Transcript Providing a Safety Net

PROVIDING A SAFETY NET
OBJECTIVES
Students will summarize the U.S. political
debate on ways to fight poverty
 Students will describe the main programs
through which the government redistributes
income

THE POVERTY PROBLEM

We live in a free market or free enterprise
system
 Generates
more wealth than any other economic
system
 Wealth that is generated is not distributed equally
 Creates a situation where you have
 Wealthy
class
 Middle class
 Poor
THE POVERTY PROBLEM

Poverty threshold
 Income
level below what is needed to support
families or households
 Is a monetary amount created by the government
THE POVERTY PROBLEM

The government’s role
in the poverty problem

They believe they have
responsibility to
Young
 Old
 Sick
 Poor
 Disabled

THE POVERTY PROBLEM

Welfare system
 System
designed to provide for young, old, sick,
poor, and disabled
 Welfare
 Government
aid to the poor
 Created in 1930’s following the Great Depression
 Created by Franklin D. Roosevelt
THE POVERTY PROBLEM

Welfare system
 Welfare
 Increased
in the 1960’s with Lyndon Johnson’s “war on
poverty” plan
 Continued to increase in 1970’s and 1980’s
 In 1990’s critics started speaking out against welfare
Critics believed that some people become dependent on the
welfare system and some people are unwilling to get off of it
 In the 1990’s Congress passed legislation that is going to
change welfare and the way the system works

REDISTRIBUTION PROGRAMS

Cash transfers
 Direct
payments of money to the poor
 Temporary
assistance for needy families
Established in 1996
 Goal is to get people off of welfare and into the work force
 Program gives money to the state governments who then
distributes it to needy families
 People on this assistance are encouraged to get back to work

REDISTRIBUTION PROGRAMS

Cash transfers
 Social
Security
 Workers
pay into it during their work years
 Will collect money when they retire
 Unemployment
 Given
to people who lose their jobs through no fault of
their own
 To collect must prove that you are actively seeking work
REDISTRIBUTION PROGRAMS

Cash transfers

Workers Compensation

Pays workers who get hurt
on the job and are no
longer able to work
REDISTRIBUTION PROGRAMS

In-kind benefits

Items given free to
individuals or at a greatly
reduced price
Food
 Food stamps
 Legal aid

REDISTRIBUTION PROGRAMS

Medical benefits

Medicare


Health insurance for
retirees
Medicaid

Health insurance for the
poor
REDISTRIBUTION PROGRAMS

Education

Provides assistance for
educational purposes for
people at certain income
levels
REDISTRIBUTION PROGRAMS

Faith-based initiatives
 Allowing
for churches and other organizations to
provide for those who are in poverty
QUESTIONS?
What does the Temporary Assistance for Needy Families
program provide?
A.
B.
C.
D.
retirement income for the elderly
cash to the states to help run their welfare programs
compensation to all who lose jobs
cash to workers injured on the job
QUESTIONS?
What does the Temporary Assistance for Needy Families
program provide?
A.
B.
C.
D.
retirement income for the elderly
cash to the states to help run their welfare programs
compensation to all who lose jobs
cash to workers injured on the job
QUESTIONS?
What is one benefit provided by Social Security?
A.
B.
C.
D.
medical care for the indigent
cash transfers to workers injured on the job
compensation for all who lose jobs
retirement income for the elderly
QUESTIONS?
What is one benefit provided by Social Security?
A.
B.
C.
D.
medical care for the indigent
cash transfers to workers injured on the job
compensation for all who lose jobs
retirement income for the elderly
QUESTIONS?
The main goal of Temporary Assistance for Needy Families
(TANF) was to ________.
A. provide greater welfare benefits for those who need it
B. provide economic assistance to citizens during the Great
Depression
C. guarantee cash transfers to the elderly
D. assist people in ending their dependency on the welfare
program and get back into the work
QUESTIONS?
The main goal of Temporary Assistance for Needy Families
(TANF) was to ________.
A. provide greater welfare benefits for those who need it
B. provide economic assistance to citizens during the Great
Depression
C. guarantee cash transfers to the elderly
D. assist people in ending their dependency on the welfare
program and get back into the work
QUESTIONS?
The main goal of Temporary Assistance for Needy Families
(TANF) was to ________.
A. provide greater welfare benefits for those who need it
B. provide economic assistance to citizens during the Great
Depression
C. guarantee cash transfers to the elderly
D. assist people in ending their dependency on the welfare
program and get back into the work