HAT Manifesto Part 1/3 - Rubric Cube - 250803 edit

 

Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed.

PART 6 The Economics of Labor Markets

Chapter 20 of 36 Income Inequality and Poverty

Section 15 of 20

…

Here we review some of the options policymakers consider to reduce poverty and provide a safety net

· minimum wage laws

· welfare

· negative income tax

· in-kind transfers

…

Welfare

One way to reduce poverty is for the government to supplement the incomes of the poor.

The government mainly does this is with the welfare system.

“Welfare” is a term applied to various government income-supplement programs.

…

[as of 2007…]

Temporary Assistance for Needy Families (TANF) is a program that assists families with children and no adult supporting the family.

In a typical family receiving this assistance the father is absent and the mother is raising small children.

Supplemental Security Income (SSI) provides assistance to the poor who are sick or disabled.

For both of these welfare programs, a poor person

· does not qualify for assistance just by having a low income

· must establish some additional need, such as small children or a disability

…

A common criticism of welfare programs is they create incentives for people to become dependent.

These welfare programs

· may encourage families to break up, because families qualify for financial assistance only if the father is absent

· may encourage illegitimate births, because many poor, single women qualify for assistance only if they have children

Because poor, single mothers are such a large part of the poverty problem

and because welfare programs likely raise the number of poor single mothers, critics of the welfare system assert it worsens the problems they are intended to cure.

…

The welfare system was revised in 1996, a law was passed limiting the time recipients could receive welfare payments.

Proponents of the welfare system say being a poor, single mother on welfare is a difficult existence at best.

They are skeptical many people desire such a lifestyle and assert being welfare-dependent is a situation largely put upon single mothers by society.

They point out since the early 1970s welfare benefits have declined, but the percentage of children living with one parent has risen.

(end of Mankiw summary section)

… …

From a book - "Supplemental Security Income (SSI) provides assistance to the poor who are sick or disabled." - Please give current information about the Supplemental Security Income program.

ChatGPT (on 251106):

-What is SSI?

SSI is a federal cash assistance program administered by the Social Security Administration (SSA).

It helps people who are 65 or older, or blind or disabled (at any age), and who have very low income and few assets.

Unlike Social Security retirement benefits, SSI is funded from general federal revenues, not the Social Security trust funds.

-Who is eligible? Key rules:

To receive SSI you must meet all of these:

⦁ Be age 65 + OR blind OR have a medically determinable disability (drug addiction and alcoholism are not considered a medically determinable disability).

⦁ Have limited income and resources. For example, individual resources must be above $2,000 (for couples $3,000) in most cases.

⦁ Be a U.S. citizen (or certain eligible non-citizens) and reside in one of the 50 states, DC or the Northern Mariana Islands

Territories Puerto Rico, U.S. Virgin Islands, American Samoa Guam are excluded, instead they receive block grant funding.

-How much does SSI pay?

For 2025, the monthly maximum federal SSI benefit is $967 for an individual and $1,450 for a couple.

Some states add extra amounts (state supplements) so the total may be higher in those states.

Payment is reduced by countable income and resources: e.g., income from work or other sources usually lowers the benefit.

-How many people receive SSI?

As of recent data, about 7.4 million people receive SSI benefits.

The population of recipients includes older adults, disabled adults, and children with disabilities.

-Why SSI matters

SSI provides a basic safety net for people who are elderly or disabled and cannot support themselves through work.

Because the benefit is low, most recipients are still vulnerable and may also qualify for other public programs like Medicaid.

SSI helps prevent severe poverty for qualified recipients by covering basic needs like food, shelter, and clothing for the most economically vulnerable.

… …

single mothers

shinguru mazā

シングルマザー