52006200 Families and Social Policy august 13 2006

1
5200/6200Families and Social Policyaugust
13 2006
2
This week.

• POLICY PROCESS
• Today
• Thursday
• Pizza party
• International efforts to change policyone
  percent for the kids/UK
• Federalism, Values, and the Implications for
  Family Policy
• Talk about paper/handout
• Sign up for book reportsfast food nation is an
  option

3
How does policy work exactly?Follow up from last
time..
4
Where do we go from Here?

• Innovative approaches to social policy?
• Is it possible?

5
Child Poverty in the UK The UK Government is
committed to tackling the problem of child
poverty. In March 1999, the Prime Minister Tony
Blair set out a commitment to end child poverty
forever And I will set out our historic aim
that ours is the first generation to end child
poverty forever, and it will take a generation.
It is a 20-year mission but I believe it can be
done. Child poverty is a scar on Britains
soul - Gordon Brown (Chancellor of the
Exchequer, Autumn 1999)
6
Background of issue

• Public sentiment that government should play a
  major role in reducing povertytripled 1979-1995
• No official poverty linerelative low income is
  the usual measure
• A high (growing) rate of lone parenthood high
  lone parent poverty rates.
• 4 mill children below 60 of median income
• 1/3 children living family without a fulltime
  employee
• 1/8 grew up in families with persistent low
  income
• A social transfer system that was less generous
  than in much of N. Europe.
• plus problem neighborhoods social differences in
  educational achievement

7
Implementing Blairs pledge to end child poverty

• Labour party agenda included tax and benefit
  reforms (think EITC w/regular payouts)
• A work based approach to alleviating unemployment
• Improved public service in low income nhoods
• Child care and early education programs.
• work for those who cansecurity for those who
  cannot

8
UK program

• Emphasis on making sure that work pays but not
  denying benefits to who remain out of work
• More emphasis on carrots instead of sticks
• Using the tax system to raise incomes at bottom
• Increase in min.wage (6.40 in 99--9.5 in 06)
• No min wage in UK before labour party rule in 97

9
New deal for lone parents

• 15 pound per week to be involved in job training
• Child care subsidy
• Work search premium (20 pound)
• Increased parental leave with compensation
• Child tax credit (3k per child)
• Child benefit (1.5k first, 1k each other)

10
Effects?

• Claiming that interim objective of ¼ reduction in
  child poverty by 2004 is within reach.
• UK has relied heavily directly boosting the
  incomes of poor families rather than on such
  indirect approaches as encouraging work and
  marriage

11
Proportion of UK children below relative income
thresholds (before and after housing costs) 1979
to 2003-04
Source DWP (2005)
12
Impacts and changes employment

• Unemployment falls from 8 in 1996 to 5 in 2005.
• Lone mother employment rising from 44 in 1996 to
  55 in 2004.
• Children in workless households fall from 19 in
  1997 to 16 in 2003.
• But How much of this is due to welfare-to-work
  policies? Good economy?

13
Critics

• Recent report poverty only dropped by 17 not 25
• Reports efforts too diffuse.. (11 agencies
  responsible for changes)
• Tax credit system has problems with automatic
  payment (2 billion in overpayments)
• Mixed evidence on the effects of sure start in
  terms of child outcomes
• New deal only reaches a small proportion of lone
  parents

14
Lessons from the UK experience
.

• It is possible for a (rich) country with high
  child poverty to cut it in relative terms (and in
  absolute terms).
• UK policy reforms have involved both employment
  measures and improved cash transfers. Both
  needed for impact and political acceptability.
• UK measures have helped working and non-working
  poor, with modest improvements in work
  incentives, and little coercion.

15
Could it work in the US?

• More conservative public philosophy
• So 1 for the kids may not happen overnight
• in the meantimetake that approach to other
  aspects of child poverty
• Spending 60-75 billion (less than 2001 tax cut to
  top 5)
• Young children/older children
• Target program/universal program
• Importance of money
• How to improve family environments

16
Federalism, Values, and the Implications for
Policy and Analysis
17
WHAT IS AMERICAN FEDERALISM?

• sharing of power between the states and the
  national governmenthas been a major issue
  throughout U.S. history.

18
WHY IS AMERICAN FEDERALISM IMPORTANT?

• Protection against oppression
• Diversity in policy ideas
• Spreads the power around
• Policies are more responsive to local conditions

19
HAS FEDERALISM HAD THE SAME FORM SINCE THE
BEGINNING OF THIS COUNTRY?

• 1787-1865 State centered federalism
• States had most control civil war (gangs of new
  york..)
• 1865-1913 Dual Federalism
• Responsibilities divided betwn state local,
  where fed gov. depended upon primarily its
  delegated powers.
• 1913-1964 Cooperative Federalism
• Massive public projects, usually with state
  blessing. Federal gov began to share functions
  that had state's responsibility before. The New
  Deal/ WPA
• 1964-1980 Centralized Federalism
• The Great Society Richard Nixon
• 1980-1985 New Federalism
• An attempt to end federal interference in state
  affairs. States not enthusiastic because of
  unfunded mandates The Reagan Revolution.
• Coercive Federalism 1985
• Devolution Revolution Clinton

20
Values underpinning Federalism

• Individual autonomy vs. dependence.
• Work as Virtue workfare vs. welfare.
• Primacy of the family promote marriage.
• Sense of community sympathy for others.
• Two dominant ideals
• democracy freedom and equality
• capitalism freedom and private property
• Creates a tension that defines the American
  political culture
• Leads to sharp ideological divisions with
  American society

21
Applying these values to Social Policy leads to
three helping conundrums (a problem without a
visible solution)