Chapter 5 outline(1).docx - CHAPTER 5 OLD AGE AND THE...

Info icon This preview shows pages 1–2. Sign up to view the full content.

CHAPTER 5. OLD AGE AND THE WELFARE STATE CHAPTER OUTLINE I. Social Programs of the Welfare State Before 1935 the U.S. had no national social welfare programs. The Social Security Act of 1935 was a turning point in American history. Two programs for the elderly were created: Social Security for retired workers and Old Age Assistance for the aged poor. Later, disability insurance was created for workers who were unable to work due to illness or injury. In 1965 the Older Americans Act was enacted to offer an array of social services designed to help older people remain independent. There are three major programs of the U.S. welfare state. a. Public Assistance - This program provides benefits for the very needy. It is based on eligibility requirements specifying who can apply for the benefits and the conditions that must be met to receive the benefits. Public assistance benefits have their origins in the sixteenth-century British system of poor relief and are paid for through income taxes. Usually paid for with progressive taxes: the higher your income, the higher your taxes. b. Social Insurance - The central principle of social insurance is that it is an earned entitlement. It promotes equality by providing economic security over the life course and preventing people from falling into destitution. Social insurance benefits are paid for through payroll taxes, which are considered contributions. c. Fiscal Welfare - This program operates through tax expenditures or tax breaks. It consists of indirect payments to individuals through the tax system. Tax expenditures are inherently unequal in their impact because the individuals receiving the same income pay at a different rate. II. The Organization of the American Welfare State The Social Security Act of 1935 is the cornerstone of the American welfare state. This bill created two programs for the elderly: Social Security and Old Age Assistance. Two other health insurance programs, Medicare and Medicaid, were established in 1965 with the passage of the Older Americans Act.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '18

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern