Chapter 3 Section 4Chapter 3 Section 4

Providing a Safety NetProviding a Safety Net

What role does the government play What role does the government play in fighting poverty?in fighting poverty?

What government programs attempt What government programs attempt to aid those facing poverty?to aid those facing poverty?

The poverty threshold is an income level below that which is needed to support families or households.

The Poverty ProblemThe Poverty Problem

The poverty threshold is determined by the The poverty threshold is determined by the federal government and is adjusted periodically.federal government and is adjusted periodically.

WelfareWelfare is a general term that refers to is a general term that refers to government aid to the poor.government aid to the poor.

Cash transfers are direct payments of money to eligible people.

Redistribution ProgramsRedistribution Programs

Temporary Assistance for Needy Families (TANF)This program allows individual states to decide how to best use federally provided funds.

Social SecuritySocial Security provides direct cash transfers of retirement income to the nation’s elderly and living expenses to the disabled.Unemployment compensation Unemployment compensation provides money to eligible workers who have lost their jobs.

Workers’ CompensationWorkers’ compensation provides a cash transfer of state funds to employees injured while on the job.

Other Redistribution ProgramsOther Redistribution Programs Besides cash transfers, other redistribution Besides cash transfers, other redistribution

programs include:programs include:In-kind benefitsIn-kind benefits• In-kind benefits are goods and services provided by the In-kind benefits are goods and services provided by the

government for free or at greatly reduced prices.government for free or at greatly reduced prices.

Medical benefitsMedical benefits• Health insurance is provided by the government for the Health insurance is provided by the government for the

elderly and disabled elderly and disabled (Medicare)(Medicare) and for poor people who and for poor people who are unemployed or are not covered by their employer’s are unemployed or are not covered by their employer’s insurance insurance (Medicaid).(Medicaid).

Education benefitsEducation benefits• Federal, state, and local governments all provide Federal, state, and local governments all provide

educational opportunities for the poor.educational opportunities for the poor.

In-Kind BenefitsIn-Kind Benefits

MedicaidMedicaid Food StampsFood Stamps Section 8 Housing AssistanceSection 8 Housing Assistance School Lunch programsSchool Lunch programs Low-Income Home Energy Assistance Low-Income Home Energy Assistance

ProgramProgram Head StartHead Start

Section 4 AssessmentSection 4 Assessment

1. 1. Welfare includes all of the following Welfare includes all of the following EXCEPTEXCEPT

(a) Temporary Assistance to Needy (a) Temporary Assistance to Needy FamiliesFamilies

(b) Occupational Safety and Health (b) Occupational Safety and Health AdministrationAdministration

(c) Social Security(c) Social Security

(d) Medicaid(d) Medicaid

AnswerAnswer

(b) Occupational Safety and Health(b) Occupational Safety and Health

AdministrationAdministration

2. Education programs make the economy 2. Education programs make the economy more productive bymore productive by(a) adding to human capital and labor productivity.(a) adding to human capital and labor productivity.(b) reducing taxes.(b) reducing taxes.(c) providing more jobs in manufacturing.(c) providing more jobs in manufacturing.(d) reducing injuries on the job.(d) reducing injuries on the job.

AnswerAnswer

(a) adding to human capital and labor (a) adding to human capital and labor productivity.productivity.