Social Policy Part I Overview * Old Folks * Poor Folks * Uneducated Folks My Themes: I * "high priority" groups receive * Nationally administered, well funded programs * "low priority" groups receive * State administered, partially funded programs * Generally, the elderly are "high" and the young/poor are "low" priority Theme II: Spread the burden * Redistributive Politics: Take from some, give to others * Winners find ways to spread tax burdens widely (dissipate opposition) * Efforts to target costs on particular groups are often defeated * Example: repeal of drug coverage/long term health care for elderly in 1989 * Exception: taxing smokers & gamblers Social Security * The Great Depression set the stage * President Roosevelt ñ August 14, 1935 ñSocial Security Act passed as part of the "New Deal" * Pay cash benefits to "qualified" retirees * Mandatory federal tax (flat percentage) on employee and employer * 1977: benefits indexed to inflation (rise automatically) Not like insurance or retirement * Not like retirement plan * Doesn't "save and invest" * Current workers pay for current retirees * Who comes out ahead? * Not like insurance * Not optional: workers must pay * More like a simple wealth transfer * Tax now 6.2% x 2 * "Self employment tax" * Payroll tax is regressive Where did I put that Lockbox? * In 1940, life expectancy was 64 years, now it is 77 for men and 80 for women. * Workers per beneficiary: * 1950: 16 workers for every social security beneficiary * 2000: 3.3 * 2030: projected 2.0 * Growing costs predict "crisis" and tax increases * SS "Trust fund" doesn't really exist Welfare Policy * Part of "New Deal" "Aid to Families with Dependent Children" * States may participate, federal government pays "matching share" of program costs * Re-labeled "Temporary Assistance to Needy Families" in 1996 * Considerable differences among states, payments lag behind inflation * Emphasis on work incentives ("reforms" in 1988 and 1996) Poverty in U.S. 16.4 million children live in poverty*(22%) of all kids*16% of all people in poverty*How is poverty measured?*$11,344 Single*$22,113 Family of Four*Politicians often wonder aloud, how to help these kids without giving something to their (popularly perceived as lazy, good for nothing, drug abusing) parents? Recent Debate Over Social Security Reform *Some say "let workers invest some of own money" and privatize social security*Others say "make workers keep paying for the seniors" Health Care for Seniors * Medicare created 1964 * People who qualify for Social Security can receive government provided health insurance * Costs have risen drastically * fueling medical care inflation * affecting resource allocation * Health-care management 2003 Medicare Reform * Medicare part D * New optional prescription drug coverage * New optional preventive health care * New emphasis on private-insurance-administered plans for Medicare * Forbids importation of cheaper medicines (inserted at insistence of pharm. Lobby) * "donut hole" 2009 Patient Protection and Affordable Care Act (Obamacare) *Some Maybe Good Stuff*You can stay on your parents insurance until *age 26 *No Denial of Coverage for Preexisting Conditions or Lifetime $ Limits *for Coverage *Free Coverage of Some Preventative Care *Some Maybe Not So Good Stuff *Everyone required to buy health insurance or pay “tax” starting in 2014 *Expansion of Medicaid that could increase burden on states (if states opt in) *What if you cannot afford insurance? *Tax credits and subsidies provided for incomes up to $88k for a family of four Health Care for the Poor * Medicaid created 1965 * Medicaid, run by state, partially funded by federal gov. * Qualification more stringent than welfare Do you notice a pattern? * Programs for seniors are considered "necessary" * Programs for the needy are considered "necessary evil" Education: Federal Versus State * Historically, education was locally controlled * Growth of National Involvement * 1965: Fed $ to build schools * 1976, Dept. of Educ. created * 2001, No Child Left Behind Act. * Senator Ted Kennedy and Senator Judd Gregg. NCLB Based on 4 principlesStronger accountability for resultsIncreased flexibility and local controlExpanded options for parentsEmphasis on teaching methods that have been proven to work NCLB- Did it work? *Nearly half of nation’s schools failed to meet NCLB standards last year. *Results universally unpopular *Cheating Scandals *As of July 2012, President Obama has granted waivers on reading and math standards to 26 states School Politics * Equality of school funding (within states, under state constitutions, & NCLB) * Quality of schools * What to do? * Vouchers? * Stricter national performance standards?