Ch 19 Synopsis

Chapter 19 – Domestic Policy

Synopsis
This chapter concentrates on the role of government in providing for the welfare of its citizens through government policies. It begins with a discussion of why and how the government became involved in the minimum requirements of life for its citizens. At one time, governments provided only the minimal resources necessary for security and order. Now, through the welfare state, most governments provide a variety of services and programs designed to shield individuals from economic insecurity and to promote increased economic equality. The promotion of welfare goals through government is controversial, however, because it requires government to choose between freedom and equality.

The Great Depression was instrumental in changing thinking about how much government intervention was needed to promote social welfare. The New Deal policies were designed to remedy the problems caused by economic stagnation, by boosting farm prices, reducing unemployment, and increasing social welfare expenditures. President Johnson’s Great Society programs carried the spirit and programs of the New Deal one step further. Comprehensive legislation was passed to redress political, social, and economic inequality. Although successful in some areas, the Great Society programs failed to achieve their goals because of administrative problems and growing indifference. Since the 1980’s, conservative thought on the importance of pursuing economic equality (rather than economic freedom) has altered the policy environment, and has particularly impacted public assistance programs. In 1996, public assistance programs were substantially altered by the Temporary Assistance to Needy Families Act. Still, government does attempt to alleviate some of the consequences of economic adversity, using social insurance programs such as those defined through the Social Security Act of 1935. Although there are questions about the financial viability of the system in the future, making significant changes to Social Security entails too much political risk. Another program under this legislation, Medicare, has undergone attacks by conservative critics who see it as a wasteful and unnecessary intrusion of government into healthcare. Meanwhile, about 15% of Americans who are not elderly have no health insurance, and they must rely on a patchwork public system. As a result, many believe some form of health-care reform is needed. Americans disagree over public policies in these areas because they disagree over the need for government actions, the goals the government should have, and the means it should use to fulfill those goals.

Another social welfare benefit, public education, has also recently been the object of some reform discussion, though reforming education at the national level is difficult because it is primarily a state and local function. Both parties have substantial policy agendas on this issue, though.

Is government providing benefits fairly? Some would argue not: why should government subsidize the poor by providing non-means tested benefits? Transforming some non-means tested benefits into means-tested benefits also has allure during times of budget crises.