Topic 3.2 Notes Safety Nets

Topic 3.2 Providing a Safety Net

Objectives
1. Summarize the U.S. political debate on ways to fight poverty.
2. Describe the main programs through which the government redistributes income.

In a free market some people are very rich, some are very poor and most are in between. So how do societies care for the old, poor and young?

Poverty Threshold – An income level below that which is needed to support families or households.

The poverty threshold fluctuates and is determined by the government. What can the government do to combat poverty? What should it do? Is government regulation the best way to help the poor?

Welfare – A general term that refers to government aid to the poor.

There are many government redistribution programs to help those in need.

• Social Security

• Unemployment Insurance

• Workers’ Compensation

• Medicare/Medicaid

• Education