Providing a Safety Net

1.The poverty problem

-The poverty threshold includes people at an income level below that which is needed to support families or households. The poverty threshold is continuing to grow to this day.

-The Government's Role- the opportunities that the free market offers can lift the working poor into the middle class. As a society we recognize some responsibilities to the very young, the very old, the sick, the poor, and the disabled. For these kind of people the government tries to provide a safety net.

-The Welfare System- since the 1930's, the main government effort to ease poverty has been to collect taxes from individuals and redistribute some of those funds in the form of welfare.

-Welfare is the general term that refers to government aid for the poor. It includes many types of redistribution programs.

2. Redistribution Programs

-State and federal governments provide cash transfers, direct payments of money to poor, disabled, and retired people. The following are examples; (1) Temporary Assistance for Needy Families (TANF) (2) Social Security (3) Unemployment insurance (4) Workers' Compensation

- The government also provides poor people with in-kind benefits, goods and services provided for free or at greatly reduced prices.

-Medical Benefits are a social service that the U.S. Government provides is health insurance.

-Federal, State, and local governments all provide educational opportunities to teach poor. The federal government funds programs from preschool to college.

-Faith-Based Initiatives- the President believes that religious organizations have frequently been among the most successful groups delivering social services.

 

 

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