Social Safety Nets
ADR argues that the "net effect" of the Social Security system is to "redistribute income across generations." Explain what this means.
-Because the program is paid for to a substantial degree by those who are currently working.
How many Americans currently have no health insurance coverage? How many citizens in other OECD countries are not covered by health insurance? Assuming that the new health care and insurancy system goes into effect as currently planned, how many of the previously uninsured will be provided access to health care? (526)
-Before 2010, 46 million people did not have health insurance coverage. OECD countries have Universal health care coverage, so everyone is covered. Assuming the system goes as planned, 3/4 of previously uninsured will have health coverage.
What is CHIP?
-CHIP-Children's health insurance program, is a program that pays for medical care for poor children not covered by Medicaid. Funded jointly by states and nat'l gov't.
What impact does federalism have in shaping the American social welfare system? (527)
-Federalism is responsible for the administrative complexity of our welfare system. The result is great variation in the states among eligibility requirements, benefits and rules
Which income groups benefit the most from the American welfare state? Which age group benefits the most? (511-512)
-Income group: The nonpoor b/c they go mainly towards those who have been employed the longest, had the highest incomes and paid the maximum level of payroll taxes. -Age group: the elderly (medicare, social security)
What is Medicaid? Of those who fall below the government's poverty line, what percent is covered by Medicaid at any one time? Under what circumstances do middle-class people end up relying on Medicaid?
-Medicaid is a public assistance program that provides a specific range of medical services for people who are characterized as medically indignant. Medicaid is funded partly by states and partly by federal gov't. -Less than one half of people who fall below the government's poverty line are covered byMedicaid in any given time -Middle class people rely on medicaid to pay for nursing home care for those who exhausted their savings.
What is "unemployment insurance"? Who pays the premium for the insurance? (517-518)
-Part of the Social Security Act of 1935, not funded by payroll tax but by employers. Idea is to give people who have been laid off a limited amount of time while they look for new jobs (26 weeks)
What is the current poverty rate among the elderly today? According to the Center for Budget and Policy Priorities (a non-partisan research institute), approximately what proportion of the elderly would be in poverty if they did not receive their Social Security payments? (519)
-Poverty rate among elderly today= less than 9% -Center for Budget and Policy Priorities estimates that almost 50% of all seniors would be below poverty line without medicare
What impact does "racial divisions," "political culture," and "business power" had in explaining the differences between the U.S. and European social welfare systems? (527-528)
-Racial divisions: Europe's greater propensity towards welfare states is b/c homogenous societies b/c people view the recipients to be more like themselves. -Political culture: American political culture, competitive individualism goes against a generous and comprehensive welfare system. States with big welfare systems are ones with high taxes and centralized gov't, something that many Americans are against. -Business power: Business community has been a voice for low taxes and limited benefits and for voluntary efforts over gov't responisibility.
What is the difference between the two basic types of safety net programs, "social insurance" and "means-tested" (or "public assistance")? What is an "entitlement" program? (510-511)
-Social insurance: typified by Medicare and social security, when you donate to an insurance trust fund by way of a payroll tax based on earings and receive benefits based on their lifetime contributions. -Means Tested: Benefits are distributed on the basis of those who can prove that their income is low enough to qualify.--->Public assistance -Entitlement Programs: Payments that are made automatically to people who meet certain eligibility requirements ie. Medicare.
What is TANF? How is it different from its predecessor, AFDC? (519-520)
AFDC= Aid to families with dependent children. Mostly everyone hated AFDC. TANF= temporary assistance to needy families, replaced AFDC, ended welfare as we know it. Its main changes were: Welfare was no longer a federal entitlement, design and administration of welfare was turned over to the states, states get block grants to help them finance welfare system, head of every family receiving welfare has to work within two years of receiving benefits and limited to 5 years of receiving benefits, Unmarried teenage parents can only get benefits if they go to school and live with an adult, states must provide Medicaid and CHIP health services.
According to the authors, why is it politically difficult to enact changes to the Social Security system that would "solve" the long-term problem to the trust fund? (515)
Because Older Americans do not want to have to wait longer to retire. Older Americans vote at higher rates than younger Americans, so these solutions, which would impact social security recipients and older Americans are unlikely to be run through congress. Because they are unpopular moves that would require people to sacrifice. In addition, the deep partisan divide of congress makes this difficult, as Democrats think that the system is relatively healthy and Republicans think that it is flawed
What are the "structural factors" that lead rich democracies to have extensive safety net programs?
Globalization of economies in rich democracies leads to migration of jobs where there is cheaper labor-->unemployment -Rich Industrialized societies are mobile, do not support families, therefore they have to provide more welfare for the sick and elderly. -People live longer b/c sanitation and clean water,
What proportion of the federal outlays is spent on Social Security and Medicare together? What proportion of outlays is spent on means-tested programs? (511)
Medicare and Social Security= 31% -Means Tested programs= 14%
What is Medicare?
Medicare is an entitlement that helps pay for health care for people 65 and over.
What is a welfare state?
Nations, like America, that provide a broad range of safety net programs. All rich democracies are welfare states.
In comparison to other countries, what types of people in the United States tend to benefit from social welfare programs? (525)
Social Welfare in the U.S. favors the elderly while others distribute more evenly across age groups.
What percentage of GDP does the United States devote to social welfare? How does this compare to the Scandinavian countries? (524-525)
Social welfare is 16 percent of GDP in US and 1/3 of GDP in Scandanavian countries.
Why is paying for Medicare "over the long-term" problematic?
The American Population is getting older; Health care costs have been rising faster than the payroll tax that supports medicare part A, and general tax revenues that support B, C, and D.