Policy Design SOC 185 Exam 2

Eligibility

Broad coverage vs. targeting those in need

Benefits

cash flexibility vs. particular goods/services

Generosity

Adequacy vs Cost

Delivery

Public accountability vs. private/nonprofit providers

Funding

progressive taxes vs. feasibility (degree of being easily achieved, can it be done)

Tradeoffs effect…

equity, efficiency, complexity, support

How can welfare programs vary (form of benefit)

• money

• in-kind googs and services (food, housing, childcare)

• Regulation and protection (minimum wage, mandated, vacations)

• Employer-provider benefits (mandates and subsidies)

How can welfare programs vary (Generosity)

• Cash benefits-replacement rates, subsistence, poverty line, median income, prevailing wage, waiting period, progessivity

• services - quality, availability, wait times, choice of providers

How can welfare programs vary (Eligibility)

• universal or selected (income testing)

• immigrants (authorized or not)

• Strictness of eligibility testing (medical certification pay stubs, tax forms, frequency

Poltical Barriers and Stratagies (universalism)

universalism is a baseline support net for all citizens and it is a given right

• increases public support and generosity

• less racialization of programs

• allows hidden redistribution if benefits of taxes are progressive

Poltical Barriers and Stratagies (targeting)

Usually targets low income, discriminated, or groups affected by inequality

• less expensive, only for the needy (Not Bill Gates)

Targeting with Universalism

• Universalism provides foundation for selection

• targeting is less visible

• universalism promotes sense of community, socially approved agencies, rights discourse

Putting Politics First

When making a policy one should account

1. for political approval and disproval and who will be affected by the policy

2. second focus on efficiency

ACA strategy: Putting Politics First

• Employer mandate: Insured keep current plan, reduces need for new taxes

• medicaid expansion: reduces need for new taxes (states pay part, cheaper than subsidies)

• individual mandate - reduces insurer opposition

• no deficit spending

Policy Feedbacks

Political outcome of a policy

• public opinion (GI Bill)

• interest groups (Medicare AARP Old People, Wagner Act → labor unions)

• government capacity: regulatory and administrative tools that enable ftuure reform (pollution permits → cap-and-trade readiness)

• State Variation: States with administrative capacities (climate) adopt stronger policies

  • aca: complexity and benefits for relatively small part of population

  • obama tax cuts: invisible payroll benefits

  • welfare reform: fragmented low-income advocated by moving to states

Marginalized Groups and the Welfare State (Inequality)

Women

• Wage gap (wider for wpoc)

  • earnings-based pensions and employer-provided benefits reinforce it

• Higher poverty and homelessness, especially single mothers, weak aid aid to poor, unaffordable housing

• Unpaid family leave, no family allowances, little childcare support

• Limited access to abortion and contraception

• main beneficiaries of ss but mainly as dependents (spousal benefits)

Sweden

• Strong poverty reduction, strong aid to single mothers

• universal pensions reduce wage disparities

• High child support

Weakness

• Labor-market policies aimed at men

• extensive occupation segregation

• Women stereotyped as less attached to labor force, employers discriminate

• spread of part-time work for family, increases involuntary part-time work

LGBTQ People

• higher rates of poverty, food insecurity, uninsurance, unemployment, housing insecurity

• receive supplemental nutrition assistance program and medicaid at high rates

Income distribution

one percent of population holds one third of the wealth

causes for income inequality

• 30% CEO and Wall street compensation

• 30% education failure - skilled workers, increasing demand, declining supply

• 20% Decline of unions

• 10% trade with low-wage countries

• 5% tax policy

• 5% immigration

basically the cis white man dominate all income percentages

Black Americans

racialization of means-tested programs

Brown reading

• Discrimination in labor, housing, education, unions

• black people forced to accept public relief as one of “major occupations”

• black people stigmatized for welfare receipt

Residential Segregation

• Redlining - black people largely excluded from federal mortgage loan guarantees until 1970s, aided white suburbanization

• Homes in white suburbs appreciate, homes in black ghettos depreciate, gov’t subsidizes white wealth creation

• continued housing discrimination and income segregation

Segregation Effects

Lack of good schools, churches, playgrounds, childcare - harder for parents to raise kids

fewer political allies - harder to get public resources for schools and attract business investment

Weaker social networks and community organizations reduces neighbors’ willingness to supervise young, increases crime

• disconnection from networks of employed people

• people associate ghettos with crime, housing decay, falling real estate prices