ap gov unit v

Unit V: Public Policy

1. What is the difference between an “entitlement” program and a Means-tested” or public assistance program?

Entitlement programs are government programs that provide benefits to individuals based on specific eligibility criteria, such as age, disability, or income level, without regard to need. Examples include Social Security, Medicare, and unemployment insurance.

Means-tested programs, on the other hand, provide benefits only to those who meet certain income or resource requirements. Examples include Medicaid, food stamps (SNAP), and Temporary Assistance for Needy Families (TANF). These programs are designed to target assistance to those who need it most.

2. Why are entitlement programs so popular and means-tested so controversial?
   
   

Entitlement programs are popular because they provide universal benefits based on clear criteria (like age or work history), making them more acceptable to a wide range of voters. These programs are seen as earned benefits, which is why they often garner support.

Means-tested programs are more controversial because they are targeted at specific individuals and depend on economic need. Critics argue that they can create dependency, while supporters claim they are necessary to help the most vulnerable. There is also debate about the fairness of these programs and the stigma often attached to those who receive aid.

3. What is the difference between income and wealth?
   
   

   1. Income refers to the money an individual or household receives from work, investments, or other sources over a specific period of time (e.g., salaries, wages, dividends).

   2. Wealth, on the other hand, represents the total value of assets owned by an individual or household, including property, stocks, and savings. Wealth is accumulated over time, while income is earned periodically.

4. What is the “poverty line”?
   
   

   1. The poverty line is the threshold of income established by the government to determine who is considered poor. It varies by family size and is updated annually for inflation. Those with incomes below this line are eligible for public assistance and are considered to be living in poverty.

5. What is the feminization of poverty?
   
   

The feminization of poverty refers to the phenomenon where women, especially single mothers, are more likely to live in poverty than men. This can be attributed to factors such as gender wage gaps, higher rates of single motherhood, and the unequal division of unpaid domestic labor.

1. What is the role of government in affecting those above and below the “poverty line”?
   
   

   1. The government plays a crucial role in supporting those below the poverty line through means-tested programs like food assistance, healthcare (Medicaid), and temporary cash benefits. For those above the poverty line, the government helps by providing incentives for education, housing subsidies, tax cuts, and more. Government policies aim to reduce poverty by addressing both the causes of poverty and the effects of economic inequality.

2. What minority groups are consistently falling below the poverty line?
   
   

   1. Minority groups, particularly African Americans, Hispanics, Native Americans, and single mothers are consistently more likely to live below the poverty line in the United States. These groups face higher rates of discrimination, lower educational attainment, and fewer economic opportunities, which contribute to their higher poverty rates.

3. What are the differences between the following:
   
   

   1. Progressive tax: A tax system in which the rate of taxation increases as income rises. High earners pay a higher percentage of their income in taxes. Examples include the federal income tax system.

   2. Proportional tax: A tax system where the tax rate remains the same regardless of income. Everyone pays the same percentage of their income, such as with a flat tax system.

   3. Regressive tax: A tax system where lower-income individuals pay a higher percentage of their income in taxes than higher-income individuals. Sales taxes are a common example, as they take up a larger proportion of a lower-income person's earnings.

4. What is an Earned Income Tax Credit?
   
   

   1. The Earned Income Tax Credit (EITC) is a refundable tax credit aimed at helping low- to moderate-income workers. The credit is designed to reduce poverty and incentivize work by providing a financial boost to eligible working individuals and families.

5. How does the federal government give money to its citizens?
   
   

   1. The federal government provides money to its citizens through direct financial assistance programs like Social Security, unemployment benefits, disability insurance, and tax refunds. The government also provides grants and subsidies for education, housing, and healthcare to eligible individuals.

6. What was the purpose of the Welfare Reform Act of 1996? Why did the Democrats approve such legislation even though it ran counter to its platform?
   
   

   1. The Welfare Reform Act of 1996 aimed to reduce dependence on government welfare programs by promoting work, reducing long-term reliance on assistance, and shifting the responsibility for welfare programs from the federal government to state governments. Democrats approved it because it represented a shift toward a more market-driven approach and they sought to balance budget concerns and welfare reform, despite the tension with traditional liberal views.

7. What is the difference between AFDC and TANF?
   
   

   1. AFDC (Aid to Families with Dependent Children) was a federal assistance program that provided financial aid to low-income families with children.

   2. TANF (Temporary Assistance for Needy Families) replaced AFDC with a more stringent set of requirements, including work requirements and time limits on benefits. TANF emphasizes self-sufficiency and encourages recipients to work or seek employment.

8. What is the underlying problem to Social Security?
   
   

   1. The underlying problem with Social Security is that it faces long-term funding shortfalls. As the population ages and more people retire, there are fewer workers paying into the system. This demographic shift, combined with longer life expectancies, creates a financial strain on the Social Security trust fund.

9. Who can participate in FICA?
   
   

   1. FICA (Federal Insurance Contributions Act) taxes are paid by virtually all workers in the U.S. who are employed, including those working part-time, self-employed individuals, and those who earn wages subject to Social Security and Medicare taxes.

10. What are three benefits one is entitled to from Social Security?
    
    

    1. Retirement benefits: Monthly payments to retired workers based on their earnings history.

    2. Disability benefits: Monthly payments for individuals who are unable to work due to a severe disability.

    3. Survivors’ benefits: Benefits paid to family members of deceased workers, including spouses, children, and dependent parents.

11. What are three reforms advocated to fixing the Social Security dilemma?
    
    

    1. Raising the retirement age: This would address the increasing life expectancy and reduce the number of beneficiaries.

    2. Increasing payroll taxes: Raising the FICA tax rate or removing the income cap would help increase funds for the program.

    3. Privatization or personal savings accounts: Allowing individuals to invest a portion of their Social Security contributions in private accounts.