Welfare and Education Policy

AP U.S. Government and Politics

Politics of Policy• Political agenda – “what people are trying to do.”– President Obama – determined to change nation’s

healthcare system.• Obama wanted a plan where government had more control

over healthcare.• Republicans opposed this as they wanted to leave the majority

of healthcare issues in the hands of private businesses.

– Affordable Care Act signed into law in 2010.• Supreme Court upheld most provisions as constitutional in

National Federation of Independent Business v. Sebelius (2012).

– Most provisions set to begin by 2014, all by 2020 despite America being divided on support of the act.

Poverty in America

• Poverty is a significant and persistent problem in U.S. – Families below the poverty line are considered poor and

eligible for certain forms of public assistance.• 2010 – poverty line was about $22,000 for a family of four.

– 1/7 of Americans live below the poverty line.• Poverty is especially apparent among single-parent homes, and

among minority group members.– Poverty exists in rural areas as well as urban areas.– U.S. has the highest level of poverty among advanced industrialized

nations.

Politics and Policies of Social Welfare• At one time, the federal government was not

involved in social welfare policy.– This approach reflected the idea of negative government,

the idea that government governs best by staying out of people’s lives.

• The Great Depression changed this outlook.– The New Deal altered Americans’ view of government,

leading to a belief in positive government.• Positive government is the belief that government intervention

is necessary to enhance personal liberty and security when individuals are impacted by economic and social issues beyond their control.

• Democrats have traditionally favored positive government and Republicans have traditionally favored negative government. – Republicans opposed Lyndon Johnson’s Great Society program and most

voted against Medicare and Medicaid.– Democrats voted against the 1996 Welfare Reform Act, which was designed

to cut welfare rolls and costs.

– Despite different views on social welfare issues, the parties must work together because millions of Americans depend on the government for benefits.• Transfer payments are government benefits given directly to

individual recipients, like retirees’ social security checks.• Most social programs are entitlement programs, meaning that any

individual who meets the requirements is entitled to the benefit.– Ex. Social Security benefits.

• Individual benefit programs fall into one of two broad groups: social insurance programs and public assistance programs.

Social Insurance Programs

• Over 50 million Americans receive benefits from social insurance programs.

– Social security, Medicare, unemployment insurance, workers’ comp.

– These programs are known as social insurance, because eligibility is restricted to people who pay special payroll taxes while they are working.

• Social security is the main social insurance program.– It is given to retirees and funded directly by the federal

government.– Began in 1935 (part of New Deal) and is funded through

payroll taxes on employers and employees.

• Most Americans favor current or higher levels of social security benefits.• American people qualify for social security by paying taxes

during their working years, but the money they receive is based on taxes paid by current workers.– As people live longer, there will be fewer workers relative to retirees,

meaning that the inflow of payroll taxes will be lower than the outflow of benefits to retirees.

– Unemployment insurance provides benefits for workers who lose their jobs involuntarily.• Unemployment insurance is a joint federal-state program.• Benefits usually are terminated after 26 weeks, but Congress

can extend the eligibility periods in times of recession.

• In 1965, a liberal Congress created Medicare.– The program, which is funded mainly through payroll

taxes, provides medical assistance to the retired.• It does not cover all medical fees, but people have the option

of paying additional fees for increased coverage.

Public Assistance Programs

• Unlike social insurance, public assistance programs are available only to the financially needy.– A means test is used to determine eligibility.• Applicants must demonstrate that they are poor to get

assistance.

– These programs are often referred to as “welfare.”• Americans are far less supportive of public assistance than

they are of social insurance programs.• Many Americans believe that public assistance programs are

more expensive than they are.

Types of Public Assistance Programs– Supplemental security income is given to people who

have physical limitations on their ability to provide for themselves.• It is not widely criticized by the public.

– Temporary Assistance for Needy Families (TANF) attempts to reduce long term welfare dependency by limiting length of assistance and giving states incentives to place welfare recipients in jobs.• States are given block grants used to help poor families with

their needs and to develop programs that help the parents find employment.– The strict federal guidelines in which the state programs operate has

dramatically reduced the size of welfare rolls.

– Head Start is an education program focused on helping poor children at a young age.• It provides free preschool, but many eligible children are not

enrolled and it has not met its performance goals.

– Earned income tax credit (EITC) is a tax credit given to people who work full time and still need assistance.

– In-kind benefits are designed so that the recipient uses the assistance in a specified way.• Examples: food stamps, rent vouchers

– Medicaid provides health care for the poor.• It is based on need and funded by tax revenues.• As health care costs increase, so has the cost of Medicaid.• It consumes about half of all public assistance dollars spent.

Culture and Social Welfare

• Many criticisms of welfare exist.• Many Americans feel people on welfare can get by without it if

they tried.• There is a political pressure to reduce welfare expenditures

and weed out undeserving recipients.

– The U.S. has the most inefficient welfare system in the Western World.• Welfare programs are very costly and it is difficult to determine

who is eligible, creating a heavily bureaucratic system.

– The U.S. spends as much, or more, on assistance for the nonpoor than it does for the poor.

• Social Security and Medicare exceeds the amount spent on all public assistance programs.

– The welfare program is criticized because many people feel that some recipients take advantage of it. • Many are on welfare for years without having a job.

– Why get a job if you can make more money on welfare?

Education in America• Since the 1960s, the federal government’s role in

education has grown.– Prior to this, education was largely the responsibility of state

and local governments.• Equality is a guiding principle of public education.– Despite this, all schools aren’t equal.

• The quality of education can depend significantly on the wealth of a community in which a child is educated.

– Educational attainment is related to personal success, as measured by income.

• Overall, more Americans than Europeans go to college, resulting in higher lifetime earnings.

Improving America’s Schools

• Per pupil spending is higher in the U.S. than it is in Europe.– Despite this, America’s students rank below students in

Canada and most European countries on standardized tests.• As a result of these test scores, policies aimed at strengthening

American schools were developed.

– School Choice provides students an option of leaving a poorly performing school in favor of one that might provide a better education.• Charter schools are publicly funded, but get to select their

curricula and students.– Public school supporters argue that charter schools drain their funds and

take away their top students.

– Vouchers also expand students’ options.• Parents are given a voucher, which can be used to pay part of a

students’ tuition at a private school.– Opponents of vouchers claim that they take resources away form

public schools and they are of little use to poor families because they only cover part of the tuition cost.

• Mandatory High-Stakes testing is another controversial topic in education.– No Child Left Behind (2001) – George W. Bush persuaded

Congress to pass this legislation requiring national testing in reading, math, and science.• Schools that show no improvement are subject to decreasing

federal funding and their students can be allowed to transfer.

• Opponents of NCLB argue that it forces teachers to teach to tests and undermines classroom learning.

– Many Democrats, who usually oppose NCLB claim that the program has failed to provide schools with enough resources to improve education.• Overall, Republicans are more supportive of NCLB and school

choice than Democrats are.

– Is it fair to tie school funding to test scores?

Promoting General Welfare in America– The U.S., unlike Europe, does not have government-paid

healthcare for all citizens, compensation for all unemployed workers, or retirement benefits for all elderly.

– American higher education is superior to that of Europe.• The differences in priority are based on historical

and cultural differences.• European democracy developed in response to centuries of

aristocratic rule, leading to social programs promoting equality.• Democracy in America is based more on personal liberty,

which helped develop Americans’ feelings of self-reliance.