Process of Policy Formulation

1. Process of Policy Formulation

3. Social Welfare - a Measure to Control the Poor • Short supply of labor force due to Black Death • Creation of the Statute of Laborers in 1349 that regulated the movement of laborers • Government control over employment -work or jail • Peasants’ Rebellion of 1381 • Statute of Artificers enacted in 1388 in England prevented movement from place of birth without permission • Increase in population, enclosure movement, lack of raw materials, low wages and inflation coupled with high unemployment • Production of trade goods and money economy which involved accumulation of profits beyond the cost of raw materials, labor and investment • Dawn of capitalism and social welfare became part of the labor policy • Work became a moral issue; responsibility for poverty was placed on the worker’s shoulders • Calvinism and the Protestant work ethic • Elizebethan Poor Laws of 1601-almshouses and workhouses

4. Questions for consideration in policy formulation • Is the policy compatible with the current mood of the nation? • Does it reflect the prevailing values in society? • Is it a politically viable policy? Will it create an uprising or other social/political problems? • Is it legally sound? Rational? Based on empirical data? • Will it satisfy the predominant interest groups? • Does it promote justice and equality? • Is it an economically feasible policy that provides the best option among other options available? Is it efficient?

5. History of Social Welfare Policy • Feudalism and embeddedness-obligation of honor • Population increase and emergence of agricultural technology • Reduction of profits for the Lords- emergence of tenant forming • Individualism and alienation - the cessation of obligation of the Lords to protect the serfs • Mechanization and Lords’ control of equipment such as grinding mills which monopolized the use of labor saving devices and the emergence of user fee • Church’s deep involvement in governance and distribution of charity • Continuation of private charity and the service by the clergy, and the guilds • Displacement of agricultural workers, growing piecework industry, hard work routines, population increase and famine resulted in associating the poor with moral degradation and witchcraft • Poverty became a crime

6. Social Security-A drowning Ship? • Is the most expensive program in jeopardy because of the reduced dependency ratio or because of COLAS? • Will means testing the program save the drowning ship? • How to assure intergenerational equity? • Can it become a targeted program? • Can the tax system be used to reduce the stigma if means test becomes a criteria to receive benefits from social security? • How can SSI and SSD be effectively used to meet the needs of poor social security recipients?

7. What is social security? • Designed to help deal with economic insecurity • Income maintenance program that helps offset the income losses that accompany disability, death or old age • Principles of : • Universality • Equity • Adequacy • Less stigmatization • Saving Incentives • Integration

8. Is social security a “chain Letter”? • Declining rates of return • Poor sustainability of benefit promises • Universality principle that favors the wealthy • Younger generation worried about inability to keep promises by the government • Political nature of the issue • Public discourse based on inaccurate information • Entitlement security • Perverse incentives • Actuarial uncertainty

9. Cost Effectiveness • A method for quantifying costs of services in relation to the goal achievement. • No monetary value is placed on the desired goals