SOCIAL WELFARE

SOCIAL WELFARE PROGRAMS• Two types• Majoritarian: Social Security and Medicare NO MEANS TEST• Client based: Medicaid, Food Stamps, AFDC MEANS TESTED• Different perceptions about programs• Client politics depends on the beneficiaries

being thought of as legitimate

SOCIAL WELFARE

SOCIAL WELFARE IN THE U.S.• Three distinctive features

1. Restrictive view2. Slower to embrace welfare state3. States/private enterprises play large

role

SOCIAL WELFAREMAJORITARIAN WELFARE PROGRAMS• Before 1929…• Things change during Great Depression• Some question Constitutionality of Federal Welfare• FDR created two types of programs1. Insurance program (majoritarian)2. Assistance program (client based)

Funds from taxes and administered by states

• SOCIAL SECURITY ACT (1935)• WAR ON POVERTY - “Economic Opportunity Act” – 1964• 1965 – Medicare: aged, eligible – Social Security, hospital

expenses, later – doctor’s bills• Also in 1965 – Medicaid: means tested (for the poor)

SOCIAL WELFARE

CLIENT WELFARE PROGRAMS: AID TO FAMILIES WITH DEPENDENT CHILDREN (AFDC)

• Part of Social Security Act (1935)• Federal aid to existing state programs• States define “need”, benefit levels, and administer program• Certain mandates attached (job training programs, childcare

programs for working AFDC parents, identify children’s fathers• Additional programs that were added on over the years for AFDC

recipients**• Food stamps, earned income credit (cash grant to poor parents

who are working), free school meals, housing assistance

**while all this was happening public opinion going against AFDC

SOCIAL WELFARE

WHY DID PUBLIC OPINION TURN AGAINST AFDC (welfare)?

• States dislike federal regulations• Public thought it contributed to break-up of families• Some felt it encouraged laziness• In 1970, about half of mothers on AFDC were there because

their husband had died or divorced them• By 1994, only about ¼ of AFDC mothers were widowed or

divorced• Over1/2 had never been married at all• Almost 2/3 of women on AFDC had been on it for 8 years or moreBOTTOM LINE WITH CLIENT-POLITICS• Benefits relatively small group• Public at large pays• Proposals will pass if cost is not perceived to be great and if

client is thought to be deserving

SOCIAL WELFARE

MAJORITARIAN PROGRAM OF SOCIAL SECURITY RETAINS SUPPORT DESPITE PROBLEMS

• Recipients viewed as deserving• 1950 – 14 workers for 1 retired• 1960 – 5 workers for 1 retired • by 1975 – 3 workers for 1 retired• Today?• Solvency?• At same time healthcare cost have increased

dramatically

SOCIAL WELFARE

TOWARD A NEW WELFARE POLITICS

• Biggest problem facing majoritarian welfare programs is their COST

• Biggest problem facing client-based welfare programs is their LEGITIMACY: who should benefit and how (in what form)

SOCIAL WELFARE

• How can the COST ISSUE of Social Security be handled??

• Raise taxes??• Reduce benefits??• Raise age - collect??• Privatization?? (Bush tried – what

happened?)

SOCIAL WELFAREPUBLIC SUPPORT FOR A.F.D.C.??• 104TH Congress turned AFDC back to the state• From categorical grant to block grant (T.A.N.F.)• Personal Responsibility and Work Opportunity

Reconciliation Act (1996)• State run Welfare programs• Temporary Assistance to Needy Families (TANF)• Find work (limit – 2 years)• Denies food stamps – legal aliens• Denies TANF – illegal aliens• 5 year lifetime cap• Identify fathers of TANF will be reduced• Initiate”Dead-beat-Dads” program• Mothers under 18 must live with parent and attend school

to receive TANF

SOCIAL WELFARE

ATTITUDES TOWARDS POVERTY AND WELFARE• See text• Poor – Non-poor (1985)• Black – White (1996)

POVERTY: PUBLIC PERCEPTION AND REALITY (text)

WHAT KIND OF SOCIAL WELFARE SHOULD THE U.S. PROVIDE TO:

1. HOMELESS2. IMMIGRANTS

SOCIAL WELFAREAID TO HOMELESS• Lots of disagreement• about seriousness of problem• Who is to blame?• What government responsibility should be?

AID TO IMMIGRANTS• Early 1990s, estimated 1.25 million immigrants entered country each

year• Most legally• Unknown fraction illegally• Not since the early decades of this century has the U.S. experienced

anything like this level of immigration• New immigrants from Mexico, China, and Haiti• 90% of today’s illegal immigrants are concentrated in 6 states:

Ca.,Fl.,Il, NJ,NY,Tx• DISPUTED EFFECTS ON ECONOMY