Welfare Concepts
T/F: The U.S. developed their social welfare programs much later than our industrialized Western counterparts and it has a deep, historical fear of an overreaching central government.
True
T/F: Mandatory spending will change very little unless congressional action fundamentally alters the legal framework for Social Security, Medicare, and Medicaid.
True
This theory says that only a small group of people tend to dominate American policymaking and the political agenda by controlling most of the major institutions in the U.S.
What is elitist theory?
This is a type of poverty measure in the US that is based on cash income only. A household is considered poor if its cash income is below a certain dollar amount.
What is the absolute poverty measure?
This entitlement program, which no longer exists, provided small amounts of cash to families. It was given automatically to those eligible for Medicaid and other ‘in-kind’ benefits, and had modest work requirements and work supports.
What is AFDC (Aid to Families with Dependent Children)?
While programs like Medicare are funded solely through by federal government through payroll tax, programs like Medicaid are funded by this source(s).
What is a federal-state partnership or both federal and state governments?
Prior to this major event, most Americans didn’t think that the federal government could or should intervene in the economy. Most people thought the economy could take care of itself and the president shouldn’t interfere with unemployment, deflation, etc.
The Great Depression
This economic theory assumes that markets are inherently stable.
Neoclassical economic theory
This is a simplified version of the federal poverty threshold that is used for administrative purposes such as determining eligibility for federal programs.
What is poverty guildlines?
This cash benefit provides partial wage replacement for those who have lost their jobs through no fault of their own.
What is Unemployment Insurance?
This is a type of program or benefit that the federal government guarantees to all those who qualify. It includes programs such as Social Security (OASDI), Medicare, and SNAP.
What is an entitlement program?
The series of policies was considered the beginning of the modern welfare state. It was introduced in response to the Great Depression.
What is the New Deal?
This economic theory says that market economies are inherently unstable and that there is not a self-correcting property in the market to return a depressed economy to growth and full employment?
Keynesian economic theory
This is a poverty measurement used by the U.S. government that, unlike the Official Poverty Measure, includes cost-of-living adjustments by region.
What is the Supplemental Poverty Measure (SPM)?
This means-tested program provides cash benefits to poor aged, disabled, and blind people based on uniform, nationwide eligibility requirements?
What is SSI (Supplemental Security Income)?
This term refers to the government's use of taxing and spending to influence the economy.
What is fiscal policy?
These are the three categories of spending for the federal budget.
What are Mandatory Spending, Discretionary Spending, and Spending Interest on the Federal Debt?
This theory says that more skills, education, training, etc. lead to greater productivity and earnings. Essentially, the more educated you are, the better you’ll do.
What is Human Capital Theory?
This poverty measure is not commonly used in the US. It considers you poor if you make less than 50% of the median national income.
What is the Relative Poverty Measure?
This is a program that was introduced during the welfare reforms in the 1990s. Eligibility for this program and benefit levels vary by state.
What is TANF (Temporary Assistance to Needy Families)?
This type of retirement plan is defined by what the individual puts in. The money put in is often tax-deferred, puts the risk on the employee rather than the employer, and it is the most common offering among private employers.
Defined Contribution Plan
Which of the following are NOT in the mandatory spending budget? (There may be more that one answer)
Social Security, Medicare, Defense, Medicaid, UI, Student loans, Retirement programs for federal employees, Education programs
Defense & Education Programs
This is an individual explanation of poverty says that children learn their values and attitudes from their poor “subculture” and thus entrap themself in a cycle of poverty from generation to generation.
The culture of poverty
These programs, such as Medicaid, SNAP and TANF, are only available to those who meet income and asset limits.
What are Means-Tested Programs?
This cash benefit is administered by the tax code and provides a cash ‘refund’ to people (particularly those with children) who have a low or moderate income.
What is the EITC (Earned Income Tax Credit)?