American Politics 101-page8

American Politics 101-page8 - Liberal Approaches-Increase...

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- Not an entitlement On the Other Hand… - Increases in the mandatory spending, especially in social policies like social security and medicare, have come to dominate the budget decisions of the American national government. Social Security - Retirement insurance: About 50 million people covered. o Forced savings, but people do a terrible job saving on their own. - Tied to income – payroll tax – but also redistributive. - Has dramatically reduced poverty rates among the aged. - Benefits are indexed. Indexing - It is when benefits automatically increase as the cost of living rises. The Social Security Debate Challenges - People are living longer. - Ratio of contributors/beneficiaries is decreasing. - Result: Social security is coming under strain and this will increase.
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Unformatted text preview: Liberal Approaches -Increase payroll taxes. -Increase % of all wages that can be taxed with payroll tax. Conservative Approaches -Allow people to invest their own contributions. -Raise eligibility age and/or reduce benefits. Medicare: Universal Health Care for Old Folks -Provides hospital insurance for all. -People can opt into care for Doctor’s Visits -Since 2003, Prescription Drug Coverage -Covers 45 million Seniors. Why is Medicare so expensive? -People are living a lot longer! -Health care is becoming more expensive, in general; and the care that seniors receive tends to be the most expensive of all! o Hip replacements Temporary Assistance to Needy Families -Means-tested -Provides assistance to indigent families with children....
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