Week 5 Social Welfare Policy 04 28 2014 I 3 types of income maintenance or income support policies Social insurance programs Least controversial Work employment programs Public assistance programs most controversial II DEFINING POVERTY Absolute or Relative terms o Absolute definition Most widely used social security administration definition Poverty standard family of 4 one adult and three children 2012 23 364 Census Bureau 2013 same as 2012 Criticisms of SSA definition Too low but only cash Ignores regional variation in cost of living DEPARTMENT OF AGRICULTRE standard would set poverty threshold about four thousand dollars higher than the social security admission SSA Because farmers are their constituents They want to subsidize farmers o Relative Definition Poor earning less than of U S median income Increasing income inequality from 1967 to present III WHO ARE THE POOR Aged Women Less educated Rural Working poor min wage 2009 current federal minimum wage 7 25 x 40 hours x 52 weeks 15 080 2010 current Mass mw 8 00 x 40hours x 52 weeks 16 640 o So why not just raise the mw If you raise the wage employment tends to go down IV HOW POOR ARE THE POOR IN US 43 own their own homes 80 have air conditioning only 6 are over crowded o Average poor American has more living space than an average PERSON in many European cities of the American poor own their own car virtually all have roof over their head flush toilet electric refrigerator stove central heating color TV telephone V TRENDS BY DEFINITION OF POVERTY CHART on course website o of poverty from 1965 2013 under categories Market Pre Welfare Post Transfer Adjustment for In Kind Benefits In Kind benefits goods you give to the poor because you don t trust them with cash ON THE EXAM SHE WILL ASK NOT FOR EXACT PERCENTAGES BUT FOR COMPARISONS BETWEEN DIFFERENT POLICIES AND THEIR EFFECTS ON POVERTY Social security causes the biggest drop in poverty Neither market nor pre welfare are definitions of poverty Official definition Post Transfer o Doesn t make much difference after you add social security o Social security is the most effective program in reducing poverty VI PREVENTIVE STRATEGY SOCIAL INSURANCE Social Security Act 1935 Old Age Survivors Disability Health Insurance OASDHI o Eligible those who paid into it Over 90 working pop Covered included self employed Not covered state local federal with own defined benefit pension plan o Expanded 1939 survivors benefits 1956 disability insurance 1965 Medicare o Single largest item of federal spending as of FY 2013 Defense 18 Social Security 23 Medicare Medicaid 25 o Reform proposals to stop bankruptcy in 2042 if real Increase tax revenues by Raising tax rate from 6 2 total 12 4 with employer contribution to Increasing salary cap from current 113 700 in 2013 to no cap Raise full retirement age to 70 by 2007 full retirement is 67 for people born after 1959 Gradual reduction in benefits but increase for lower income workers and divorced 10 years or more marriage or surviving spouses Diversity social security investment Invest part of money in private stock and bond market higher yield than government bonds Privatize part of social security 1 2 managed by workers or some board attraction to production of a nest egg that can be passed on to one s survivors VII ALLEVIATIVE STRATEGY PUBLIC ASSISTANCE OR WELFARE Means tested o AFDC and SSI o General Assistance state programs for emergencies o TANF 19 Supplemental Security Income SSI aged blind disabled Crime and Criminal Justice 04 28 2014 No simple answer to this factor Goal of Crime Policy Provide internal peace so citizens can maintain life liberty and pursue happiness Background o Kinds of Crime Against property Some street crime auto theft People don t regard these as urgent as others White collar Not much focus when it comes to policy Investment fraud the most costly form of crime making since you don t feel physical threat Political Against persons Street crime including assault murder rape robbery Victimless These might result in other crimes but still regarded as Intoxication pornography etc victimless o Rising Crime and Fear of Crime In 4 decades after WWII major crime increases dramatically Violent crimes increases extremely House shooting up around 1961 Causes o 1937 Marijuana transfer act Nixon declared war on drugs o 1961 1981 Baby boomers coming of age Massive youth population o 1969 California 1st state to divorce law Single parent homes became cause of crime o 1973 Legalization of abortion Decreased crime in the 90s o Decreases of crime in the 90s Increases awareness of domestic violence o THE CHART ON CRIME RATES SUPER IMPORTANT Effect target hardening Proliferation of home business security systems Gated communities Private security businesses o Crime Rate Computation FBI Uniform Crime Report 7 categories crime rates per 100 000 murder manslaughter forcible rape robbery aggravated assault burglary auto theft larceny theft Dilulio 3 limits to FBI crime index Based only on crimes reported to police o Reported is to 1 3 of actual crime Local police departments compile stats FBI hierarchical counting only most serious crime reported White collar crime not in index Costs more than street crime Psychologically easier to handle Explanations for Long Rise in Crime Rates o Laws increasing o Increase in reporting Computers Sympathetic staff More police on street o Drug prohibition Crime 1 sales and possession Crime 2 unintended consequences of the sale street crime to pay for illegal expensive drugs o Demographic changes in post WWII Urbanization of America Wealth disparity becomes more apparent You can relatively anonymous with packed cities Higher birth rates in lower class In part the baby boomer explanation Growth in population under 25 Part of the baby boomers explanation o Rossell denominator problem Dilulio Philadelphia almost all murder victims were black Rossell even if all murders by blacks only less than 1 of blacks commit murders Perceptions of criminality cloud our perceptions about what the actual problem is Dilulio 6 of boys do 50 of crimes Rossell 98 of all violent attacks on street by males but less than 1 of males attack o Increase in status for criminals in ghettos Identity politics Consciousness of victimhood Crime in response to a sense of injustice Crime against oppressive system o Breakdown of family Theory Lack of a father Not quite been explained by data Research Not enough adults Recent Crime Reduction since 1995