PPPM 415 Study Guide - Final Guide: Supplemental Security Income, Earned Income Tax Credit, Public Choice

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Published on 19 Oct 2017
School
University of Oregon
Department
Planning, Public Policy and Management
Course
PPPM 415
Professor
PPPM 415 Final Notes
Poverty Distributive Policy in the U.S.: History of Social Insurance and the U.S. Safety Net
Social Security Act (The New Deal), 1935
Unemployment Insurance (UI)
Social Security, Supplemental Security Income (SSI) and SSI-D (disability)
o Retirement insurance for all workers
o Funds for aged, blind and permanently disabled with low-income
Aid to Dependent Children (ADC)
o later Aids to Families with Dependent Children (AFDC), and now Temporary Assistance
for Needy Families (TANF)
o Paets to suppot idoed ad aadoed oe ad hilde
o Evolved into anti-poverty for single-parents (rate of single-parenting rose dramatically
beginning in 1970s)
The Johnson Administration, mid-1960s
Medicaid, 1966
o Run by states
o Federal government pays 50-83% of cost
o Medical assistance to poor, disabled and nursing home residents
Food Stamps, 1975
o Households eligible up to 185% Federal Poverty Level (FPL), average benefit $175
Free-and-Reduced-Price School Breakfast and Lunch
Women, Infants, and Children Program (WIC)
o Coupons for certain free and subsidized nutritious foods for pregnant and nursing
women, infants and young children
Other means-tested programs:
o Cash:
Earned Income Tax Credit (EITC)
Tax credit for low- to moderate-income working individuals and families
Originally created in 1975, expanded in 1990s
Intended to provide incentive to work and to offset Social Security tax
burden
Very low cost to administer
3rd-largest social welfare program in U.S. (after Medicaid and Food
Stamps)
Some states have state EITCs adds on to federal EITC to help offset
regressive nature of many state taxes
o In-kind
Housing assistance (i.e. public housing, rent subsidies)
Energy assistance (i.e. assistance with heating and cooling bills, home energy
efficiency modifications)
Education and training programs (i.e. federal college financial aid)
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1970s ~ 1990s: Increasing public displeasure with cash welfare (AFDC)
Failure to reduce poverty over time
Mid-class mothers increasingly going to work
Increasing numbers of never-marries mothers
Rising number of welfare cases, particularly in the early 1990s
Concern about intergenerational culture of poverty, lack of skill-building
Early 1990s: States began experimenting with welfare-to-work waivers -> led to Federal Welfare
Reform, 1996
Effective on July 1, 1997
Fundamentally altered approach to welfare, eliminated no-strings attached entitlement
Goals:
o Move people from welfare to work
o Make it feasible (i.e. day care subsidies)
o Make it pay (i.e. EITC)
Converted AFDC to TANF
o Block grants to states
o Funding levels fixed at 1994 levels
States must comply with min. federal requirements
o 5-year limit on lifetime welfare receipt
o 2-year limit on receipt without associated self-sufficiency activities
o 20% exemptions to work requirements for education and training or children under 3-6
months
o Denies assistance to non-citizens who arrived in the U.S. after 1996
States fae pealties if the dot eet aseload ok atiit euieets
Political Economy, Public Choice Theory, and Government Failure
Government Failure
Examine:
o How government may fail to maximize social well-being
o Whether and to what extent current policy interventions fail to achieve their goals
Draws on:
o Political Economy
Interdisciplinary 跨學科 studies drawing on economics, law, and political
science
Explains how political and economic institutions interact to influence the
distribution of outcomes
o Public Choice Theory (political science, economy)
Studies behavior of politicians and government officials as mostly self-interested
agents
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Document Summary

Poverty distributive policy in the u. s. : history of social insurance and the u. s. safety net. Intended to provide incentive to work and to offset social security tax burden: very low cost to administer, 3rd-largest social welfare program in u. s. (after medicaid and food. Stamps: some states have state eitcs adds on to federal eitc to help offset regressive nature of many state taxes. In-kind: housing assistance (i. e. public housing, rent subsidies, energy assistance (i. e. assistance with heating and cooling bills, home energy efficiency modifications, education and training programs (i. e. federal college financial aid) 1970s ~ 1990s: increasing public displeasure with cash welfare (afdc: failure to reduce poverty over time, mid-class mothers increasingly going to work. Increasing numbers of never-marries mothers: rising number of welfare cases, particularly in the early 1990s, concern about intergenerational culture of poverty, lack of skill-building. Early 1990s: states began experimenting with welfare-to-work waivers -> led to federal welfare. Political economy, public choice theory, and government failure.