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© 2015 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 16
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-2
Poverty in America:The Nature of the Problem
The poor: who and how many?The poverty line: annual cost of a thrifty food budget for an
urban family of four, multiplied by three$24,000 in 2014
Children; single-parent families headed by femalesMinority-group membersRural and inner-city dwellersMajor differences by state
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-3
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-4
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-5
Poverty in America:The Nature of the Problem
Living in poverty: by choice or by chance?Charles Murray and Losing GroundMany Americans believe poverty is a choiceMost poor are in poverty as result of circumstance
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-6
Politics and Policies of Social Welfare
Social insurance programsWidely supported by public
Heavily fundedBenefits to individuals of all income levelsSeen as an earned entitlement
Social securityUnemployment insuranceMedicare
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-7
Politics and Policies of Social Welfare
Public assistance programsLess public support
Receive less fundingRestricted to people of low incomeSeen as a hand-out
Supplemental Security Income (SSI)Temporary Assistance for Needy Families (TANF)Head StartEarned Income Tax Credit (EITC)
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-8
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-9
Politics and Policies of Social Welfare
Public assistance programsIn-kind benefits: food stamps and housing vouchersMedicaidThe SCHIP programThe 2010 Health Care Reform Act
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-10
Politics and Policies of Social Welfare
Culture and social welfareU.S. has the most inefficient welfare system in the Western
worldScores of separate programs that may overlapLarge bureaucracy needed to monitor eligibility
InequitySocial security and Medicare: many high-income earners
receive benefits
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-11
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-12
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-13
Education as Equality of OpportunityAmerica’s heavy investment in public educationGoal is equality of opportunityFederal grants-in-aid
1965 Elementary and Secondary Education Act is the cornerstone of the federal government’s public-school efforts
The 1965 Higher Education Act Pell GrantsFederal loans
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-14
Education as Equality of OpportunityImproving America’s schools
American students not high performers relative to other advanced countries, though America spends very highly on education
Inequality of wealth in communities
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-15
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-16
Education as Equality of OpportunityMandatory high-stakes testing
No Child Left BehindControversial increase in weight on testing
Race to the TopCompetition that rewards performance and innovation
Partisan conflict over education policyFederal spendingSchool choice
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-17
The American Way of Promoting the General Welfare
Democracy and economic securityThe American way of welfareDifferences between the European and American
approach
© 2015 The McGraw-Hill Companies, Inc. All rights reserved. 16-18