01:220:102 Lecture Notes - Lecture 7: Community Rating, Patient Protection And Affordable Care Act, Health Insurance Mandate

• School: Rutgers University
• Department: Economic
• Course: 01:220:102
• Professor: Douglas Blair

Document Summary

The economics of the welfare state: alleviating income inequality, alleviating economic insecurity, reducing poverty and providing access to health care. Welfare state- the collection of government programs designed to alleviate economic hardship. Three rationales for the creation of the welfare state: Because a marginal dollar is worth more to a poor person than a rich person, modest transfers from the rich to the poor will do the rich little harm but benefit the poor a lot. Poverty programs- a government program designed to aid the poor. Social insurance programs- programs designed to provide protection against unpredictable financial distress. Programs that help to alleviate poverty and provide access to health care generate external benefits to society. Poverty threshold- a minimum annual income that is considered adequate to purchase the necessities of life. The official poverty threshold depends of the size and composition of a family. Poverty rate- the percentage of population living below the poverty threshold.