UNIT 3: CHAP 17 WELFARE STATE

WELFARE STATE

nation policies has to promote and protect economic and social well-being of people.

SOCIAL SECURITY

welfare program. working americans contribute a % of wages and they get cash benefits after retirement or if they become disabled.

CONTRIBUTORY PROGRAMS

social programs financed in whole/part by taxation/mandatory contributions by present or future people.

INDEXING

periodic process of adjusting social benefits/wages to account for increases in cost of living.

COST-OF-LIVING ADJUSTMENTS (COLAS)

changes made to benefits of the government program based on rate of inflation.

MEDICARE

national health insurance for old people and disabled.

NONCONTRIBUTORY PROGRAMS

helps people on based on NEED not the contributions they made.

MEANS TESTING

potential beneficiaries of social assistance program, establish eligibity by showing they need assistance.

MEDICAID

federal & state-financed, state operated program, gives medical service to low-income people.

SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP)

LARGEST anti-poverty program, gives people debit cards for food at most grocery stores (food stamps)

IN-KIND BENEFITS

noncash goods & services give to needy people and familes by federal gov.

TAX EXPENDITURES

subsidies in tax code that achieve social goals by lowering cose of home ownership, child raising, employer insurance & retirement pensions, reduce taxation

ENTITLEMENT

obligation of federal gov. to give payments to people/groups based on eligibility criteria/benefit rules

EQUALITY OF OPPURTUNITY

american ideal that everyone has freedom to use talents and wealth to reach fullest potential.