Public social welfare expenditures, fiscal years 1965-87

The years from 1965 to 1976 were a period of great expansion in social welfare expenditures under public law. The entry of the Federal Government into the fields of health care and education was responsible for much of the growth in the first part of this period; high inflation produced increased spending in the later years. From 1977 to 1987, the rate of growth in social welfare spending slowed considerably. In fact, since 1983 the dominant characteristic of such expenditures has been their stability. Although the amount of money spent was higher in each year, little change occurred in the relative size or the apportionment of the funds. The 1987 expenditures continued this pattern. The total amount spent, $834.4 billion, represented an increase of 6.6 percent over the previous year. This amount equaled 18.8 percent of the gross national product. In constant dollar terms, the increase from 1986 to 1987 was 1.7 percent. The Federal Government provided 60-62 percent of all social welfare funding from 1980 to 1986. In 1987, this share fell slightly--to 59.9 percent. The programs for social insurance, public aid, veterans, and housing were primarily Federally funded, while education was largely a State and local responsibility. Governments at all levels spent 53.4 percent of their funds for social insurance purposes in 1987, slightly more than in 1986. However, the experience at different levels of government varied considerably. Federal spending increased 2 percent as a percent of all Federal expenditures, while State and local spending decreased about 1 percent.     

Globalization, welfare regimes and social protection expenditures in Western and Eastern European countries

This paper analyzes the effects of globalization on social protection expenditures in European countries. The particular focus is on (a) the Eastern European countries and (b) on differences in globalization effects between welfare regimes. We find evidence in favor of the compensation hypothesis in Western Europe which is driven by the conservative welfare regime, outweighing the efficiency effect of globalization in the social-democratic welfare regime. In Eastern European countries the efficiency effect is predominant. No globalization effect is found for the liberal and the southern welfare regimes.     

An overview of OASDI revenue, expenditures, and beneficiaries, 1974-85

This article compares the revenue, expenditures, and beneficiary population under the old-age, survivors, and disability insurance program in 1984-85 with the experience for earlier years. The tables and charts presented here examine such topics as the population covered by the program, the increase in the number of beneficiaries, the rise in average benefit amounts, and the growth in the proportion of dually entitled and very old beneficiaries. Like the preceding feature, the article is based on published data of the Social Security Administration's Office of Research, Statistics, and International Policy--in this case, they come entirely from various issues of the Annual Statistical Supplement to the Social Security Bulletin.     

Worldwide trends and developments in social security, 1983-85

This article highlights the major developments and trends in social insurance programs that are presented in detail in the 1985 edition of Social Security Programs Throughout the World. The data in that reference book reflect the fact that as countries have adapted to the slow economic growth in recent years, increased emphasis has been placed on the cost effective use of social security funds. Some industrialized countries have restructured benefit provisions and reallocated resources among programs and beneficiaries to target benefits for specific groups. In the developing nations, the introduction of additional programs and expanded benefits continued on a limited scale amidst widespread concern about maintaining the real value of benefits after years of high inflation.     

Economic security, 1935-85

The economic well-being of both working and retired persons has improved significantly since the Social Security Act was passed in 1935. More people are employed now than at any time since then, despite declining employment among the aged and more years of school attendance among the young. The ratio of non-workers to workers--a broad measure of dependency--is lower now than at any time since the 1930's. Social security has grown and matured to become a strong foundation of retirement income, and other work-related employee benefits have grown in tandem with social security. Employer contributions for social insurance and related employee benefits have grown from being about a 1-percent supplement to aggregate wages and salaries in 1929 to nearly 20 percent today. Social security and Medicare account for just over a fourth of employer contributions, while other public and private retirement systems represent just over another fourth. The balance of benefits for active workers includes group health and life insurance, unemployment insurance, workers' compensation, temporary disability insurance, and related benefits. Pay for holidays, vacations, and sick leave is estimated to have increased from less than 1 percent of aggregate pay in 1929 to about 10 percent today. The improved economic status of the aged has been documented by a series of surveys beginning in 1941-42 and carried out from time to time until 1972 and biennially since 1976. The earlier surveys were supplemented with estimates from record data and tables from the Bureau of the Census. The income of the aged as a whole has grown by about 75 percent over the past 2 decades after taking inflation into account. The income of the aged as a whole grew faster than that of the nonaged in the 1970's and early 1980's when real social security benefits increased faster than inflation and wages lagged behind it. New beneficiaries in 1982 were in better health and were more likely to retire because they wanted to than was true of their counterparts in the early 1940's. Not only have benefits continued to be the main component of income of the aged as total incomes have grown, but also benefits have become much larger in relation to average earnings than used to be the case. Retired workers are much more likely now than in the early 1940's to have other pensions or income from assets to supplement benefits.(ABSTRACT TRUNCATED AT 400 WORDS)     

Public expenditures and the risk of social dominance

Public Choice - Based on the observation of an unabated trend towards higher social spending-to-GDP ratios in advanced countries, the study analyzes the risk of social dominance, a situation in...     

Status polarization of social welfare attitudes

This paper tests two competing theories of status polarization of social welfare attitudes. One theory, which can broadly be termedsocial-psychological, sees status polarization as a function of identification with social groups. The other, which can be termedeconomic, sees policy preferences as a function of the individual's expected utility from various policies. Using CPS data for the years 1956–1984, we find that the utility maximizing hypothesis has much more explanatory power for the middle and late 1970s. Social class identification, on the other hand, rivals utility maximization as an explanation of policy preferences during the years 1956–1964 and shows a slight resurgence in 1982 and 1984. These results suggest little prospect for a revival of the New Deal party coalitions, barring strong political leadership that defines issues in class terms and polarizes the electorate.     

Health care expenditures: international comparisons, 1970-80

This article is based on the findings of a study developed to compare health care costs in the United States during 1970-80 with those of six other industrially advanced countries--Canada, France, the Federal Republic of Germany, the Netherlands, Sweden, and the United Kingdom. Although health care expenditures in the United States have traditionally been relatively high, as a share of gross national product, they were exceeded in 1980 in West Germany and Sweden and equaled by the Netherlands. All the countries experienced increases in health care spending that outpaced inflation in other sectors of the economy. For the decade as a whole, the United States encountered a slower rate of growth than most of the other countries, both in terms of actual expenditures and when adjusted for inflation as measured by the Consumer Price Index. As the decade progressed, however, most of the other countries succeeded in slowing their rate of increase to a greater degree than did the United States. The data also suggest that wage inflation was less of a factor in raising the cost of health care in the United States than was the case in most of the other countries.     

Quasi‐welfare,associationalism and the social division of citizenship

It is widely acknowledged that in many advanced capitalist societies, the role and structure of the welfare state has undergone substantial changes in recent decades. Arguments continue about the precise causes, and about the trajectory and impact of those changes. One particular strand in the debate has concerned the nature of the transformation of the welfare state in relation to the wider economy, and whether these changes reflect a ‘post‐Fordist’ welfare regime; while another important theme concerns the consequences of cultural and social differentiation, and the extent to which ‘postmodernism’ entails a fundamental dissolution of conventional assumptions about social policy. Radical reconstruction of the institutions, and questioning of the functions of welfare states, are resulting in more complex and heterogeneous patterns of social provision. At the same time, increased theoretical emphasis on, and popular demand for, choice, consumerism and diversity represent a significant challenge to, and perhaps the abandonment of, longstanding precepts about universalism in welfare. This article reviews some of the key themes in this debate, and supports arguments that predict that the universalist goals and principles of welfare are likely to be displaced by moves towards a ‘marketised’ system of quasi‐welfare in an atomised, anomic and fragmented society. The article addresses several issues: first, it briefly discusses some of the main implications of recent theorising about post‐Fordism and postmodernism; secondly it considers the emergence and consequences of’ quasi‐markets’ in social policy; and finally it challenges the claim that the revival of ‘associationalism in civil society offers a remedy for some of the principal (alleged) defects of the welfare state.     

Health care expenditures in nine industrialized countries, 1960-76

This article reports the findings of a study developed to compare health care costs in the United States with those of eight other industrially advanced countries over the period 1960-76. All of the countries studied were found to share with the United States the problem of increased health care spending that has outpaced inflation in other sectors of the economy and continues to consume a growing share of national resources. The American growth rate in these expenditures has, in fact, been lower than that of all other coutries. Though U.S. health care expenditures have traditionally been relatively high when measured as a share of gross national product, Canada outspent the United States in this respect during the 1960's. In most recent years, West Germany, the Netherlands, and Sweden have devoted a larger share of GNP to health care than has the United States.     

Administering social welfare: the Reagan record.

A preliminary appraisal of the Reagan administration's management reforms in the social service sector reveals a mixed record. A variety of gains are evident as a result of both the restructuring of whole programs and the implementation of specific management techniques. An increased reliance on the use of block grants as a means of disbursing funds to the states has generally had the effect of streamlining delivery of services. Likewise, dramatic savings have been realized due to changes in the hospital payment system under Medicare. Improved financial management has benefited the Social Security system and the Department of Housing and Urban Development. On the other hand, controversial policies have been implemented with regard to Aid to Families with Dependent Children and youth employment services. Similarly, a number of important challenges, such as welfare reform, have gone unaddressed. And the administration has severely reduced research and development efforts, a policy that could have a sharply negative impact in the future. For some programs budget reductions have had the positive effect of forcing officials to concentrate available resources on high priority tasks; however, essential operations have been impaired in other cases.     

Private finance for social housing in Australia

Abstract

A significant change in the finance of social housing in the 1980s was a movement to transfer responsibility for funding to the private sector. This article argues that governments must continue to be involved in social housing finance as this movement progresses. Financing initiatives undertaken in Australia are used to signal the risks associated with the provision of social housing finance, to illustrate the mechanisms employed to manage these risks, and to highlight the conflicts that arise when a mix of public and private funding is attempted.

The article proposes the introduction of “equity bonds” as an innovative way to raise funds for social housing and to overcome inefficiencies arising from the present complex and costly administrative structures. However, a commitment to ongoing subsidies to close the full rental gap is necessary for equity bonds to serve those most in need.     

Erring on the side of kindness in social welfare policy

Social welfare administrators inevitably err, and in one of two ways: either they err on the side of harshness (denying benefits to people who deserve them), or on the side of generosity (granting benefits to those who do not deserve them). The same things making errors inevitable also make inevitable a tradeoff between these two kinds of error, so at least for a large class of cases reductions in one kind of error can be accomplished only by increasing the other. Here I develop a criterion for striking the right balance. This criterion implies (contrary to all ordinary political and administrative impulses) that when times are tough and demands on welfare budgets heavy, administrators should not clamp down on applicants but should instead bias their decisions in favor of erring on the side of generosity.This paper was written during my tenure as Research Fellow in the Social Justice Project, RSSS, Australian National University. I am grateful to my colleagues there (particularly Valerie Braithwaite, Dorothy Broom, Diane Gibson and Julian LeGrand) for their advice and encouragement, and to various anonymous referees for suggesting subsequent refinements.     

American welfare strategies: Three programs under the social security act

In the United States, a single piece of legislation, the Social Security Act, is the major vehicle through which the cash assistance to citizens is provided. This act contains many subprograms, programs so different in concept, administration and programmatic implication that many people do not know that the same piece of legislation makes them all possible. In this paper three programs—social security, unemployment compensation, and public assistance—are examined in a sociohistorical, sociocultural context. The roots of these programs are analyzed, their current operations outlined, and the policy problems currently confronting them are detailed. The ways in which the programs relate to the political mythology of the society is seen as important. Because of the continual conflicts arising out of the administration of public assistance, three special cases involving that program are mentioned.Special thanks is due to Mrs. Shirley Roles, who made many useful conceptual and editorial suggestions.