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Social Welfare. Chapter 17. Majoritarian Politics. Nearly everyone benefits, and nearly everyone pays The opinion of majoritarian politics never really changes because it would be too risky Ex.: social security and Medicare No means test- this means the benefits are available to everyone.
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Social Welfare Chapter 17
Majoritarian Politics • Nearly everyone benefits, and nearly everyone pays • The opinion of majoritarian politics never really changes because it would be too risky • Ex.: social security and Medicare • No means test- this means the benefits are available to everyone
Client-Centered Politics • Few people benefit, yet everyone pays • Changes with popular opinion • AFDC- aid to families with dependent children • Very popular in 1935 after the war because people had sympathy for widowed mothers • 30 years later, it appear women were taking advantage of the program, and the people no longer supported it • Ex.: Medicaid and Food stamps • Means test- you must fall below a certain income level to qualify for benefits
Social Welfare • 3 things shaped social welfare policy • Americans have a restricted view on who deserves to benefit • America has been slower than others to embrace the welfare state • We insist states need to play a great role in running welfare programs
Social welfare cont’d. • Americans base welfare on giving “help to the deserving poor”, not based on everyone getting their fair share • America passes social security act in 1985, after 22 nations already had it • It was not clear until the 1930’s that the U.S government could do anything with the social policy
Social Security • Insurance for the unemployed and elderly • insurance program- created for the unemployed and the elderly • Everybody would be taxed and all would be eligible for insurance • Assistance program- created for the blind, dependent children, and aged • Only poor ( by the means test) are considered for assistance
Medicare • It is very controversial as to which programs would be covered • A majority of the Ways and Means committee opposed national health care programs • By early ’60’s, most favored it and with heavy democratic support began to draft a Medicare plan • It was only for the elderly • It didn’t cover doctor visits • Included Medicaid for the poor
Problems with Medicare • Main problem: as the population ages, there are not enough people to pay taxes • 3 ways to solve this problem: • Raise retirement age, freeze benefits and raise social security taxes • Privatize social security or invest in stock market • Use 1st and 2nd options, but permit citizens to invest in mutual funds
Problems with Medicare Cont’d. • The program costs a lot of $, but it is not very efficient • The fund will eventually run out of money • People take advantage of program with unnecessary doctor visits, and doctors overcharge • This problem can be solved by: • Having doctors work for the government • Let elderly take their share of Medicare money and invest it in private health insurance companies
Problems with Medicare Cont’d. • As of now, health care in our country is not a top priority; terrorism is #1 • Politicians will continue to propose new health care legislation as our current system struggles to produce success
Client Welfare Programs • AFDC was created because of the depression to help widowed and single women • It allowed states to define need and administer the program • There were many government restrictions: • States were told how to calculate income • To give Medicaid to AFDC recipients • Set a job-training program
Client Welfare Cont’d. • Programs • Food stamps • Free school lunch • Housing assistance • Earned income tax credit • Cash grants were given to poor, working parents
Problems • The program irritated everyone • There were too many rules • The benefits were going up and people were taking advantage of it • Most women were never married, or divorced and they were just using the $ • 2/3 of the women on the program at any given time had been on it for 8 years or more • In 1996, the program was abolished
Majoritarian Politics • Both cost and benefit were widely distributed • It will most likely be adopted if the benefits exceeds the cost • Big debate whether it was legitimate for the federal government to provide these services • Nothing in the constitution authorized such programs • Argument that medical care was private • Liberals swept the house, and the programs passed
Client Politics • Not a large cost, benefits a small group • Most people believed able-bodied people should work for their benefits • People’s opinion of deserving welfare recipients has continually lessened • TANF (temporary assistance for needy families) • People received job training and education (service strategy) • Preferred over income strategy (giving ppl. $)
