Chapter 15Domestic Policy

• Areas of Domestic Policies

• Social Welfare Policy

• Development of Social Welfare Policy

• Social Insurance Programs

• Public Policy Protecting the Poor

• Environmental Policy

Domestic Public Policy

• Domestic policy - government policy decisions on matters affecting individuals within the political system.– Economic (Usually overlaps with all others)

– Education

– Welfare

– Criminal Justice

– Social Mores

– Environment

Social Welfare

• Social Welfare Policy - government programs directed specifically toward promoting the well being of individuals and families.

• Changing social/economic environment– Agricultural/rural to Industrial/urban– Increasing population (especially the elderly)– Social heterogeneity– Self interest versus national interest

Areas of Social Welfare

• Social Insurance– Social security

– Medicare

– Unemployment Compensation

• Education

• Public Aid– AFDC

– Medicaid

– Food Stamps

TANF (Temporary Aid to Needy Families)

Development of Social Welfare Policy

• Era of State Responsibilities– small federal bureaucracy dedicated to foreign issues and

gradual national domestic issues

– Social Darwinism - limited government control in free market system (laissez faire)

• Progressive Era– Urban/industrial movement at turn of 20th century restricting

corporations and improving public services.

– New civil service system, anti-trust legislation, consumer safety protection concerns

– Most social reform efforts continues to be a state responsibility

Development of Social Welfare Policy

• The New Deal– Hoover and Laissez Faire Policy– Collapse of Stock Market and economic

depression– Roosevelt elected and calls special session of

legislature for 100 days– 15 new social programs created

+ FDIC+ Social Security (AFDC)+ Unemployment Compensation

Development of Social Welfare Policy

• The Great Society– Kennedy/Johnson Programs– 1964

+ Civil Rights Act+ Food Stamp Act+ Equal Opportunity Act+ Elementary and Secondary Education Act

– 1965 + Voting Rights Act+ Medicare+ Medicaid

– 1972+ Supplemental Security Income

Social Insurance ProgramsSocial Security

• Created in 1935• Income/business tax based• Retirement Annuity• Disability Insurance• Dependent Protections• Surplus Funding • Deficit Funding (2018)• Cost $615,000,000,000 in FY 2007

Social Insurance ProgramsMedicare

• Created in 1965• Income tax + premium based• Medical Insurance for those 65 and over• Part A - hospital insurance (in patient)• Part B - supplemental medical insurance• Prescription Drug benefits • Rapidly rising health care costs• Cost - $390,000,000,000 in FY 2007

Social Insurance ProgramsUnemployment Compensation

• Temporary financial assistance to the unemployed

• State and federal tax on employers

• Cash benefits– 26 weeks– 13 additional weeks in certain areas

• Cost - $47,000,000,000 in FY 2007

Public Policy Protecting the Poor

• Means Tested Programs - cash or in-kind benefits to individuals who qualify based on income level.

• Poverty threshold - income level set by Department of HHS/Agriculture based on amount of money spent on food.

• 2007 HHS Poverty Guidelines

Counting the Poor• As a percentage of U.S. Population

– 1959 23.5% (39 mil out of 170 mil pop)– 2003 12.5% (35.9 mil out of 280 mil pop)

• Based on ethnic group in 2004– Anglos - 8.2%– Asians - 11.3%– Hispanics - 22.5%– Black - 24.4%

• Based on Education Level– No HS Diploma - 21.5%– No College - 11.3%– Some College - 8.5%– College Graduate - 4.7%

Best and Worst Cases in 2004

• Female– Age 25 - 34– No HS Diploma– 41% below poverty level

• Female– Age 35 - 44– College Graduate– 2.8%

Means Tested Programs• Aid to Families with Dependent Children

– part of SSAct of 1935– cash benefits based on specific qualifications– 1935 500,000 1994 14,400,000

• Welfare Reform Act of 1996– Temporary Aid to Needy Families– 24 consecutive months 60 months lifetime– More training less cash assistance– Joint program differs by state – Family of 3

• Alabama $164/mo. Alaska $923/mo.– 2007 4,500,000 cases worked– $16.5 Billion in 2007

Means Tested Programs

• Supplemental Security Income– Minimum income for aged, blind and disabled

• Federal program• Guaranteed income for disabled, blind, aged

– $623/mo child/individual– $934/mo couple

• 6,700,000 participants• Cost $37,000,000,000 in FY 2007

Means Tested Programs

• Medicaid

• Joint medical insurance

• Medical care not cash benefit

• 49,000,000 participants in 2006

• Cost $205,000,000,000 in FY 2007

Means Tested Programs

• Food Stamps

• Joint program for food purchases

• Coupons issued not cash

• 17,000,000 participants in 2001– peaked at 22,000,000 in 1981

• Cost $47,000,000,000 in FY 2007

Environmental Policy

• Began during Great Society Era

• Includes bureaucratic agencies actions, executive orders, legislative acts, special interest efforts and dedicated political parties.– EPA– Endangered Species Act– Clean Air Act– Sierra Club and Greenpeace– Green Party

Environmental Policy Process

• Risk Assessment - scientific estimate of potential damage to people and environment due to smoking, pollution, toxic waste and global warming.

• Risk Management - decision making process designed to reduce or contain risks identified in assessment process.