Transcript PPT - Physpics

Lecture 19
Inequality A Challenge to Democracy?
Civil Rights Act of 1964
• Outlawed discrimination in public
accommodations under the Interstate
Commerce Act
• No tax dollars could go to organizations that
discriminated
• Outlawed job discrimination on the basis of race,
religion, national origin, or sex
• Created the Equal Employment Opportunity
Commission (EEOC) to enforce these rules
Political Impact of Hurricane
Katrina
• Widespread sympathetic media coverage of
race and poverty of storm victims: Newsweek
article
• FEMA and director Michael Brown discredited
• Some evidence of racism in the policy
response to Katrina
• Negative media coverage of Bush
Administration
• Decline in Bush’s popularity
Affirmative Action
• Equality of opportunity vs. equality of
outcomes
• Requires businesses and universities to keep
records of minority hiring and to increase
efforts to recruit underrepresented groups
• Legally, quotas can only be imposed if a court
finds proof of intent to discriminate
Challenges to Affirmative Action
• Politically, “quota” label is used to discredit any
special treatment of a minority group.
• Claims of “reverse discrimination” against males,
whites and Asians
• Opposed by most whites and some blacks
• Now banned in some states: California, Texas
• 2005 Bollinger decisions upheld “diversity” as a
valid factor for admissions at the University of
Michigan. Strongly supported by business
groups and the military.
Conflict over Social Policies
Policy
Congress
Public
Democrat
Republican
President
Laissez-faire
An economic theory that the
federal government's only role in
the economy is to ensure a stable
supply of money.
Minimal taxation and regulation
Conservatives/Republicans
• Support of laissez-faire, operation of markets,
individualism
• Government interference with markets hurts
incentives to work and save
• Help the poor through private charity, churches,
education
Liberals/Democrats
• Markets create winners and losers
• In a complex world economy, even hard work
does not guarantee a job or savings
• Children should not suffer because their parents
are unable or unwilling to work
• Government welfare programs help the
economy by maintaining consumer demand
FDR
• Became President in 1933
• During the Great Depression the U.S. suffered
25% unemployment. End of public support for
laissez-faire and balanced budgets
• Roosevelt’s Administration instituted the New
Deal: help for the unemployed, support for labor
unions, federal minimum wage law
• FDR used public works programs and
government spending to spur on the economy
17-3b
The Evolution of Social
Welfare Policy
Social Welfare Policy
Government programs that
provide goods and services to
citizens to improve the quality
of their lives.
Social Welfare Programs
• Income maintenance programs:
welfare, Social Security
• Nutrition programs: WIC
• Health programs: Medicare
• Housing programs: Section 8
• Education programs: ESEA
• Many provided by state or local
governments
Social Security Act of 1935
• Provided social insurance programs for elderly
and disabled
• Established programs to help blind, elderly, and
dependent children
• Financed by taxes on earnings paid by both
employers and employees: 6.15% of earnings
up to $82,000
Tax Policies
• Regressive: higher taxes on low incomes
Sales, excise, and Social Security taxes
• Progressive: higher taxes on high incomes.
Progressive income tax,
estate and wealth taxes, capital gains tax
• Proportional: tax all incomes/persons equally
Flat tax, head tax, most property taxes
Most state and local taxes are regressive
Distribution of Federal Spending
Federal Spending, in $Billion
*
(*Interest rates were at historical lows in 2000-2005)
Types of Social Programs
• Entitlement: available to anyone who meets
the criteria of age, citizenship, veteran, or
disability. More political support but higher total
cost
• Means tested: only available to people who can
document low income. Less political support but
targets assistance on the needy.
Medicare
Medicaid
A social insurance
program that provides
basic hospital insurance
for doctors' bills and other
health care expenses for
people over sixty-five.
A public assistance
program that provides
publicly subsidized health
care to low-income,
disabled, and elderly
Americans.
Not means-tested.
Means tested
Welfare Myths
“Welfare recipients have more children than
the general population.”
2.5
2
1.5
1
0.5
0
Number of
Children
per
Household
Welfare
Recipients
General
Population
Welfare Myths
“Most welfare mothers are black.”
5% 4%
34%
24%
33%
Black Mothers
White Mothers
Hispanic Mothers
Asian Mothers
Other Mothers
Why Inequality Has Grown in the
US since the 1970s: Politics
• Weakness of labor unions to demand better
wages or benefits
• Increasing influence of business: PACs,
campaign finance, pre-primary
• Increasing Republican dominance of federal and
state elected offices
• The poor and minorities are harder to organize,
especially for non-presidential elections
• Declining voter turnout
• Public cynicism about government programs
discourages political involvement
Why Inequality Has Grown in the
US since the 1970s: Policies
• Less progressive federal income tax rates
• Higher rates for regressive state taxes
• Lower taxes on wealth, estates, or capital
• Cuts in welfare spending and stricter rules for
eligibility
• Little increase in federal minimum wage
• Many social programs benefit people who are
NOT poor: veterans, those over 65
Why Does Poverty Persist in the
US? – Newsweek article
• Racism and negative stereotypes
8% of whites are poor,
but 25% of blacks, 22 % of Hispanics
• Family structure: single mothers
• Low and stagnant wages
• Minorities have fewer assets: housing, savings,
education
• Isolation in housing, schools, and social
networks
Main Arguments of APSA Task
Force on Inequality
• Inequality of income and wealth has increased in
the US since 1970
• Income inequality is linked to political inequality
in voting, organizing, campaign contributions
• Politicians of BOTH parties respond to the
politically active: business, the wealthy, the
elderly
• Increasing inequality is bad for democracy
Reforms to Increase Political
Equality
• Enact policies to benefit the needs and values of
ordinary people, like health care
• Improve economic conditions for minorities
• Encourage non-governmental institutions like
unions, churches, and political parties
• Better media coverage of political issues,
candidates, and policy options