Examine the efficacy of US welfare programs. What do such programs intend to accomplish?

Humanities

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Examine the efficacy of U.S. welfare programs. What do such programs intend to accomplish? What are some criticisms against them? Be sure to cite specific academic examples, not just ones from your opinion.

Must have TWO references:

Reading

Introduction

Welcome to Week 6 of POLI330. This week, we will explore the economy, including the impact that governments have upon economic matters and the cost of welfare programs.

The Global Political Economy

The paths that take nations to democracy are rarely straight, and never identical. The same can be said for those societies opting to embrace a market economy. The most successful economic system currently is capitalism, but capitalism has evolved and continues to evolve differently in various countries around the world. Political scientists measure these changes alongside the systems’ roots in, and influence on, the political world.

For half of the last century, many countries around the world operated under an economic system different from capitalism. The Cold War between the communist Soviet Union and the capitalist Western world has guided much of the international and domestic politics of the past 60 years. As communism eroded in the face of global markets, however, even the largest of the communist superpowers (Russia and China) moved toward market-based economies. Capitalist countries have also seen changes in the market over the past 75 years. The “free market” does not exactly exist in any democratic country because concerns about social well-being have caused most governments to establish some kind of safety net to protect populations from the harsh realities of the market. Programs such as Social Security are examples of this safety net in the United States.

Theoretical distinctions can be made between different democratic countries, and their economic development. An example of such a distinction presented in the field of political science categorizes countries’ economic systems based on how active the government is in the economy. Gosta Esping-Anderson (1990) writes in the book The Three Worlds of Welfare Capitalism that these economies can be categorized as laissez-faire, corporatist, or social democratic. Laissez-faire economies are those that remain most closely tied to the free market. Governments in these states have little democratic control over the economy and tend to allow the market to control prices and income distribution. Corporatist economies have strong centralized governments attempting to balance income distribution and market concerns between the democratic population and the private sector. Social-democratic countries are those in which the government owns many social services and heavily regulates private industry.

As you might imagine, with so many different economies operating in the world, the international sphere as a whole has an economy of its own. Countries have to compete for business, and businesses have to compete for consumers. Trade agreements and restrictions are established to make these competitions equitable and productive. As Russia and China become increasingly powerful on the world economic stage, the international political and economic landscape will continue to change. The emergence of new economic powers is not the only pressure on the international economy, however. Political issues such as wages, immigration, export controls, taxes, and employment all factor into decisions that impact global markets. Citizens are going to have to make difficult decisions relating to many concerns of this new global environment in the coming years. Should national sovereignty be given to international organizations? Should businesses that pay low wages in other countries be allowed to import goods? Must governments ultimately regulate the economy, or can the free market solve these problems without interference?

Closer to Home

The American economic system is very complex. It is considered a laissez-faire economy, but as mentioned above, this does not mean that it operates in an entirely free market. There are rules and regulations in place to protect the market, and the businesses and people operating within it. Some of these safeguards developed during a period known as the New Deal, under President Franklin D. Roosevelt, as a means of lessening the impact of the Great Depression. These protections are referred to as welfare programs.

Welfare is a term applied to social programs that contribute to the overall welfare of the citizens and these type of programs usually develop when there is a great need within the populace. For example, during The Great Depression, inflation rates made the dollar lose its previous value. This resulted in the suffering of a large portion of the population, because many could not pay their bills or buy basic necessities, such as food. Adding to this issue was the lack of food to go around. Technological advances, spurred by the Industrial Revolution, made the farming process less laborious, allowing for larger and larger amounts of crops to be produced. Although this produced more food for a while, it also dropped the price of food, given the basic law of supply and demand, which shows that if the supply of a product rises above the demand for the product, prices will fall. On a side note, in illustrating this in reverse, remember that when the demand for a product rises above the supply of a product, prices will rise. To ensure that you fully grasp this concept, take a moment to quiz yourself with the tool below.

Drag each of the terms below to the most appropriate column.

If rises higher than the need for a product, causes prices to decrease for the product

If rises higher than the amount of product available, causes prices to increase for the product

DemandSupply

With the fall in prices, farmers who had mortgaged their homes and land to afford new farming equipment lost it all, because they could no longer earn enough to pay off their loans. In addition, the new technology contributed to overfarming of much of the land, which stripped needed nutrients from the soil, making it unfarmable for some time. This led to a phenomenon known as The Dust Bowl. With the upper layer of soil missing from much of the farmland in the Midwest, the large amount of dust caused great dust storms as bad as blizzards. Food production suffered because of limited farmland, causing supply to decrease, raising the price of food again. But given the state of inflation during this time, the average person could not keep up with these costs. This caused the government to step in to try to provide for the people and stabilize costs.

Although welfare programs serve purposes, they are not free. The problem of paying for them falls on every nation that offers them, which is why there is always much deliberation regarding these programs. The United States offers far fewer social programs than its European allies—based upon its laissez-faire approach—and yet there is always much discussion about their existence. American conservatives tend to support a reduction in funding of such programs, whereas liberals usually argue for an increase in their funding. No matter which side of the debate you fall on, there is little doubt that for now, the question as to whether or not their cost outweighs their benefit will continue.

Summary

In the matter of economics, it is clear that a country’s politics come into play. Decisions regarding regulation of economic matters have a direct impact on a government’s success. With this in mind, it is important to keep a watchful eye on all matters pertaining to these key factors.

Grading Rubric:

Discussion Criteria	Outstanding or higher level of performance	Very good or high level of performance	Competent or satisfactory level of performance	Poor or failing or unsatisfactory level of performance
Initial Post Content	Addresses all aspects of the initial discussion question(s), applying experiences, knowledge, and understanding regarding all weeklyconcepts.	Addresses most aspects of the initial discussion question(s), applying experiences, knowledge, and understanding of most of the weeklyconcepts	Addresses some aspects of the initial discussion question(s), applying experiences, knowledge, and understanding of some of the weeklyconcepts.	Minimally addresses the initial discussion question(s) or does not address the initial question(s).
Initial Post Evidence & Sources	Integrates evidence to support discussion from assigned readings** OR online lessons, AND at least one outside scholarly source.*** Sources are credited.*	Integrates evidence to support discussion from assigned readings** OR online lessons. Sources are credited.*	Integrates evidence to support discussion only from an outside source with no mention of assigned reading** or lesson. Sources are credited.*	Does not integrate any evidence.
Follow-Up Post 1	Response furthers the dialogue by providing more information and clarification, thereby adding much depth to the discussion.	Response furthers the dialogue by adding some depth to the discussion.	Response does not further the dialogue significantly; adds little depth to the discussion.	Does not respond to another student or instructor.
Follow-Up Post 2	Response furthers the dialogue by providing more information and clarification, thereby adding much depth to the discussion.	Response furthers the dialogue by adding some depth to the discussion.	Response does not further the dialogue significantly; adds little depth to the discussion.	Does not respond to another student or instructor.
Professional Communication	Presents information using clear and concise language in an organized manner (minimal errors in English grammar, spelling, syntax, and punctuation).	Presents information in an organized manner (few errorsin English grammar, spelling, syntax, and punctuation).	Presents information using understandable language but is somewhat disorganized (some errors in English grammar, spelling, syntax, and punctuation).	Presents information that is not clear, logical, professional or organized to the point that the reader has difficulty understanding the message (numerous errors in English grammar, spelling, syntax, and/or punctuation).
Timeliness of Responses	Student posts an answer to the initial discussion question(s) by Wednesday, 11:59 p.m. M.T.		Student does not post an answer to the initial discussion question(s) by Wednesday, 11:59 p.m. M.T.
Frequency of Responses	Posts in the discussion on two different days.		Posts fewer than two different days OR does not participate at all.