POLS 101 Lecture 18: 12-01 Lecture Notes
Document Summary
Domestic policy: social policy, expands during wars, economic hardships, wars. American revolution state assistance for displaced. Civil war national pensions and state welfare payments. Wwii gi bill (1944) national subsidies for college, home mortgages: economic hardship. Great depression / new deal: 3 largest social programs: Social security (1935) federal, funded by payroll tax, part of. Fdr"s new deal: unemployment benefits federal and state. Medicare (1965) federal, funded by payroll tax, part of lbj"s. Medicaid (1965) federal and state; not funded by payroll, but by: means-tested program have to be below certain (133% of) poverty line, fiscal policy, reliance on big government. Once programs begin, they are difficult to stop or change: Third rail social security & medicine (don"t mess with these: deficit spending > revenue. Currently ~ billion or 5. 5% of gdp. 3 entitlement programs: t. s. conflicts in iraq, afghanistan. 2001 tax cuts federal revenue decline: debt accumulated annual deficits.