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Similar a Pppa 6085 social insurance and welfare
Similar a Pppa 6085 social insurance and welfare (20)
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Pppa 6085 social insurance and welfare
- 1. Social Insurance and Welfare
- 2. Who benefits from social insurance programs? • Participation is compulsory and nearly universal • OASDI (Old Age, Survivors, and Disability Insurance) • OASDI provides cash to people who have a work history and their family • Participants are the elderly or their survivors and people with disabilities
- 3. Who benefits from welfare programs? • Eligibility is categorical • Being poor is not sufficient • Many eligible people choose not to participate • TANF (Temporary Assistance for Needy Families) • TANF provides cash to poor people with children and poor pregnant women
- 4. Program Finance: Social Insurance programs are funded by dedicated taxes, welfare programs are not OASDI is financed by the FICA Tax, a dedicated tax on earned income TANF is financed by General Revenues, a combination of many different taxes
- 5. Social Insurance programs provide higher benefits to higher income groups • OASDI benefits are higher for higher income groups • The benefit received is a function income and the amount of FICA tax paid • People who earn more pay more FICA tax and receive larger benefits
- 6. Welfare programs are means-tested and provide benefits to people based on need TANF benefits are inversely related to income, the less money you have the more TANF support you are eligible to receive
- 7. Program Administration • Social insurance programs are administered at the national level of government • Welfare programs are administered at the state and local level of government
- 8. Feeling “Entitled” Grandma and Grandpa “earned” their social insurance benefits by working and paying dedicated taxes There is no shame or stigma associated with receiving Social Security benefits
- 9. Feeling Shamed and Stigmatized Welfare recipients are stigmatized for receiving welfare benefits Welfare programs are politically unpopular
- 10. Social insurance • Who benefits? • Almost everybody, because participation is compulsory • Finance? • Dedicated taxes • Means-tested? • No. In fact, higher income people tend to receive higher benefits • Administration? • National government • Popularity? • Widespread popularity • Participants are not stigmatized Welfare • Who benefits? • A narrowly defined group of needy people • Finance? • General revenues • Means-tested? • Yes. You must be needy to receive benefits and benefit generosity is related to need • Administration? • State and Local governments • Popularity? • Controversial • Participants are stigmatized