OVERVIEW OF ENTITLEMENT PROGRAMS

• ENTITLEMENT: PROGRAM THAT

GUARANTEES A SPECIFIC LEVEL OF

BENEFITS TO PERSONS WHO MEET

REQUIREMENTS SET BY LAW

• BY FAR THE LARGEST PORTION OF

MANDATORY SPENDING

OVERVIEW OF ENTITLEMENT PROGRAMS• BARRIER TO BALANCED BUDGETS

• AVAILABLE TO ALL

• SOCIAL SECURITY

• MEDICARE

• AVAILABLE TO THOSE WITH INCOMES

BELOW A CERTAIN LEVEL

• MEDICAID

• HOUSING ASSISTANCE

• FOOD STAMPS

DIFFERENCES OF OPINION• LIBERALS

• GOVERNMENT HAS AN OBLIGATION TO

PROVIDE FOR SOCIAL WELFARE

• CONSERVATIVES

• ENTITLEMENTS USURP RESPONSIBILITY

AND ARE USED TO CREATE A PERMANENT

UNDERPRIVILEGED CLASS DEPENDENT ON

GOVERNMENT HANDOUTS

SOCIAL SECURITY

• FUNCTION

• PAY 6-8% OF FIRST $106,800

• RETIREES RECEIVE MONTHLY

PAYMENTS

• DISABILITY INSURANCE

• TEMPORARY UNEMPLOYMENT

INSURANCE

SOCIAL SECURITY• FUTURE THREATS

• INSUFFICIENT NUMBER OF PEOPLE PAYING INTO THE SYSTEM

• “GRAYING OF AMERICA”

• BABY BOOM RETIREES

• INCREASING LIFE EXPECTANCY

• WORKER TO BENEFICIARY RATIO

• 1938—25:1

• 2015—3:1

• 2040—2:1

SOCIAL SECURITY

• POSSIBLE SOLUTIONS

• RAISE RETIREMENT AGE

• FREEZE BENEFITS

• RAISE FICA TAXES

• INVESTMENT

• PRIVATIZATION

HEALTH CARE•MEDICARE

• HEALTH CARE ASSISTANCE

TO PEOPLE OVER 65

• NEARLY BANKRUPT DUE TO

HIGH MEDICAL COSTS

•MEDICAID

• HEALTH CARE ASSISTANCE

TO THE POOR, DISABLED,

AND CHILDREN

SOCIAL WELFARE• DESIGNED TO HELP TARGETED GROUPS

• WELFARE: INCOME/HOUSING ASSISTANCE

• FOOD STAMPS: NUTRITION/INCREASE

BUYING POWER

• DESPITE WELL-INTENTIONED EFFORTS,

POVERTY LEVELS HAVE BEEN CONSTANT

AND REMAINED A PERPETUAL PROBLEM

SINCE THE FIRST WELFARE PROGRAMS

WERE ESTABLISHED IN THE NEW DEAL