Poverty Programs

NEW DEAL REFORMS

Created during the Depression

President Franklin D. Roosevelt

Election of 1932

New Deal: Social Security

Gives assistance to low-income, elderly Americans

Financed by equal contributions from employers and employees

All citizens over age 65 are eligible to receive benefits

New Deal: Unemployment Insurance

Allowed unemployed men and women to continue to buy products and services

Provided temporary financial help to workers who do not have jobs but are looking for work

Most states provided 26 weeks worth of benefits

New Deal: Aid to Families with Dependent Children

Offered direct cash payments to low-income families with children under 18 whose parent was deceased, absent, or unemployed

Most payments went to single mothers

Program was most often associated with the term “welfare”

Became TANF

New Deal: Public Housing

Aimed at eliminate the slums and instead building affordable housing

Congress created the Section 8 program to provide public housing for those in need

The government pays part of the rent for low-income tenants

Johnson’s War on Poverty

Believed no society could be great and have poverty

Began the Great Society Introduced social

programs designed to help people move up the economic ladder

Great Society: Food Stamps

Gives food credits to needy individuals

Based on incomeNo time limit27 million in 2005

Great Society: Medicaid

Free or subsidized medical care for low-income Americans

Determined by the state

Covered 47 million in 2004

Great Society: Medicare

Health insurance for people 65 and older, and some disabled people

Covers nearly 40 million

Able to get prescription benefits since 2006

Recent Changes: EITC

Earned Income Tax Credit Supplements wages of

low income families and individuals by reducing tax burden

Recent Changes: Minimum Wage

Lowest amount a person can pay somebody else for work.

Currently $6.55$5.15

$5.85

$6.55 $7.25

0

1

2

3

4

5

6

7

8

Hourly Rate

1997200720082009

Recent Changes: Head Start

Gives grants to local agencies to provide comprehensive child development services to low-income families

Birth to age five if below poverty line

Nearly 1 million participate

Free/Reduced Lunch

Provides nutritionally balanced lunches to students

Based on household income

Schools are reimbursed by Federal Government

WORK AND WELFARE: HOW MANY HOURS SHOULD A

PERSON ON WELFARE HAVE TO WORK?

Debate!

Work More! Work Less or the Same!

People become self-sufficient quicker

Lower rates of welfare in states with higher requirements

Hours can be devoted to education and job training

Single mothers who can’t afford childcare will have a harder time

Government should focus on skills training rather than hours

Sometimes the jobs just aren’t there.

Welfare Work Requirements

SHOULD THE GOVERNMENT FUND FAITH-BASED

SERVICE PROVIDERS TO HELP THE POOR?

Debate!

Give ‘em More! Take it Away!

Well positioned groups make immediate impact

Operate more efficiently than government programs

Forbid them from converting and there is no link between church and state

Taxpayers should not have to fund organizations with views they oppose

Blurs the line between church and state

Government should be the “fixer,” not private groups

Faith-Based Funding

IS THE FEDERAL GOVERNMENT IS DOING

ENOUGH TO COMBAT POVERTY?

Debate!

Help More! Get Out!

In addition to helping individuals, it helps the entire economy

Focus on the teaching aspect, not the “handouts”

Poverty increases despite economic growth

Tax cuts have benefited the wealthy

Government doesn’t address the “disease”, just the “symptom”

Government’s Role in Combating Poverty