AP US Government - Chapter 18

Transcription

1 AP US Gv Chapter 18 AP US Gvernment - Chapter 18 Types f Plicy Dmestic Plicy A plicy that invlves chice-taking regarding issues and activity within a natin s brders Scial plicy, envirnmental plicy, healthcare, educatin, etc. Freign Plicy A plicy that invlves chice taking, but additinally invlves chices abut relatins with the rest f the wrld Sanctins, war, embarges, aid, etc. Mnetary Plicy The manipulatin f the supply f mney in private hands by which the gvernment can cntrl the ecnmy Cntrlled by the Federal Reserve Fiscal Plicy The plicy that describes the impact f the federal budget taxes, spending, and brrwing n the ecnmy Cntrlled by Cngress and the president What is Scial Plicy ad Why is it s Cntrversial? Scial welfare plicies prvide benefits t individuals thrugh: Entitlement prgrams: gvernment benefits that certain qualified individuals are entitled t by law, regardless f need Means-tested prgrams: gvernment prgrams nly available t individuals belw a pverty line Incme, Pverty and Public Plicy Wh is getting what? Incme: amunt f funds cllected btwn any 2 pints in time Incme distributin: the shares f the natinal incme earned by varius grups Wealth: value f assets already wned One third f America s wealth is held by 1% f the ppulatin Wh is pr in America? The pverty line: cnsiders what a family must spend fr an austere standard f living 36.5 millin Americans abut 12.3% - were pr in 2006 Feminizatin f pverty: high rates f pverty amng unmarried wmen Page 1 f 6

2 AP US Gv Chapter 18 What part des gvernment play? Taxatin Prgressive tax: peple with higher incmes pay a greater share Our current incme tax system Prprtinal tax: all peple pay the same share f their ncme Flat tax Regressive tax: burden falls relatively mre heavily n lw-incme grups ppsite f a prgressive tax Prprtinal taxes are accused f being regressive taxes Earned Incme Tax Credit: negative incme tax that prvided incme t very pr peple in lieu f charging them incme tax Gvernment expenditures Transfer payments: benefits given by the gvernment directly t individuals Sme transfer benefits are actual $, such as Scial Security entitlements Other transfer benefits are in kind benefits where recipients get a benefit withut getting actual $ such as fd stamps means-tested Page 2 f 6

3 AP US Gv Chapter 18 Table 18.2 The Majr Scial Welfare Prgrams Prgram Descriptin Beneficiaries Funding Entitlement Prgrams Scial Insurance Scial Security Mnthly payments Retired r disabled peple and surviving members f their families Payrll tax n emplyees and emplyers Medicare (Part A) Partial payment f cst f hspital care Retired and disabled peple Payrll taxes n emplyees and emplyers Medicare (Part B) Vluntary prgram f medical insurance (pays physicians) Persns 65+ and disabled Scial Security beneficiaries Beneficiaries pay premiums Unemplyment Insurance Weekly payments; benefits vary by state Wrkers wh have been laid ff and cannt find wrk Taxes n emplyers; states determine benefits The Means-Tested Prgrams Medicaid Medical and hspital aid The very pr Federal grants t state healthcare prgrams Fd Stamps Cupns that can be used t buy fd Peple whse incme falls belw a certain level General federal revenues Temprary Assistance fr Needy Families (TANF) Payment Families with children, either ne-parent families r, in sme states, tw-parent families where the breadwinner is unemplyed Paid partly by states and partly by the federal gvernment Supplementary Security Incme (SSI) Children s Health Insurance Prgram (CHIPs) Cash payments Subsidies fr insurance Elderly, blind, r disabled peple whse incme is belw a certain amunt Pr families with children General federal revenue Federal and state revenues Page 3 f 6

4 AP US Gv Chapter 18 Helping the Pr - Scial Plicy and Pverty Welfare as we knew it Scial Security Act f 1935: first majr step by the federal gvernment t help prtect peple against abslute pverty Set up Scial Security prgram and AFDC, a natinal assistance fr pr children President Jhnsn declared a war n pverty and created many new scial welfare prgrams Great Sciety Pverty was nt calculated by the gvernment befre this prgram Reagan cut welfare benefits and remved peple frm benefit rlls Cnservatives argued that welfare prgrams discuraged the pr frm slving their prblems Attitudes tward welfare became race cded the belief that mst peple n welfare are African Americans War n Pverty Ecnmic Opprtunity Act f 1964 The Idea because it is right, because it is wise, and because, fr the first time in ur histry, it is pssible t cnquer pverty (Lyndn B Jhnsn, March 16, 1964) An uncnditinal war n pverty was declared Ecnmic Opprtunity Act, Hw will it wrk 5 pint plan ½ millin underprivileged yung Americans will be given the skills and educatin t find wrk Creatin f Jb Crpratin Each American cmmunity can develp its wn plan t fight pverty Cmmunity actin grups Yu can enlist t help win the war n pverty Wrkers and farmers will be given the pprtunity t break ut f and escape pverty Lans and jb training Creatin f the Office f Ecnmic Opprtunity: natinal headquarters fr the war n pverty Cst By 2002, $7 trillin Ending Welfare as we knew it : the Welfare Refrms f 1996 Persnal Respnsibility and Wrk Opprtunity Act Each state t receive a fixed amunt f mney t run its wn welfare prgrams This is an example f devlutin, as the gvernment is giving pwer back t the states Page 4 f 6

5 AP US Gv Chapter 18 Peple n welfare wuld have t find wrk within 2 years Lifetime limit f 5 years placed n welfare AFDC changed t Temprary Assistance fr Needy Families (TANF) Welfare rlls declined, even thugh incme f TANF recipients is still lw Living n Brrwed Time: Scial Security The New Deal, Elderly, and the Grwth f Scial Security Scial Security has grwn rapidly since 1935, adding Medicare in 1965 Emplyers and emplyees cntribute t the Scial Security Trust Fund the bank accunt int which Scial Security cntributins are depsited and used t pay ut eligible recipients The trust fund will sn be in the red as the rati f wrkers t beneficiaries is narrwing *Nte* Scial Security is a pay-as-yu-g system The Future f Scial Security The prblem: wrkers grwing slwly, while the retired ppulatin is grwing rapidly At sme time currently 2008 payuts will exceed incme Slutins f cutting benefits r raising taxes are hard chices Hw Gerge W. Bush tried and failed t refrm Scial Security Bush prpsed diverting 2% f Scial Security cntributins t private retirement funds private savings accunts Prblem: Scial Security trust fund wuld run ut f mney very quickly as peple put their mney int private savings accunts r, gvernment wuld have t brrw trillins f dllars Scial Security refrm failed Scial Welfare plicy elsewhere Many industrialized natins are mre generus than the U.S., but the tax rates are higher in thse cuntries than in the U.S. Other cuntries (especially Eurpe) have wrked t refrm their welfare prgrams, as their prgrams are in truble, t Understanding Scial Welfare Plicy Scial welfare plicy and the scpe f gvernment The grwth f gvernment has been driven by the grwth f scial welfare plicies, which grw generatin by generatin Demcracy and Scial Welfare The U.S. has the smallest scial welfare system Cnsiderable unequal plitical participatin by thse that use the prgrams Elderly are well-rganized and influential; pr are nt Page 5 f 6

6 AP US Gv Chapter 18 Immigratin and Scial Plicy Myths abut immigratin Mst are (nt) illegal immigrants Mst are (nt) frm Mexic Mst are (nt) cnsuming federal benefits while (nt) aviding taxes Immigratin tday 13% f Americans are first-generatin immigrants Many are admitted because f high skills and educatin Immigratin plicy and plitics Immigratin has had little supprt thrughut American histry Illegal immigratin is a new issue, as the distinctin btwn legal and illegal immigratin did nt exist fr the century f American histry Up till 1924: yu were a citizen the day yu entered Illegal immigratin has been a majr thugh difficult issue in presidential plitics Washingtn N general immigratin plicy until the 20 th century Cngress banned Chinese immigratin in : quta system favrs nrthwestern Eurpeans and discriminates against thers (including Eastern Eurpeans) Immigratin frm Latin America climbs after Wrld War II Simpsn-Mazzli Act (1986) Path t citizenship ( amnesty ) fr existing illegal immigrants 3 millin immigrants became citizens Emplyers frbidden frm hiring illegal immigrants but they cannt challenge dcumentatin Despite several prpsals, n majr plicy changes since and the states States are hardest hit by the csts f illegal immigratin Prpsitin 187 (Califrnia) cut ff public services t illegal immigrants; fund uncnstitutinal Sme states punish emplyers by taking away business licenses Many battles ver cllege tuitin breaks Page 6 f 6