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Social Policy & the American Welfare State Chapter 1 “This multimedia product and its contents are protected under copyright law. The following are prohibited by law: •Any public performance or display, including transmission of any image over a network; •Preparation of any derivative work, including the extraction, in whole or in part, of any images; •Any rental, lease, or lending of the program.”

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Social Policy & the American Welfare

State

Chapter 1

“This multimedia product and its contents are protected under copyright law. The following are prohibited by law:•Any public performance or display, including transmission of any image over a network;•Preparation of any derivative work, including the extraction, in whole or in part, of any images;•Any rental, lease, or lending of the program.”

Copyright (c) Allyn & Bacon 2010

Social Policy & the American Welfare State

o Best viewed through the lens of the political economy

o American social welfare is in transitiono A pluralistic mix of private and public services

is an overarching feature of U.S. social welfare

o Noble tradition of voluntary citizen groups taking initiative

Copyright (c) Allyn & Bacon 2010

Social Policy & the American Welfare State

o Today, private voluntary groups provide important services

o Social welfare has become big businesso Human service corporations are prominent in

nursing care, health maintenance, child care, psychiatric & substance abuse services, and corrections

o Mixed welfare economy (voluntary, governmental, & corporate sectors) coexist

Copyright (c) Allyn & Bacon 2010

What is Social Welfare Policy?

“A series of collective interventions that contribute to the general welfare by assigning claims from one set of people who are said to produce or earn the national income to another set of people who may merit compassion and charity.” (Richard Titmuss on social services)

Copyright (c) Allyn & Bacon 2010

What is Social Welfare Policy?

“Social action sanctioned by society.” (William Epstein on social policy)

A sub-set of social policy that regulates benefits and services

Influenced by the context in which benefits are provided (governmental vs private entities)

Copyright (c) Allyn & Bacon 2010

What is Social Welfare Policy?

o “Governmental social welfare policy refers to decisions made by the state; voluntary social welfare policy refers to decisions reached by nonprofit agencies; and corporate social welfare policy refers to decisions made by for-profit firms”

o Referred to as Mixed Welfare Economy

Copyright (c) Allyn & Bacon 2010

SWP & Social Problems

o SWP often develops in response to social problems.

o Not all problems become social policy.o Social welfare contributes to the maintenance

& survival of society—not just a symbol of altruism.

o “When their basic minimum needs are met, the disadvantaged are less inclined to revolt against the unequal distribution of resources” (p. 4).

Copyright (c) Allyn & Bacon 2010

SWP & Social Problems

o Through benefits help maintain stable price structures and economic growth.

o Help relieve the social & economic dislocations caused by uneven nature of economic development.

o Provides a mechanism to correct past & current injustices.

o Historically, public & non-profit sectors responsible for social welfare

Copyright (c) Allyn & Bacon 2010

Social Work & Social Policy

o Social work practice is driven by social policies

o Policies dictate: o How we do our worko Who we work witho How much we get paido The nature of services--ends

Copyright (c) Allyn & Bacon 2010

Values, Ideology, & Social Welfare Policy

o Social values are set through the lens of ideology—a framework of commonly held beliefs through which we view the world.

o SWP are shaped by social & personal values reflective of preferences of those in decision-making positions.

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SWP & Ideology

o Ideology involves assumptions on how the world works/collective social consciousness:o What has valueo What is worth living & dying foro What is good & trueo What is right

o Interconnections between values, ideology & SWP

Copyright (c) Allyn & Bacon 2010

Political Economy of American Social Welfare

o Refers to the interaction of political & economic institutions in a society

o In U.S. Democratic capitalism—o an open, representative form of government that

coexists with a market economy

Copyright (c) Allyn & Bacon 2010

Political Economy & Social Welfare

o Main function of social welfare is to modify the play of market forces and to moderate the social and economic inequities that the market generates

o Two sets of activities needed:o State provision of social serviceso State regulation of private activities to alter the lives of

citizenso This in turn will produce a state of “controlled

balance”

Copyright (c) Allyn & Bacon 2010

Political Economy & Social Welfare

o Americans are assured political rights by/through the US Constitution

o Economic rights not assured by a corresponding document—why?

o Undesirable by a free market economyo The absence of economic regulation leads to many

Americans feeling that the economy is unresponsiveo Very often the political system becomes the only

way to seek resolution/redress

Copyright (c) Allyn & Bacon 2010

Political Economics & Social Welfare

o Understanding the political economy helps to comprehend disagreements around the optimal ways to enhance the general welfare

o Stakes are high: Government, corporations, organized labor, and the social welfare industry stand to lose or gain considerable power based on how the political economy is defined

Copyright (c) Allyn & Bacon 2010

Political Economy:2 Categories

I. Economic School of thought

II. Political school of thought

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I-Economic School of Thought

Three major schools1. Keynesian

2. Classical/Free market

3. Democratic Socialization

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1. Keynesian Economics

o John Maynard Keynes-economisto Considered the architect of the modern

welfare stateo Economics forms the backbone of the

political systemo Demand or consumer-side economics

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1. Keynesian Economics

o Hypothesizes that social welfare expenditures are investments in human capital that eventually increase the national wealth by increasing productivity—increases everyone's net income

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1. Keynesian Economics

o Economic balance: Print money & spend in recession, stop printing and spending when recession is over

o Liberal perspective

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2. Conservative/Free Market Economics

o Milton Friedman: father of modern conservative economics

o The role of government should be to keep the money supply growing slowly & steadily at a rate consistent with stable prices & long-term economic growth

o Supply-side

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2. Conservative/Free Market Economics

Conservative economics argue that large social welfare programs are detrimental to society in that they:

1. Erode the work ethic

2. They are funded by tax dollars that could be invested in private sector

Copyright (c) Allyn & Bacon 2010

2. Conservative/Free Market Economics

o The highest form of social good is realized by the maximization of self-interest

o The best society is one in which everyone actively pursues their own good

o Conservative perspective

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3. Democratic Socialism

o Differs from Keynesian & Conservative in that they have a faith in the market economy but want to make it more responsive to human needs

o The fundamental nature of capitalism is anathema to advancing the public good

Copyright (c) Allyn & Bacon 2010

3. Democratic Socialism

o Contend that a system based on pursuit of profit & individual self-interest can lead only to greater inequality.

o Pursuit of profit should be replaced by the collective pursuit of the common good

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3. Democratic Socialism

o A socialist economic systemo Social welfare programs provide just

enough sustenance to discourage revolution but not enough to make a real difference in the lives of the poor

o Radical perspective

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II-Political School of Thought

o Major American ideologies:o (neo) Liberalism o (neo) Conservatism

o Shifts in government policy is driven by ideology of dominant party ideological view

o Beliefs about the public good is often dependent on the proponent’s position

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II-Political School of Thought

o Neoliberalismo The Self-Reliance Schoolo Neoconservatismo Cultural Conservatism

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Welfare Philosophers & Neoconservative Think Tanks

o Alternative vision (1970s and 1980s)o The Hoover Institution at Stanford Universityo American Enterpriseo Current implications