12 PART ONE • THE AMERICAN SYSTEM
at issue
The federal government provides benefits to certain
individuals and families. Many of these benefits are
called entitlements because you are entitled to receive
them if you meet specific requirements. If you meet
certain age requirements, you can receive a monthly
Social Security check. If you lose your job, you may
be entitled to unemployment benefits for a certain
number of weeks. If your family income is below a cer-
tain level, you typically qualify for benefits from the
Supplemental Nutrition Assistance Program (SNAP,
formerly called food stamps).
In recent years, federal entitlement spending has
ballooned. Indeed, big government has gotten bigger
in large part because Americans are receiving more
entitlement payments every year. At all levels com-
bined, government spending now has a value equiva-
lent to about 38.5 percent of total national income.
Some have argued that large-scale entitlement spend-
ing is corrupting us.THE MORE YOU GIVE PEOPLE,
THE LESS THEY’LL WANT TO WORK
Conservatives point out that entitlement transfers—
adjusted for rising prices and population growth—
are now more than seven times what they were in- (In part, this is because major programs such
as Medicare and Medicaid were first created in the
1960s.) Currently, almost half of Americans live in a
household that receives at least one government ben-
efit. If you count tax deductions, almost every house-
hold receives benefits.
Consider SNAP benefits. In 2007, 26 million
Americans received them. By 2013, almost 50 million
Americans received them. The same story applies to
Social Security disability payments. Three million peo-
ple received disability checks in 1990. Today, almost
9 million receive them. These are only some of many
similar examples.
Fewer people are now in the labor force, and those
who are work fewer hours per year. Since 2000, the labor
force participation rate has fallen continuously, even
during boom times. Many believe that increased entitle-
ment benefits have reduced people’s desire to join the
labor force. In other words, entitlements corrupt.ENTITLEMENTS ARE A NECESSARY
PART OF THE SOCIAL CONTRACT
While the statistics just presented are accurate,
political progressives do not accept the conclu-
sions drawn. They say that with an aging society,
we should expect to pay more for Social Security.
The same is true for government-financed health
care. Health-care expenses are not only driven up
by larger numbers of the elderly, but also by increas-
ingly expensive—and effective—medical procedures.
Contrary to what some have argued, Americans
are not divided between “makers” and “takers.”
At various times in our lives, we are all takers and
almost all of us are makers. As President Obama
said in his second inaugural address, “The commit-
ments we make to each other—through Medicare,
and Medicaid, and Social Security—these things do
not sap our initiative; they strengthen us. They do
not make us a nation of takers; they free us to take
the risks that make this country great.”
Americans believe in hard work just as much as
they always have. The Pew Economic Mobility Project
sampled Americans on what is essential for getting
ahead. More than 90 percent responded “hard work,”
and almost 90 percent answered “ambition.” That
doesn’t sound like corruption, does it?FOR CRITICAL ANALYSIS
Who ultimately pays for entitlement programs?DOES ENTITLEMENT SPENDING CORRUPT US?
In the 2012 elections, despite continuing economic troubles, President Obama
was reelected and the Democrats posted gains in the U.S. House and Senate. Although
Democratic victory margins were not great, some pundits argued that the results were
ominous for the Republicans. That party did poorly among growing population groups,
such as Latinos and young people. Still, it seemed likely that U.S. national elections would
remain close for many years to come.Copyright 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.