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Three Key Feature of US welfare policy. Public attitude- who deserves to benefit Timing of the Welfare state Federalism. Patterns of Policy-Making. Majoritarian; entitlement every benefits, everyone pays No means test Social Security, Medicare Client based
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Three Key Feature of US welfare policy • Public attitude- who deserves to benefit • Timing of the Welfare state • Federalism
Patterns of Policy-Making • Majoritarian; entitlement • every benefits, everyone pays • No means test • Social Security, Medicare • Client based • few benefit, almost everyone pays • Means tested • Medicaid, Food Stamps, AFDC • Political Implications
Social Security • Previous system • FDR Plan • Insurance for unemployed and elderly • AFDC assistance for blind, dependents • Different administration and eligibility standards
AFDC: Erosion of Consensus • Increased federal requirements increase costs to states • Public opinion sours • Changing composition of AFDC recipients
Client Politics • benefits of proposal go to a relatively small group, but the public at large pays • Initially uncontroversial • Politics depends on legitimacy of recipients • AFDC recipients lose legitimacy
Majoritarian Politics • Requires popular and elite views • Once passed, becomes politically invulnerable • Save social security and medicare • remain good politics unless costs to voters exceed their benefits
1996 Welfare Reform • Personal Responsibility and Work Opportunity Act • Block grants • Time limits • Work requirements
Interpreting Welfare Reform • Balancing the budget • Not much saving • Poor bear brunt for budget cuts; are 24% of non defense spending, but 53% of reductions • Shredding the safety net? • State benefits varied under AFDC • Federal spending on poor not ended
Conclusion • Popular approval for social welfare programs is a function of benefits and costs • SS widely distributed benefits and costs, creates majoritarian politics • AFDC- narrowly distributed benefits; depends on public’s perception of worthiness/deserving of recipients • Save SS; End Welfare as we know it
Implications • Is bad policy good politics • Means testing social security • Assistance for college • Middle Class entitlements • Politically more attractive, also more expensive