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11 Cards in this Set
- Front
- Back
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Poverty Line
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$21,200 for a family of 4
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Poverty
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1 in 5 US children, minorities have higher levels than average
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Gini Coefficient
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way of explaining income equality
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Social Security
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Largest Federal program, money for retirees and people who are unable to work. A redistribution of funds over many generations
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Entitlement program
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based on how long you worked; how much you earned
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Types of Social Security Beneficiaries
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retirement, disability, family benefits, survivor, and Medicare
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Social security funds
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financed through payroll tax on employer and employee. 7.65% of paycheck goes to FICA until pay is $106,800 (in 2009) – maximum annual payment of $6,621 because of this, the payroll tax is regressive
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Means tested programs
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To qualify, an individual must satisfy a means test
Associated with income; based on need In general, benefit the poor Typically welfare/charity programs |
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Types of means tested programs
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Food Stamps, Aid to Families w/Dependent Children, Welfare reform options
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Personal Responsibility and Work Opportunity Reconciliation Act (1996)
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Ended AFDC, created Temporary Assistance for Needy Families (TANF)
Time limits on benefits (5 yrs) Requirements to work (or prepare to work) Enforced child support States run their own programs |
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Social Security reforms
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Current system makes safe investments, a move to privatization leads to riskier investments, but a much lower cost to the government
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