Serena Huang

AP Govt 4
4/26/2014
Chapter 19

1. Americans are sharply divided on how much govt should do to care for the needy. Some Americans believe that
people should take responsibility for their own mistakes even if that means they must live in poverty they put their
faith in the free market and believe that the economy will provide opportunities for those with ambition and a
willingness to work hard. Other Americans believe that govt must step in to help the needy through social programs
such as job training, public assistance, etc. and they believe that the free market is often unfair, leaving some behind
because of their race or gender, and that the govt should provide a safety net against poverty and prejudice.

2. The nation has been debating the federal govts role in promoting the general welfare from the beginning of the
Republic. Some Americans ask whether govt should be involved at all in social policies such as child care, help for
the needy, and the job training, all of which were once thought of as purely private, religious, or charitable
responsibilities. The two political parties tend to divide sharply in this debate along these ideological lines.
Republicans believe that the national govt is part of the problem, not the solution, to poverty and other social ills
because it gets in the way of the free market. In contrast, Democrats are more likely to believe that only the national
govt has the resources and jurisdiction to provide programs that make sure all Americans are protected from the
occasional failures of the free market system.

3. An early committed to rugged individuals meant that govt, be it local, state, or national, played only a limited
role in peoples lives. The Continental Congress actually established the nations first social security system well
before the new govt was even created. Once established in the 1780s, the first social security system for veterans
expanded slowly but steadily as the soldiers aged into disability or poverty. These early programs set two important
precedents for contemporary domestic policy: (1) they established the notion that some Americans would
automatically entitled to certain govt benefits in the basis of an eligibility requirement such as military service.
Entitlements: programs such as disability that provide benefits to any citizen who is eligible. (2) These early
programs also established govts right to restrict some benefits only to those citizens who could actually prove their
need for help. Means-Tested Entitlements: programs such as Medicaid and Welfare where citizens must prove they
meet the requirements to get the govts help.

4. Categorical Aid: programs that are restricted to on group of citizens, such as students, farmers, elderly, etc. The
first goal is to protect citizens against poverty and personal misfortune, whether by providing relief for unemployed
workers, health care for the elderly, emergency shelter for the homeless, or school lunches for poor children, almost
all of which are available to citizens only on the basis of a means test. The nation continues to distinguish between
the worthy and unworthy poor, but the govt created two very different federal programs to protect all Americans
from hardship. Public Assistant: govt aid for the poor, or known as welfare. It created a precedent for many of the
federal govts later antipoverty programs. Corporate Welfare: also provided by the govt to favored industries such
as agriculture and steel. Middle Class Welfare: to college students, homebuyers, and citizenry through tax
deductions for home mortgages, college grant, etc. Social insurance: a term that refers to govt programs that
provide benefits to anyone who is eligible either because of past service (veterans) or payments of some kind (social
security).

5. In 1933, FDR put the New Deal into practice where the federal govt began making loans to states and localities
to help the poor, and soon it launched a long list of programs to help older Americans (social security), the jobless
(unemployment) and the poor (AFDC). The first 100 days of the administration produced the most significant list of
legislation ever passed in American history the Federal Emergency Relief Administration, Civil Works, etc. The
Alphabet agencies created a host of new programs to help the poor WPA, CCC. The federal govt would have a
role not just in rebuilding the economy but in providing a national safety net to catch those in need. The New Deal is
explained as the big bang of domestic policy.

6. Social Security was enacted in 1935 and stands today as the govts most popular social program. It was designed
to meet 2 goals: (1) to provide a minimum income floor for poor beneficiaries. (2) to ensure that benefits bear a
relationship to the amount of payroll taxes a beneficiary actually paid. Employees had to pay a 7.65% tax on all
wages up to $84,900 in 2002, which their employers had to match dollar for dollar. Because people are living longer,
the future financial stability of SS has become a major political issue. When the baby boomers retire, the number of
people receiving benefits will increase in proportion to those contributing to the system. This increase would not be
a problem if the money being contributed to SS by todays workers were put away for their eventual retirement-but
much of the money from todays workers goes to pay for todays retirees. SS is thus a transfer program where
todays workers finance the retirement of todays elderly.

7. In 1960s became known as the Great Society: programs that dramatically increased the role of the federal govt
in education like food stamps, Head Start, Medicaid, Supplemental Security Income, and Housing Assistance.
Medicare: the federal govt pays all of the reasonable costs of all inpatient hospital care, including drugs, surgery,
and postoperative care, regardless of the beneficiary personal wealth. Like SS, it is purchased through payroll
taxes. The Great Society also produced a long list of important changes in other social policies, including the Civil
Rights Act of 1964, Food Stamp Act of 1965, Elementary and Secondary Education Act of 1965, Higher Education
of 1965, Department of Housing and Urban Development Act of 1965, Child Act of 1966, Fair Packaging and
Labeling Act of 1966, Age Discrimination Act of 1967, Housing and Urban Development ve of 1968, Open
Housing Act of 1968, and Omnibus Crime Control and Safe Street Act of 1968.

8. Congress established the school lunch program during the New Deal as both a way to help feed the hungry and to
strengthen the ailing farm economy. The Federal Surplus Relief Corporation began purchasing surplus agricultural
products for needy families in 1935, and launched the nations first school lunch programs for poor children. By
1941, more than 5 million children were receiving free school lunches, consuming more than 450 million pounds of
surplus pork, dairy products, and bread. Although the program was disbanded during WWII because of food
shortages, it was restored under the 1946 National School Lunch Act.

9. Changing entitlement programs will meet opposition and resistance, as many Americans will either be needing
them or already on those programs to scrape by.

10. The Personal Responsibility and Work Opportunity Reconciliation Act was passed in 1996 by Clinton. The bills
aimed to have individuals take more responsibility for themselves and work, not just take welfare. States were given
the burden of administering the new program. The federal govt provides the block grants of money and requires
that states match those funds. Under the new rules, federally funded assistance is limited to 5 years over a persons
lifetime, and all recipients must enter some kind of work training program within two months of receiving initial
benefits. The main goal of this: find work soon.

11. a) The federal govt supports medical research and has increased its role in health care cost control and access as
the countrys most private health care system is beset by rising costs, increasing numbers of uninsured Americans,
unnecessary procedures, endless paperwork, high litigation costs, avoidable illnesses, and limited access.
b) The cost of healthcare has nearly quadrupled since the 1970. Although it has slowed with the rest of the economy
in 2001, costs are expected to escalate within the next two decades. All Americans pay a large share of the costs of
health insurance; 6% of employee compensation is the cost of health care. Consumers pay more through private
insurance premiums, deductibles, or copayments for services. Taxpayers pay for the increases through federal
dollars that might otherwise go to other programs such as homeland security, college loans, or highway
construction. The good news is that costs have risen in part because people live longer. Life expectancy has
increased by more than 5 years between 1970 and 1995. As people live longer, they place greater demands on the
health care system, as well on the social security program. New technology will also increase the cost of health care.
c) Access to insurance has been limited in some ways for some 60 million Americans. Although some rely on public
clinics, emergency room care, or charity, many people go without any health or dental care. Many of the uninsured
have jobs, but their employers do not provide health insurance, and because their incomes are above the poverty line,
they do not qualify for Medicaid.

12. Medicare was created in 1965 to provide basic health services for poor families. Medicare is when the federal
govt pays all of the reasonable costs of all inpatient hospital care, including drugs, surgery, and postoperative care,
regardless of the beneficiary' personal wealth. Like SS, it is "purchased through payroll taxes; it was the National
Health Insurance program for the elderly and disabled.

13. As people live longer, they place greater demands on the health care system- new and advanced medical
technology have all increased the costs of health care and placed greater demands on other social policies such as
social security. Some physicians claim that they have to perform procedures that are medically unnecessary but are
legally essential to reduce the risk of being sued by patients. The cost of malpractice insurance in the US is 9 times
that in Canada. Parts of the health care problems are avoidable- smoking, etc. 44 million Americans are not covered
by Medicaid and they have no health Insurance. Postponing medical care because they cant afford it, these people
then drive the cost of medical care up because critical care is much more expensive than preventative care or early
treatment.

14. Health care is mostly a private system because most people can not afford the rising costs of preventive care.

15. a) Single Payer- a system where the national govt, using broad-based taxes, covers the cost of health care and
hospitalization and sets the rates. Like the system in Canada, it would provide universal coverage to ALL Americans.
Many oppose due to costs, increase in taxes, decrease in services and technological advances. b) Managed
competition - a purchasing strategy to obtain maximum value for consumers and employers, using rules for
competition derived from microeconomic principles. c) Employer-Mandated Coverage- currently more than 160
million Americans get some form of medical insurance as a benefit of their job. The cost of health care for small
businesses may be 10-40% higher than for large businesses. d) Spending Caps- the cost of providing health care
each year consumes a larger and larger share of our gross domestic product, some have proposed that the national
govt impose an overall spending cap on health care that applies not only to public expenditures, but private ones as
well. e) Individual Responsibility for Coverage- proposal to apply a free market approach to health care by
abolishing ALL employer-provided benefits and encouraging individuals to buy health insurance on their own, in
much the same way that individuals are responsible for purchasing their own auto insurance. If individuals
purchased their own health insurance, they might pay more attention to the costs and monitor their fees more closely.
f) Medical Savings Accounts- individuals can make tax-deductible contributions of $1462 a year to a special
medical savings account that can be used to pay medical expenses. Withdrawals for other purposes are taxable and
subject to withdrawal penalty. Would be an incentive to spend their own money more carefully. g) Prepaid Health
Plans- HMOs (health maintenance organizations) where individuals or their employers pay a set amount for each
person covered each year in return for healthcare and hospital coverage. There are no national standards of
healthcare quality, and HMOs arent held to any standards.

16.

17. The federal govt has been a part of education since the Northwest Ordinance of 1785. Congress set aside one
section in each township for support of a public school. In 1862, the Morrill Land Grant Act provided grants of land
to states for universities specializing in the mechanical or agricultural arts. U.S. Office of Education was established
in 1867 to oversee these programs, but the scope of the federal involvement was modest by todays standards. The
G.I. Bill helped provide college education for 20 million WWII veterans. During the Cold War, education was part
of national defense. When Soviet Union launched Sputnik, Congress passed National Defense Education Act to
upgrade science, language, and math courses. Over the years, the federal govt has been reluctant to make
investments in poor school districts. It has also tried to help children from those districts. In 1964, Congress created
the Head Start program for preschool children. The needy children would get help learning and understanding how
to read and understand numbers. Many also worked with parents to encourage greater involvement and literacy.
Another act was passed by Congress in 1965 called the Elementary and Secondary Education Act (ESEA). ESEA
supplied educational materials for underprivileged public school students and provided funding for research on how
to assist children from disadvantaged backgrounds. The act was amended to provide federal support for special
education, as well as an additional funding on textbooks, teacher training, and other support for poor schools. In
2005, the federal govt spent about $38 billion on local education or barely 9% of total school spending. During the
1990s, the federal govt actively helped improve the local education by setting national goals for student
achievement then passing the No Child Left Behind Act in 2001. In return for federal funding, states were required
to annually test at least 95% of all 3rd and 8th graders in reading and math. In addition, states were required to grade
schools in passing or failing, set higher standards for teachers, and give students in failing schools the option to
move to higher-performing schools. For college students, the federal govt has contributed nearly 70% or $23 billion
for financial aid. pell grants for low-income students and low-interest guaranteed student loans continue to be the
most available and most used subsidies for college expenses. In 1998, Congress added 3 new programs: GEAR-UP,
Learning Anytime Anywhere Partnerships (LAAP), and a new initiative design to improve teacher quality in
primary and elementary schools.

18. The federal govt acts more as a banker than a police officer, providing grants to states and local govt s to hire
their own police officers, build more prisons, improve drug enforcement, and prosecute organized crime. The federal
govt must enforce its own laws against everything from counterfeiting to pollution while protecting its borders and
preventing drugs from flowing into the country. Congress has intervened on such matters as gun control because
guns are manufactured and transported across state lines. Congress has the power to regulate sales and ownership of
weapons and assault rifles and set age minimums for purchase of handguns and long guns such as rifles and
shotguns. In 1993, Congress passed landmark legislation imposing a waitlist on purchase of handguns. Under the
Brady Handgun Violence Prevention Act, federally licensed firearms dealers have 5 days to check with local law
enforcement officials regarding the background of a potential purchaser. If local law enforcement officials fail to
respond within 5 business days, the handgun could be sold. In 1994, Congress passed an omnibus anti-crime bill that
authorized over $30 billion in spending on federal crime initiatives.

19. The federal govt enforces its laws primarily through the Department of Justice. The FBI was created in 1908
and is in charge of gathering and reporting evidence in matters relating to federal criminal laws. They also provide
investigation services on a cooperative basis to local law enforcement in fingerprint identification and laboratory
services. The FBI is a part of the Department of Justice. The Drug Enforcement Agency (DEA), which is
responsible for preventing the flow of illegal narcotics into the US, patrolling US borders, and conducting joint
operations with countries where drugs are produced. Other agencies include the Bureau of Alcohol, Tobacco and
Firearms, which monitors the sale of destructive weapons and guns inside the US, regulates alcoholic beverage
production, and oversees the collection of taxes on alcohol and tobacco. Congress created the Department of
Homeland Security following the September 11, 2001 terrorist attack. Under the USA PATRIOT (Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism) Act of 2001,
the federal govt was given sweeping authority to conduct secret investigations of suspected terrorists using roving
wiretaps to intercept conversations on any phones that a suspect might use, and detain any citizens believed to be a
national security risk for up to 7 days being charged without a crime.

20. a) In 1993, Congress passed the Brady Handgun Violence Prevention Act, federally licensed firearms dealers
have five days to check with local law enforcement officials regarding the background of a potential purchaser. If
local law enforcement officials fail to respond within five business days, the handgun can be sold. The National
Rifle Association has power to stop most other anti-gun legislation, even though such legislation has had the support
of most police chiefs and most of the general public. The debate over gun control at the local, state, and national
levels remains intense. b) In 1994, Congress passed an omnibus anti-crime bill that authorized over $30 billion in
spending on federal crime initiatives. The money funded the hiring of as many as 100,000 new police officers and
the construction of new prisons and boot camps for juvenile offenders. It also added new assault rifle restrictions,
made a long list of federal offenses punishable by death, imposed federal penalties and programs aimed at curbing
domestic violence, and, with its three strikes and youre out provision, mandated life imprisonment upon
conviction for a third violent felony. c) Only weeks after the September 11, 2001, terrorist attacks on New York City
and Washington, D.C., Congress passed a massive anti terrorism law in October 2001 and created the new
Department of Homeland Security. The President created the Office of Homeland Security ordering a complete
reorganization of the FBI in early 2002 to create a stronger focus on preventing terrorism. Under the USA
PATRIOT Act of 2001 (Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism), the federal govt was given sweeping authority to conduct secret investigations of
suspected terrorists, use roving wiretaps to intercept conversations on any phones that a suspect might use, and
detain any noncitizens believed to be a national security risk for up to seven days without being charged with a
crime. Although the USA PATRIOT Act is not scheduled to expire until December 31, 2005, the Bush
administration made its renewal a centerpiece of the presidents 2004 State of the Union Address. Key provisions
of the Patriot Act are set to expire next year, the president told Congress. The terrorist threat will not expire on
that schedule. Our law enforcement needs this vital legislation to protect our citizens. The administration asked
Congress to expand authority to investigate what it called lone-wolf terrorists who are not affiliated with a foreign
govt or known terrorist organization such as Al-Qaeda, which planned the September 11 attacks.

21. Despite the nations current focus on terrorism and homeland security, social policy still dominates the agenda of
American politics. Welfare, health care, education, and crime and their costsare todays political battleground
between the parties and between contending interest groups. Education reform was at the forefront of the 2000
presidential election, while the war on terrorism was part of the 2004 campaign. Social policy will be part of the
federal agenda far into the future. Although Presidents and Congress cannot always know what Americans will
support and how much they are willing to pay, they can be sure that most Americans want govt to take care of
citizens who are needy through no fault of their own.

22. Physicians complain about the high cost of malpractice insurance, nine times more costly in the United States
than in Canada. Malpractice insurance costs for all physicians have more than doubled in a decade. For advanced
industrial democracies like Germany, Japan, the United Kingdom, and Canada, they are able to provide health
insurance for all citizens through either national health insurance or national health service. US outspends all these
countries in terms of health expenditures as a percentage of GDP, this high level of spending on health care does not
mean that the United States has a healthier population. The nations infant mortality rates, for instance, are among
the worst of all industrialized countries, and the United States ranks below average for industrialized nations in male
and female life expectancy at birth. The United States differs from other countries in the extent to which health care
costs are paid by public funds. Central or local govt s fund approximately three quarters of the cost of health care in
most advanced industrial democracies. In Canada, about 9% of the nations GDP is devoted to health care spending,
and all Canadians are covered by provincial health insurance. Canadas administration of health care is based on a
publicly funded system, whereas the program in the US is divided among public and private insurers. Canadas
administrative costs per patient are only 1/4th the size of ours, and companies in the US often pay 3-5 times more
than Canadian companies to fund employee health and social benefits, including taxes collected by govt s to pay for
some of these benefits. Canadians are taxed at a much higher rate than Americans, in part to pay for the publicly
funded system. In addition, patients may face delays in receiving services, especially for routine health problems and
elective surgery. Doctor and nurses salaries are also much lower in Canada than the US which caused thousands to
move from Canada to the US. Costs for health care are also increasing faster than the rate of inflation, and the
Canadian federal and provincial govts have begun to cut back on funding certain services. Nevertheless, most
Canadians express satisfaction with their health care system, and Canada manages to insure all of its people while
spending far less per capita than the United States.

23. On November 22, 2003, the House held its final vote on prescription drug coverage for older Americans.
Although most members of Congress wanted to add drug coverage to the 1965 Medicare program, Democrats and
Republicans disagreed sharply on how much the govt should provide and who should deliver the coverage.
Democrats wanted the federal govt to provide more coverage and run the program, while Republicans wanted to
provide limited coverage and allow private insurance companies to compete against each other to run the program.
Republicans controlled a majority in the House, and neither party was sure how conservative members would vote
on the $400 billion bill. If enough conservative Republicans voted to defeat their partys proposal, Democrats might
have a chance to offer their own version of prescription drug coverage. The program did nothing to help the 60
million Americans who have no health insurance at all in any given year, let alone those who have no prescription
drug coverage. Moreover, it did not address rising drug costs for Americans of any age. The faster drug costs rise,
the less valuable will be the new Medicare benefit for older Americans, and the more all Americans will need help.
Congress and the president did nothing to address the long-term financial problems facing Medicare. The Medicare
program will start to run a deficit in 2019, which means that the federal govt will have to either raise taxes or cut
benefits to cover the total cost. Unless something is done soon to control costs, Congress may yet have another tight
vote to cut the prescription drug program it just enacted.

24. The federal govt enforces its laws primarily through the Department of Justice, which contains the Federal
Bureau of Investigation (FBI). The FBI was created in 1908 and charged with gathering and reporting evidence in
matters relating to federal criminal laws. In addition, the FBI provides investigative services on a cooperative basis
to local law enforcement in fingerprint identification and laboratory services. Other law enforcement agencies of the
federal govt include the Drug Enforcement Agency (DEA), which is responsible for preventing the flow of illegal
narcotics into the United States, patrolling U.S. borders, and conducting joint operations with countries where drugs
are produced, and the Bureau of Alcohol, Tobacco and Firearms, which monitors the sale of destructive weapons
and guns inside the United States, regulates alcoholic beverage production, and oversees the collection of taxes on
alcohol and tobacco.