition Service (FNS) of the U.S. Department of Agriculture (USDA). SNAP is available to all individuals who meet the federal eligibility guidelines set by Congress and serves a broad demographic spectrum of the needy population. It provides benefits electronically via an electronic benefit transfer (EBT) card the benefits may be redeemed for eligible food items. As of September 30, 2013, 248,666 stores across the nation were authorized to accept SNAP benefits

How do benefits vary by groups served?

SSI - Federal benefit Uniform across states Automatic eligibility for SNAP Higher benefit levels Adjusted annually for cost of living

Dynamic Analysis: Tools...

Several models, different assumptions -(Tax Policy Center models, Penn-Wharton Budget Model) -I will show you several models with slightly different assumptions: 1. TPC static/dynamic models: tax cuts boost the economy in the short-run as people spend increased after-tax income, temporarily raising output 2. Penn-Wharton Budget Model: does not make output assumption; projects that tax changes, and increased deficits have a greater impact on the overall supply of funds to firms (through the cost of borrowing/investing) Summary based on proposal -Under both the Keynesian and Neoclassical models (TPC models) -increase revenue losses over the first 10 years by about $0.4 trillion (lower bound, not shown) to $8.2 trillion -increase the losses over the second 10 years by about $1.8 trillion (not shown), to $14.9 trillion (figure 1).

Social Security Benefits

Social Security: pays cash benefits to retired and disabled workers and their families and to the families of deceased workers Federal old-age and survivors insurance (OASI) Federal Disability Insurance (DI) - cash program that provides benefits to replace a portion of earnings lost due to a severe disabling condition that can be expected to last for 12 months or result in death. How is Social Security Funded? -FICA - Federal Insurance Contributions Act requires payments of the payroll tax by employees and their employers Workers pay 6.2 percent of their earnings up to $132,900 a year in 2019. The cap on taxable earnings generally rises each year with the national average wage index, however, if there are no COLA adjustments (based on the CPI-W) taxable earnings do not increase by law The FICA taxable wage limit was $128,400 in 2018 The FICA taxable wage limit will be $137,700 in 2020 Employers pay a matching amount for a combined tax of 12.4 percent of earnings. The OASDI tax rate for wages is set by statute. Self-employed persons pay both the employee and employer share for a total 12.4 percent. Half of this tax (the employer share) is a deductible business expense for income tax purposes. Higher-income Social Security beneficiaries pay federal income taxes on their benefit income, and these taxes help pay for Social Security.

Social Policy Affects All

Social policy affects all people along the entire income spectrum -Employee provided health benefits -Unemployment insurance -Free public education Medicare

What is an entitlement?

Some examples of entitlement programs, at the federal level, in the United States, would include: -Social Security -Medicare -Medicaid -most Veterans' Administration programs -federal employee and military retirement plans -unemployment compensation -food stamps -agricultural price support programs

Median Household Income

Some recent numbers in the U.S. to give you context: -Median household income in 2017: $61,372 -50% of median income, then, $30,686

Welfare under AFDC

State powers -Set their own benefit levels -Established (within federal limitations) income and resource limits -Administered the program or supervised its administration -States were entitled to unlimited federal funds for reimbursement of benefit payments, at matching rates. -States were required to provide aid to all persons who were eligible. ENTITLEMENT

Welfare under TANF

State variation in policies -Lifetime limits on welfare -Federal limit is 60 months (5 years) -9 states opted for shorter time limits --Florida: 48 months --Utah: 36 months --Arkansas: 24 months Exemptions for hardship cases -17 states provide an exemption to "verifiable" victims of domestic violence -7 states provide an exemption if caring for an infant under a few months old State variation in policies Family cap policies -21 states imposed a family cap that limit or deny additional benefits to families who have a child while on TANF -Added based on the theory that families have additional children to increase the size of their welfare check -Research has not revealed any significant, robust relationships between AFDC/TANF payment amounts and fertility.

What can Super PACS do?

Super PACS can raise unlimited money from corporations, associations and individuals, unions and spend that money to advocate for candidates Super PACS must report donors to the FEC Super PACS do not donate directly to candidates Super PACS are barred from working directly with a candidate campaigns

Class Plan

Supplement historical reading (Jansson) with a focus on -philosophical trends ----examples of their manifestation ----make explicit the relationship with policy development -demographic trends ----population growth in cities ----expansion/movement -land policies ----examples ----ramifications

Means-tested programs

Supplementary Security Income (SSI) - CASH BENEFIT --Federal aid to the aged, blind, disabled --Uniform national eligibility Temporary Assistance to Needy Families (TANF)- CASH BENEFIT --Federal funds to state as a block grant/State MOE funds General Assistance - CASH BENEFIT/IN-KIND IN SOME PLACES --State funds/not available in every state Medicaid - IN-KIND BENEFIT --Health insurance --Federal/State funds SNAP - "NEAR CASH"/ENTITLEMENT --Vouchers/EBT card for food items --Federal funds/administered at the state level --ABWD work requirements

How do benefits vary by groups served?

TANF - Strong behavioral components around marriage and family formation -Lifetime limits -Work requirements -State discretion around eligibility, benefit amount -Marked variation across states ---Benefits range from $215 for a family of three (AL) to $628 for a family of three (WI) -Benefits are not adjusted for cost of living so the value erodes over time

Marketplace coverage under ACA

The ACA also provides federal premium tax credits for individuals with incomes between 100% and 400% FPL ($19,790 to $79,160 for a family of three in 2015) who are not eligible for other coverage and who purchase insurance through the Marketplaces.

Methodology of poverty thresholds

The Department of Agriculture's 1955 Household Food Consumption Survey revealed that families of three or more persons spent about one third of their after-tax money income on food in 1955 A "multiplier" is used to adjust figures for families of various sizes This method assumed when food expenditures reached the cost of the economy food plan, the amount the family would then be spending on non-food items would also be minimal but adequate procedure did not assume specific dollar amounts for any budget category besides food Mollie Orshansky: 1/9/1915-12/18/2006

Economic Backdrop

The Great Depression of the 1930's signifies a crisis to the nation's economic life, surpassing previous downturns in severity, depth and magnitude -bank foreclosures -high unemployment -drop in GDP -price deflation -loss of family farms

Text...

The Iberians are believed to have been originally an African race, who thousands of years ago spread themselves through Spain over Western Europe. These remains are found in the barrows, or burying places, in sundry parts of these countries. The skulls are of ____ prognathous type. They came to Ireland, and mixed with the natives of the South and West, who themselves are supposed to have been of low type and descendants of savages of the Stone Age, who, in consequence of isolation from the rest of the world, had never been _____ competed in the health struggle of life, and thus made way, according to the laws of nature, for superior races.

Precursors to the Progressive Era

The Progressive Era is the first notable period of American reformers attempts to influence policy As we pointed out earlier, with the Freedman's Bureau as an example the very idea that the government should be involved in policy making was bold and deeply contested

History of Welfare

The Social Security Act, as part of the New Deal legislation created under President Roosevelt, established two types of cash benefits social insurance public assistance Social insurance programs included -a pension for retired workers (informally called Social Security) and Unemployment Insurance (UI) Public assistance programs for the poor included -Aid to Dependent Children (ADC), Old Age Assistance (OAA), and Aid to the Blind (AB).

FY 2018 Budget Figures

The budget proposes about $4.1 trillion in spending in FY 2018 Spending is in 3 categories 1. Mandatory (63%) - $2.58 trillion 2. Discretionary (30%) - $1.21 trillion 3. Interest on Federal Debt (8%)- $316 billion

Challenges to Keynesianism

The endorsement and use of Keynesian tools were accepted and used by both parties for decades after WWII. tensions about the proper size, role and function of government are on-going over time periods of reform are often followed by periods of retrenchment (backing away from policies)

Matching rates : $$ to states

The federal government reimburses the states for operating an AFDC program with matching funds. Federal financial participation is provided to the states at different rates for various activities. Administrative and training costs are matched at a 50 percent rate. AFDC benefit payment costs are matched under a formula which takes into account a state's per capita income relative to national per capita income. The federal matching rate for AFDC benefits may range from 50 percent for states with the highest per capita income to 83 percent for the state with the lowest per capita income.

Early America through the Progressive Era

The formation of American character, the growth of cities and the needs of a newly urbanized population

Readings: A step back to consider

The inherent logic in laissez-faire capitalism What is Russell suggesting? How can this help us think?

Market Income

The market delivers unequal income within and across countries. The difference between market income poverty rate and disposable poverty rate is what a country decides to do in terms of: -State provided benefits (pension, healthcare, childcare, etc.) that defray or cover these costs for citizens --Government action via programs and tax transfers

U.S. Poverty Measure

The official measure of poverty in the United States is framed in terms of family income. It is an absolute threshold to distinguish those who are poor from those considered to have enough for the necessities of life.

Reminder: what the OPM counts

The official poverty measure takes account of cash benefits from the government --such as Social Security --Unemployment Insurance (UI) benefits --Supplemental Security Income (SSI) --public assistance benefits (TANF), --workers' compensation benefits It does not take account of: --taxes (payroll taxes) --noncash benefits aimed at improving the economic situation of the poor (SNAP, housing benefits) --Refundable tax credits (EITC, Child Tax Credit) 2014 Poverty Rates: OPM vs. SPM SPM rates higher than OPM supplemental poverty measure

History of the poverty thresholds

The poverty thresholds were originally developed in 1963-1964 by Mollie Orshansky of the Social Security Administration Orshansky based her poverty thresholds on the economy food plan - the cheapest of four food plans developed by the Department of Agriculture the Agriculture Department described the economy food plan as being "designed for temporary or emergency use when funds are low." Orshansky also developed a second set of poverty thresholds based on the Agriculture Department's somewhat less stringent low-cost food plan, but relatively little use was ever made of these higher thresholds.

Culture of poverty - theories

The term "culture of poverty" was introduced by anthropologist Oscar Lewis, most prominently in his 1966 book, La Vida: A Puerto Rican Family in the Culture of Poverty, San Juan and New York. Lewis notes: "by the time slum children are aged six or seven, they have usually absorbed the basic values and attitudes of their subculture and are not psychologically geared to take full advantage of the changing conditions or increased opportunities that may occur in their lifetime" Policy analysts and others read accounts of the culture of poverty as evidence that the behaviors of the poor were crude, present-oriented, irresponsible and self-indulgent. Most importantly, these values and behaviors are transmitted from generation to generation in an unending "cycle of poverty". The poor were poor because they perpetually misbehaved. These behaviors are both a mark of poverty and the reason that the poor were chained to poverty, generation after generation. Between the 1960s and the present - this interpretation of the culture of poverty became a cornerstone of politics and debate around poverty though the term "culture of poverty" is not as regularly used.

Exceptions to consider...

There are a number of exceptions to this reasoning that can and do occur. When unskilled work is off-putting, dangerous, or unsatisfying, the supply of these unskilled workers will likely be reduced and higher wages may be necessary to command an adequate work force. Likewise, when controls prevent entry into less-skilled jobs, wages again may be higher than those of skilled workers. Finally, when the supply of skilled workers is high relative to the demand for a particular occupation -- wages may not be significantly (if at all) higher for highly educated workers. These exceptions aside, we typically assume that skilled workers will receive a positive return on the investments that they make in their human capital.

U.S. Poverty Measures

There are two slightly different versions of the federal poverty measure: -poverty thresholds -poverty guidelines The poverty thresholds are the original version of the federal poverty measure -updated each year by the Census Bureau Both the poverty thresholds and the poverty guidelines are updated annually for price changes using the Consumer Price Index for All Urban Consumers (CPI-U)

Beliefs about groups and policy

These beliefs would profoundly shape -the expansion of American colonists -the seizing of lands -the on-going use of slavery -broken treaties with the Native Americans -racial laws that systematically denied non-white persons legal rights -reactions to massive immigration -before 1880 most European immigrants came from Western, Northern Europe (English, Scotch, Irish, Dutch, German, Swedish, Scandinavians) -in the 1880's more immigrants began arriving from Southern/Eastern Europe (Italy, Greece, Turkey, Spain, Portugal, Austria-Hungary, Bulgaria, Romania, Poland, Russia) -this later group of immigrants were more likely to be Catholic or Jewish with different customs

Means-tested cash programs

Thinking tools.... The U.S. safety net has been described as "patchwork" and "confusing". Indeed, there are many programs with various acronyms to address certain needs: income supplementation, nutrition, medical care, early childhood intervention. The trick to understanding our social welfare state is being able to answer some core questions about any program. This will enable you to "get your head around" a particular program quickly by asking the most useful questions: Who does the program serve? How is the program funded? How is the program administered? Are there income or asset tests to determine eligibility?

The evolution of economic reasoning...

This is an important theme as Cochran and Malone note, the Great Depression called into question the very viability of the market-based system it was not clear that the chaos and lack of stability of the economy could be managed the theory of cycles, boom and bust and eventual recovery were no longer acceptable

Policy Levers

To bring the system into long-term balance congress has to either -Reduce benefits -Increase revenue or -Some combination of these two approaches, there is no other way Private accounts do not deal with the shortfall and are a separate issue so should not be conflated. Moving to a different system structure is a separate, very large conversation and would need an interim transition plan.

Poverty guidelines are used...

To determine program eligibility Programs using the guidelines -or percentage multiples of the guidelines (125%, 150%, 185% of guidelines) in determining eligibility include --Head Start --Supplemental Nutrition Program --National School Lunch Program --Low-Income Home Energy --Assistance Program --Children's Health Insurance Program

Unemployment Insurance

Type of benefit: Cash Partial wage replacement for those who have lost their jobs Social insurance Event conditioned (loss of covered employment) Not means-tested

Medicaid: Public Insurance

Type of benefit: in-kind means-tested categorical eligibility (this changed after the ACA in some states) Funding: jointly financed by state and federal government Administration: each state establishes and administers its own program determines the amount, type, duration and scope of services within broad federal guidelines must cover certain mandatory benefits, others are optional federal guidelines require certain groups are covered -qualified parents -children -pregnant women with low incomes -older adults with low income -people with disabilities with low incomes states can extend benefits to other groups The ACA changed the categories listed above to an income-test rather than only the specified groups. This is a large change for states that expanded their Medicaid programs.

Medicare

Type of benefit: -In-kind -Social insurance -Universal benefit -Entitlement -Event conditioned (age eligibility, disability) -Not means-tested pays for health care people 65 or > pays for health care for people <65 with certain disabilities people of all ages with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a kidney transplant). Magnitude -Medicare is the largest health program in the U.S. federal program In 2017 Medicare covered 58.4 million people 49.5 million 65 or > 8.9 million disabled Total expenditures 710.2 billion In 2018 Medicare covered 59.9 million people 51.2 million 65 or > 8.8 million disabled Total expenditures 740.6 billion ********************************* So, if the US has a population of about 327,000,000 people, then 59,900,000/327,000,000 = 18% of the US population are covered by and beneficiaries of the Medicare program "back of the envelope": 327,000,000 - 11,000,000 = 316,000,000 59,900,000/316,000,000 = 18.9% Finances Medicare's two trust funds Hospital Insurance (HI) Trust Fund (pays for Part A benefits) Supplementary Medical Insurance (SMI) Trust Fund (pays for part B and Part D benefits) Trustees of the Medicare program issue an annual report on the expected condition of the program's two trust funds over a 10-year (short-term) and a 75-year (long-term) period

Poverty theories: Structural

Underlying Assumptions 1. Structural forces drive poverty and inequality Rather than individual factors 2. Market incomes are unequal -This inequality should be tempered by government provision of core goods 3. Poverty and inequality are problematic -For individual outcomes -For society -For social cohesion

Social theory & ideology: How do we understand social problems?

We develop our understanding influenced by -philosophical and religious thought -Russell traces how medieval Christianity influenced western thought and became -secularized, or -in some cases, disassociated from the religious doctrine while maintaining the core beliefs

Review

We discussed how the social context, changing demographic trends or norms may impact the political context surrounding a program. We covered: Means-tested cash assistance programs: --Temporary Assistance for Needy Families (TANF) --Supplemental Security Income (SSI) --General Assistance (GA)

What can we know from what we observe?

We have implicit assumptions about why folks are in the predicament they are in. policymakers implicit and explicit assumptions are expressed in policy so - It really matters what the origins of a problem are assumed to be. We get the policy our assumptions support.

What do we know about the lived experience of poverty?

We may not understand what it means to live in poverty because: -we have not experienced it -we experienced it fleetingly -we experienced it under different conditions - it is not the same to be experiencing poverty as a child today as it was in, let's say, 2000, 1990 or 1970 -we have no reference point NOTE: it is always important to have a bit of humility about others lived experience

Looking back at AFDC

What did the program do? 1. Cash to families --Modified state by state (eligibility levels; benefit levels) 2. Low levels of cash assistance --Below poverty 3. An Entitlement 4. Automatic eligibility for Medicaid and other "in-kind" benefits 5. Modest Work Requirements: -JOBS mandated 20% of recipients in a state be mandated to work. 6. Modest Work Supports -JOBS program mandated higher "earnings disregards"; transitional child care and Medicaid; as well as job training, basic education and community work experience.

Poverty: definitions, measurement and working with data

What is poverty? it depends on how you define it as we have been discussing defining the problem is a political process the outcome has marked consequences How the U.S. government defines poverty will lead to --statistics about both the magnitude and scope of poverty --statistics about rates of poverty over time

What do you need to know...?

Where do you find out the factual data that should ground your conversation? The office of the Chief Actuary of Social Security makes projections about Social Security finances that are used in an annual report to Congress. in order to do so, assumptions about population growth, the performance of the economy, wages and unemployment must be made to develop estimates this is why you may hear different dates between political actors, it depends on which scenario the actor chooses to highlight

How does TANF differ from these other means-tested benefits?

Who is eligible Opinions about "deserving" vs. "undeserving poor", evolution over time Changes in norms around women/work/childcare Changes in the composition of poor women/children over time on the program Political support for the program has been more volatile --Poor mothers and children versus --Poor elderly (SSI) or --Working poor (EITC) How benefits are set and programs are funded

Government as central in the economic life of the nation

attempting to figure out how to respond to the Great Depression opened the door to Keynes' theories which ushered in a markedly different understanding of governments ability to directly affect the economy

Main features of General Assistance

eligibility requirements and payment levels for general assistance vary from state to state, and often within a state payments are usually at lower levels and of shorter duration than those provided by federally financed programs (ex. SSI) general assistance is administered and financed by State and local governments under their own guidelines

Fears of unions: government assistance to "put down" strikes

for many Americans, unionization fed a fear that "barbarians" had invaded the nation during a Cleveland steel strike, violent confrontations led local newspapers to attack the "un-American" Polish workers as "Ignorant and degraded whelps," "Foreign devils," and "Communistic scoundrels [who] revel in robberies, bloodshed, and arson." in 1886, a national strike called for changing the standard workday from 12-hours to eight 12,000 companies nationwide, 340,000 workers stopped work in Chicago police were trying to break up a large labor meeting in Haymarket Square, when a bomb exploded without warning, killing a police officer, police fired into the crowd, killing one and wounding many more -as a result of the riot, four labor organizers were hanged the hangings demoralized the national labor movement and energized management by 1890, Knights of Labor membership had plummeted by ninety percent the 1892 battle at Carnegie's Homestead mill became a model for stamping out strikes: hold firm and call in government troops for support

General Assistance - State Programs

general assistance is not usually known by that name Maryland and Rhode Island call it "General Public Assistance" more common is the term "General Relief", but very different names are used in some jurisdictions New Jersey calls the program "State Aid" Indiana uses "Township Poor Relief" Tennessee has three equivalent terms: "Poor Relief", "Emergency Relief", and "Paupers Relief"

Fiscal policy

government taxing or spending to stimulate or slow the economy

Poverty thresholds are used ...

mainly for statistical purposes preparing estimates of the number of Americans in poverty each year all official poverty population figures are calculated using the poverty thresholds

Super PACS

newer type of political action committee formed after 2 key federal court decisions which found that placing limitations on individual and corporate contributions to be unconstitutional violations of the First Amendment right to free speech

Human capital theory makes several assumptions...

skills gained through education and training can alter the wages individuals receive Research articles will often refer to this as "returns to education" If the returns to education vary by characteristics like race or gender; one would say that X group has a lower or higher return to education Put more concretely, every additional year of schooling would be associated with an X increase in earnings. keep in mind, a skilled worker can always enter the labor market for less skilled work the supply of skilled labor is generally less than the supply of unskilled labor, so we can expect higher wages for these workers

What, then, does this mean government should do?

the Keynesian solution to the inherent instability of the market is for government to actively manage the economy through fiscal and monetary policy government should intervene with fiscal and monetary policy to promote full employment, stable prices and economic growth

Strikes, unions and union busting

the depression of 1893-1894 triggered some of the worst labor conflicts in the country's history

Classical economics to Keynes

the idea that individuals acting in their own self-interest, would lead to a stable system has it's roots in Adam Smith's work ---assumes markets are inherently stable Keynesian macroeconomic theory represents a sharp departure from classical economics in that it assumes market economies are inherently unstable and that there is no self-correcting property in the market to return a depressed economy to growth and full employment

Significance of the New Deal

the rapid expansion of the federal government into social welfare New Deal and a collection of programs to deal with the many difficulties of the Great Depression New Deal as the beginning of the modern welfare state the changing nature of the office of the president as a policy-making entity under FDR whether New Deal policies, or, more likely the massive spending needed for WW II build up, the country enjoyed a strong economy post-WW II

What about working people during this period?

they were witness to the lavish lifestyle of the rich on display in cities labored in very poor working conditions job related injuries and death very high no incentive to check these problems by industry constant stream of untapped immigrant labor violent strikes and riots wracked the nation through the turn of the century for immediate relief, the urban poor often turned to political machines during the first years of the Gilded Age, Boss Tweed's Tammany Hall provided more services to the poor than any city government before it although far more money went into Tweed's own pocket corruption extended to the highest levels of government and folks knew this many working people had basic needs met through the corrupt local politicians who required their ongoing support

Structural economic analysis

top 1 % has all the wealth Huge disparities