3.4 Providing a Safety Net
What is TANF?
A Temporary Assistance for Needy Families program that aims to move people from welfare dependence to the workforce. In Florida we have a similar program called WAGES; Work and Gain Economic Self-Sufficiency, where the person in need is immediately given a job opportunity.
What is Medicare?
A federal health insurance program for persons over 65 or persons with permanent disabilities.
What is Medicaid?
A health insurance assistance program for some low-income people (especially children and pregnant women) sponsored by federal and state governments. Administered under the Social Security program, Medicare and Medicaid are enormously expensive programs.
What are cash transfers?
Direct payments of money to the poor, disabled, and retired people provided by state and federal government programs
Assume the poverty threshold for an individual is $11,770 a year. Based on a 40-hour workweek, how much would a single person need to earn per hour in order to be ABOVE the poverty threshold?
Hourly rate × 40h × 52 wks > $11,770 Hourly rate > $11,770 ÷ (40 × 52) Hourly rate > $5.66
What is unemployment insurance?
If you were to unexpectedly lose your job due to no fault of your own, unemployment insurance would pay a portion (taxable) of your previous income while you show proof you are making the effort to look for a new job.
What are the faith-based and community initiatives?
Proposals to welcome religious and charity community organization groups to work along the government to serve people in need
How does the free market economy share wealth?
The system rewards the most productive members of society. As a result, people with fewer opportunities to be productive (like lack of jobs and unlikely chance to be well educated) may suffer from poverty. Because the free market system tends to distribute wealth unevenly, the government runs programs to help people in need.
What is Social Security?
a federal insurance program created in 1935 that provides cash transfers to retired people and those who are unemployed or disabled. The program collects payroll taxes from current workers and then distributes the money to current recipients.
What is workers' compensation?
a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer for the tort of negligence.
What are in-kind benefits?
goods and services provided for free or at greatly reduced prices provided by the government such as food giveaways, food stamps, subsidized housing, and legal aid.
What is welfare?
government programs that started in 1932 that attempt to raise poor people's standard of living by collecting tax money and redistributing it to people with little or no income.
What is the poverty threshold?
the income level below which income is insufficient to support a family or household.
