Government and the Economy

Chapter 23Section 3

Government, the Economy and You

Government, the Economy and YouIncome Inequality

Three Influences on IncomeIncomes differ for several reasons. Education, family wealth, and discrimination are common reason for income differences

Education- Level of education has a major impact on a person’s income.

Family Wealth- Access to more opportunities.

Discrimination- - Equal Pay Act of 1963, - Civil Rights Act of 1964 - Opportunity Act of 1972 - Americans with Disabilities Act

Welfare ProgramsProgram Definition

Food Stamps

Women, Infants, and Children (WIC)

Income Assistance

Supplemental Security Income

Temporary Assistance to Needy Families (TANF)

Government, the Economy and YouPoverty

Poverty Guidelines and programs

People in Poverty- Annual income $9,800. 37 Million people.

Welfare Programs

Food Stamps- To alleviate hunger and malnutrition.

Women, Infants, and Children (WIC)- Provides help with nutrition and health care to low-income women , infants and children up to age 5.

Government, the Economy and YouPoverty Continued

Income Assistance- Pays cash to certain people.

Supplemental Security Income (SSI)- Payments to blind or disabled people and age 65 and older.

Temporary Assistance to Needy Families (TANF)- Families who need help because a parent is dead, disabled, or absent.

Workfare- A term used to describe programs that require welfare recipients to exchange some of labor in exchange for benefits.

Government, the Economy and YouPoverty Continued

Tax Policies

Progressive Income Tax- The tax rate is lower at lower incomes and higher for higher incomes.

Earned Income Tax Credit (EITC)- Gives tax credits and even cash payments to qualified workers. (20 Million people)

Questions1. How is workfare different from welfare?2. What is compensation? Under what circumstances

does someone receive compensation?

HOMEWORK:3. Write 1 page aimed at students who are thinking about

dropping out of high school. Use what you have learned in this lesson and this year to convince them to stay in school. Remind them that dropping out has serious economic consequences, and explain what they are. (Persuade/Argue in your essay to stay in school)

Government, the Economy and You

Government Programs