Summary: The Current Welfare System

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The current welfare system in U.S. could be broken down into two tracks: social insurance and public assistance. While the former one contains government-sponsored programs protecting residents who have contributed to the insurance’s trust fund through payroll taxes from social or economic risks, such as sickness and unemployment, the latter one, after screening appliers’ eligibility based on need and income, provide benefits to vulnerable population, especially to the poor, for improving their bad conditions (Katz, 1986; Edwards, Turner & Hertel-Fernandez, 2012)
Considering how to clearly differentiate these two tracks, Schillar (1976) proposed two major characteristics of social insurance which could not be found in public assistance: national

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