social policy “the preamble to the constitution states that ‘we the people of the united states,...

Social Policy“The preamble to the

Constitution states that ‘We the People of the United

States, in Order to create a more perfect union, establish Justice…promote the general

Welfare…do ordain and establish this Constitution.’ Social policy is set with this

important charge in mind.” - Wood

Social Policy: An overview• Government’s responsibility for the welfare of its citizens

remains controversial and disputed today• Generally 2 types of programs:– Majoritarian- benefits almost everyone

• Ex. Social Security, Medicare

– Client- benefits only a small number• Ex. Medicaid, Food Stamps• Means tested- must fall below a certain income level to qualify

• Entitlement programs: government-sponsored programs providing mandated benefits to those who meet eligibility requirements

Social Welfare in the United States 4 Factors shape policy:1. Who should benefit? Insistence that it be only

those who cannot help themselves• Slow, steady change in deserving/undeserving

line • Alterative view: fair share of national income;

government redistribute money • Preference to give services, not money, to help

deserving poor

2. Late arrival of welfare policy • By 1935 Social Security Act, we were behind

twenty-two European nations • Contrast with Great Britain in 1908– “What ordinary politics brought to England in 1908,

only the crisis politics of 1935 would bring to the United States.”

– But once the programs started, they grew fast!• By 1983, one third of all Americans received benefits from

one or more social welfare programs.

3. Influence of federalism • Federal involvement “illegal” until 1930s – Why? Powers not delegated are left to states– What changed? Courts constitutional interpretation

• Experiments by state governments – Argues against federal involvement because state

already providing welfare – States lobbied for federal involvement to help them

4. Non-govt institutions play a big role

• Non-govt institutions get contracts and grants to administer social welfare programs– Ex. Big Brothers/Big Sisters, Catholic Charities

• 1996 Welfare reform law allowed religious organizations to compete for govt contracts=Charitable Choice (but couldn’t use $$ to preach)– Bipartisan support, programs have increased

Majoritarian welfare programs Social Security Act of 1935• Great Depression of 1929: local relief was overwhelmed • Elections of 1932: Democrats & FDR swept in– Legal and political roadblocks; was direct welfare

unconstitutional?– Fear of more radical movements

– Long’s “Share Our Wealth”– Sinclair’s “End Poverty in California”– Townsend’s old-age program

• Cabinet Committee’s two-part plan– “Insurance” for unemployed and elderly – everybody pays/benefits– “Assistance” for dependent children, blind, aged – everybody pays, some

benefit– Federally funded, state-administered program under means test

Majoritarian welfare programs Medicare Act of 1965• Medical benefits omitted in 1935: controversial but done to ensure

passage • Opponents:

• AMA • House Ways and Means Committee under Wilbur Mills (R-Arkansas)

• 1964 elections: Democrats’ big majority altered Ways and Means Com.

• Objections anticipated in plan • Applies only to the old, not everybody • Only hospital, not doctors’, bills covered

• Broadened by Ways and Means to include Medicaid for poor; pay doctors’ bills for elderly

• Passed the Democratic-controlled Congress with ease

Reforming majoritarian welfare programs

Social Security • Not enough people paying into Social Security • Three solutions: – Raise the retirement age to seventy, freeze the size of

retirement benefits, raise Social Security taxes – Privatize Social Security- people would contribute into

account invested in Stock Market (better return, but risky)– Combine first two methods and allow individual investment

in mutual funds

Reforming majoritarian welfare programs

Medicare • Problems: huge costs and inefficient • Possible solutions – Get rid of Medicare and have doctors and hospitals work for

government (Con: slower care, fewer benefits, less innovation)– Elderly take Medicare money and buy health insurance (con:

affordability)• Delaying the inevitable – Clinton used the surplus to create new benefits (prescription

drug plan)– Bush and attempts at new health care measures – Medicare

Modernization Act of 2003 (pushed by interests -AARP)

Pros and Cons: Majoritarian politics

• Programs with widely distributed benefits & costs – Beneficiaries must believe they will come out ahead – Political elites must believe in legitimacy of program

• Social Security & Medicare seemed great!• Debate over legitimacy: Social Security (1935)– Constitution did not authorize federal welfare

(conservatives)– But benefits were not really a federal expenditure (liberals)

• Good politics unless cost to voters exceeds benefits

Client welfare programs: AFDC(Aid to Families with Dependent Children)

• Scarcely noticed part of Social Security Act • Federal government permitted state to

– Define need – Set benefit levels – Administer program

• Federal government increased rules of operation, added more and more regulations

• New programs (e.g., Food Stamps, Earned Income Tax Credit, free school meals)

Client welfare programs: AFDC• Problems:– States complained about federal regulations – Public opinion turned against program

• Corruption• Weakened the family (got more money for more kids)

– Composition of program participants changed • 1970: half of women were widowed/divorced• 1994: only 1 quarter, the rest never married• Also, 2/3 of women were on for 8 years or more!

• Temporary Assistance to Needy Families (TANF) 1996– Stricter requirements and limits on how long families could

collect– Lowered welfare caseload by 60%

Pros and Cons: Client politics

• Programs pass if cost to public not perceived as great and client considered deserving

• Americans believe today that able-bodied people should work for welfare benefits

• Americans prefer service strategy to income strategy (give service/training rather than money)– Charles Murray: high welfare benefits made some

young people go on welfare rather than seek jobs – No direct evidence supports Murray

Social Policy • U.S. government currently assumes

responsibility for – Health care– Welfare– Education