American Politics Today - Essentials (3rd Ed)

464 CHAPTER 14|ECONOMIC AND SOCIAL POLICY

S PRACTICE ONLINE

“Big Think” video exercise: The Free Market and Politics

c) the majority of the budget is discretionary
spending
d) members of Congress put too much pork in
budgetary bills
e) large defi cits benefi t the economy in the long run

10. Regressive taxes, like the payroll tax, means that
    compared to the wealthy, poor people spend
    __ of their income on taxes.
    a) slightly less
    b) an equal amount
    c) more
    d) considerably less
    e) none
    11. The “reserve requirement” refers to __.
    a) the interest rates the Fed charges to member banks
    b) the rate member banks charge one another on
    overnight loans
    c) the minimum activity level of the Fed’s open
    market operations
    d) the lowest price for government bonds
    e) the minimum level of money banks must always
    have on hand

SOCIAL POLICY

E Explain what we mean by social policy, discuss how the national government’s role in social policy has evolved, and
analyze the current major areas of social policy. Pages 448–61

CRITICAL THINKING AND DISCUSSION

What do you think should be the government’s responsibili-

ties in the area of social policy? Do you favor more of an “own-

ership society” or more of a direct role for the government?

PRACTICE QUIZ QUESTIONS

12. Social Security was established under the ___
    program; Medicare was established under the
    __ program.
    a) New Deal; Great Society
    b) New Deal; New Deal
    c) Great Society; Great Society
    d) Great Society; New Deal


13. The principle of the “ownership society” is that
    __.
    a) the government has responsibility for the
    people’s social welfare
    b) the government has responsibility for the
    poor’s social welfare
    c) the government has responsibility for health
    care but not education
    d) the rich have responsibility for the poor’s
    social welfare
    e) people have responsibility for their own welfare


14. The primary motivator for social policy is
    __.
    a) economic dislocation
    b) poverty

SUMMARY

Social policy is the catch-all term for government programs
that are designed to achieve a general social goal. While the
early federal government took little responsibility for social
welfare, it currently plays a signifi cant role in ensuring the
welfare of its people. The most important social programs
currently center on the issues of poverty, an aging popula-
tion, and health care. Unfortunately, the political realities of
the system make reforms diffi cult.

KEY TERMS

social policy (p. 448)

welfare (p. 448)

New Deal (p. 449)

Great Society (p. 449)

ownership society (p. 450)

Baby Boom generation (p. 452)

privatization (p. 454)

Medicare (p. 455)

Medicaid (p. 455)

entitlement (p. 455)

income support (p. 458)

Aid to Families with Dependent Children (AFDC)
(p. 459)

Temporary Assistance for Needy Families (TANF)
(p. 459)