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Transcript of 16 Economic and Social Welfare Policymaking Video: The Big Picture 16 ...
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Economic and Social Welfare Policymaking
Video: The Big Picture 16
http://media.pearsoncmg.com/ph/hss/SSA_SHARED_MEDIA_1/polisci/presidency/Edwards_Ch16_Economic_and_Social_Welfare_Seg1_v2.html
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Learning Objectives
Identify the main policy tools that American government can employ to address economic problems, and contrast Keynesian and supply-side economics
Compare and contrast entitlement and means-tested social welfare programs
16.1
16.2
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Learning Objectives
Assess the extent of economic inequality in America and the role of government in lessening it
Trace the change over time in major federal welfare programs
16.3
16.4
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Learning Objectives
Outline how America’s Social Security program works and the challenge of keeping it financially solvent in the coming years
Distinguish American social welfare policy from that of other established democracies
16.5
16.6
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Learning Objectives
Assess the impact of social welfare policies on democracy and the scope of government in America
16.7
Video: The Basics 16
http://media.pearsoncmg.com/ph/hss/SSA_SHARED_MEDIA_1/polisci/presidency/Seg2_EconomicPolicy_v2.html
Two Major Worries: Unemployment and Inflation
Policies for Controlling the Economy
Why It Is Hard to Control the Economy
16.1Economic Policymaking
Unemployment rate 10% in Great Recession Underemployment rate Tracked by Bureau of Labor Statistics (BLS)
Inflation Rise in price of goods and services Consumer price index (CPI) Averages 4%
16.1Two Major Worries: Unemployment and Inflation
Laissez-faire
Monetary policy and the “fed” Federal Reserve Board Meets in secret; not accountable to Congress Manipulating the amount of money
16.1Policies for Controlling the Economy
Fiscal policy: Keynesian v. supply-side economics Taxing, spending, borrowing Keynesian economic theory Supply-side economics
16.1Policies for Controlling the Economy
16.1Chairman of the Fed, Ben Bernanke
16.1FIGURE 16.1: How the Obama administration’s predictions of the impact of the 2009 stimulus plan went awry
Video: Thinking Like a Political Scientist
16.1
http://media.pearsoncmg.com/ph/hss/SSA_SHARED_MEDIA_1/polisci/presidency/Seg4_EconomicPolicy_v2.html
“Political business cycle” Presidents control economy to win elections
Private sector dominates economy Federal government is ¼ of GDP Impact of government policies gradual
16.1Why It Is Hard to Control the Economy
16.116.1 Laissez-faire economic theory holds that government intervention in the economy:
a. Is needed during recessions and depressions
b. Is key to preventing inflation
c. Is detrimental to economic growth and prosperity
d. Is necessary only when interest rates are too high
16.116.1 Laissez-faire economic theory holds that government intervention in the economy:
a. Is needed during recessions and depressions
b. Is key to preventing inflation
c. Is detrimental to economic growth and prosperity
d. Is necessary only when interest rates are too high
Video: In Context 16.1
http://media.pearsoncmg.com/ph/hss/SSA_SHARED_MEDIA_1/polisci/presidency/Seg3_EconomicPolicy_v2.html
Biggest government expense
Only 17% goes to poor
16.2Types of Social Welfare Policies
Entitlement programs Social Security, Medicare Largest and most expensive
16.2Types of Social Welfare Policies
Means-tested programs Food stamps, Medicaid Fear of dependency
16.2Types of Social Welfare Policies
16.216.2 Which of the following is an example of an entitlement program?
a. Food stamps
b. Medicaid
c. Postal service
d. Medicare
16.216.2 Which of the following is an example of an entitlement program?
a. Food stamps
b. Medicaid
c. Postal service
d. Medicare
Explore the Simulation: You Are the Federal Reserve Chair
16.2
http://media.pearsoncmg.com/long/long_longman_media_1/2013_mpsl_sim/simulation.html?simulaURL=18
Explore Economic Policy: Who Broke the Economy?
16.2
http://media.pearsoncmg.com/long/long_edwards_mpslgia_16/pex/pex16.html
Who’s Getting What?
Who’s Poor in America?
How Public Policy Affects Income
16.3Income, Poverty, and Public Policy
16.399%
Income distribution Sense of justice and equality in a democracy Relative deprivation increasing
Wealth versus income Income is amount collected in given time Wealth is value of assets 1/3 of wealth held by 1% 1/3 held by 90%
16.3Who’s Getting What?
16.3FIGURE 16.2: Increase in income inequality and the rise of the top 1%
Poverty line $11,139 in 2010
46.6 million Americans poor in 2010 15.2% of population
Demographics of poverty Feminization of poverty
16.3Who’s Poor in America?
16.3If landmass were divided like wealth
16.3FIGURE 16.3: Poverty rates for persons with selected characteristics, 2010: A comparison of the official and supplemental measures
Taxation Progressive Proportional Regressive
16.3How Public Policy Affects Income
Government Expenditures Transfer payments Social security, unemployment benefits, food stamps, etc.
16.3How Public Policy Affects Income
16.3EBT at the farmers’ market
16.3TABLE 16.1: The major social welfare programs
16.316.3 What percentage of Americans live below the poverty line?
a. 5.3%
b. 10%
c. 15.2%
d. 25.6%
16.316.3 What percentage of Americans live below the poverty line?
a. 5.3%
b. 10%
c. 15.2%
d. 25.6%
Video: In the Real World 16.3
http://media.pearsoncmg.com/ph/hss/SSA_SHARED_MEDIA_1/polisci/presidency/Seg5_EconomicPolicy_v2.html
“Welfare” as We Knew It
Ending Welfare as We Knew It: The Welfare Reform of 1996
16.4Helping the Poor? Social Policy and the Needy
FDR’s New Deal programs Social Security Act of 1935 AFDC
Johnson’s War on Poverty Food stamps
16.4“Welfare” as We Knew It
Republican’s war on dependency “Welfare queens” Deadbeat dads The undeserving poor/African Americans
16.4“Welfare” as We Knew It
Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) States would run their own programs Two year limit for benefits Lifetime maximum of 5 years From AFDC to TANF
Reforms were effective Benefit dollar amounts declined Number of recipients declined
16.4Ending Welfare as We Knew It: The Welfare Reform of 1996
16.4Climb Wyoming
16.4FIGURE 16.4: How welfare reform drastically reduced the welfare rolls
16.416.4 Which of the following was a goal of welfare reform?
a. Reduce the number of people living in poverty
b. Reduce the number of children who lack medical insurance
c. Reduce the number of people receiving welfare benefits
d. Reduce the need for job training to get people off welfare
16.416.4 Which of the following was a goal of welfare reform?
a. Reduce the number of people living in poverty
b. Reduce the number of children who lack medical insurance
c. Reduce the number of people receiving welfare benefits
d. Reduce the need for job training to get people off welfare
Growth of Social Security
Reforming Social Security
16.5Social Security: Living on Borrowed Time
Popular program
Modest benefits Average $1,229/month
Most expensive public policy But fiscally sound Surplus depleting since 2010
What is the solution?
16.5Growth of Social Security
Politically difficult Older Americans have high voting rate
Reform proposals Bush: Put 1/3 into private investments Obama: Increase age to receive benefits Lower inflation raises Reduce benefits for wealthy recipients Raise contribution amounts
16.5Reforming Social Security
16.516.5 Which of the following was a Social Security reform proposed by President Bush?
a. Lower age to receive benefits
b. Increase contributions
c. Raise age to receive benefits
d. Divert funds to stock market
16.516.5 Which of the following was a Social Security reform proposed by President Bush?
a. Lower age to receive benefits
b. Increase contributions
c. Raise age to receive benefits
d. Divert funds to stock market
The European welfare state
Taxes and benefits
Individual v. government responsibility
16.6Social Welfare Policy Elsewhere
16.616.6 What is the main difference in the American and European attitudes toward poverty?a. Americans believe poverty is your own
fault
b. Europeans believe poverty is a result of circumstances beyond your control
c. Both A & B
d. Neither A nor B
16.616.6 What is the main difference in the American and European attitudes toward poverty?a. Americans believe poverty is your own
fault
b. Europeans believe poverty is a result of circumstances beyond your control
c. Both A & B
d. Neither A nor B
Democracy and Economic and Social Welfare Policies
Economic and Social Welfare Policies and the Scope of Government
16.7Understanding Economic and Social Welfare Policymaking
Problems of free enterprise addressed via democracy Government regulation demanded Limits to economic freedom
Groups unequal in political resources Policy inertia
16.7Democracy and Economic and Social Welfare Policies
16.7Child labor
Liberals and conservatives disagree Liberals advocate more govt. intervention Conservatives want less
Welfare state too big or too small? Depends which side you are on
16.7Economic and Social Welfare Policies and the Scope of Government
16.716.7 The viewpoint that the welfare state is too large and serves an undeserving clientele is likely to be espoused by:
a. A liberal
b. A conservative
c. Both
d. Neither
16.7 The viewpoint that the welfare state is too large and serves an undeserving clientele is likely to be espoused by:
a. A liberal
b. A conservative
c. Both
d. Neither
16.7
Discussion Question
What tools does the government possess to intervene in the economy? Who wields these tools and how effective are they in improving economic growth? Why do conservatives and liberals disagree about social welfare policy?
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Video: So What? 16
http://media.pearsoncmg.com/ph/hss/SSA_SHARED_MEDIA_1/polisci/presidency/Edwards_Ch16_Economic_and_Social_Welfare_Seg6_v2.html
Further Review: On MyPoliSciLab
Listen to the Chapter
Study and Review the Flashcards
Study and Review the Practice Tests
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