Chapter- EXpenditure Programs for the Poor Public economics
1 Chapter 8 – Expenditure Programs for the Poor Public Economics
Quick Look at Welfare Spending “ Welfare” in the United states is a patchwork of dozens of different programs All welfare programs are means-tested only individuals with sufficiently low income are eligible Programs often have other requirements related to family structure and assets
2 Quick Look at Welfare Spending • “Welfare” in the United States is a patchwork of dozens of different programs. • All welfare programs are means-tested – only individuals with sufficiently low income are eligible. • Programs often have other requirements related to family structure and assets
Quick Look at Welfare Spending Spending on welfare programs, as a fraction of gdp has more than double in the past 30 years The role of direct cash assistance has diminished. however. Subsidized health care has grown enormously
3 Quick Look at Welfare Spending • Spending on welfare programs, as a fraction of GDP, has more than double in the past 30 years. • The role of direct cash assistance has diminished, however. Subsidized health care has grown enormously
Table 8.1 Table 8.1 Expenditures on major need-tested programs (billions of dollars) Programn Federal State and local Medical care Sl31.4 S94.3 Cash aid 72.5 19.2 Food benefits 32.2 2.2 Housing benefits 29.3 5.6 Education 19.0 Services 14.2 6.5 Jobs/training 6.2 Energy aid 1.6 0.085 SOURCE: Burke [2001, pp. 7, 8]. Figures are for 2000
Table 8.1
Quick Look at Welfare Spending Table 8. 1 shows that welfare spending is a shared expense between the federal and state/local governments Subsidized medical care(mainly Medicaid) exceeded $215 billion in 2000 Cash assistance(including the Earned Income Tax Credit) exceeded $91 billion in2000
5 Quick Look at Welfare Spending • Table 8.1 shows that welfare spending is a shared expense between the federal and state/local governments. • Subsidized medical care (mainly Medicaid) exceeded $215 billion in 2000. • Cash assistance (including the Earned Income Tax Credit) exceeded $91 billion in 2000