SOWK 5310 - Chapter 5 Poverty and Inequality

Absolute poverty - based on a fixed level of resources or threshold.

Relative poverty - Someones's situation is disadvantaged compared to another of time experience

Federal Poverty Threshold - absolute measure; determines federal assistance like food stamps; Some believe it does not accurately depict poverty because it does not consider in-kind benefits like food stamps.  Critics also argue that poverty threshold does not take into account regional costs of living, forcing people in more expensive areas to buy the cheapest items relative to someone living in a lower SEC area.

Global Poverty - The World Bank argues that global poverty should be measured on the basis of a $1/day measure

Poverty threshold is is tied to the Consumer Price Index; rises with inflation

General economic trend is that costs rise; 2 Major Inflation periods of double-digits

1. Great Depression: 1918-1922
2. Energy Crisis: Mid-to late 1970's 

19th Century Social Workers - Jane Addams founded Hull House in Chicago to reduce poverty through social change. 

Human Capital - skills education, and experience an individual brings to the marketplace. 

Progressive Era- 

1. First agenda was to eliminate government corruption; revise election procedure

Depression and the New Deal

FDR - commissioned for the New Deal providing relief for the unemployed. 

World War II and War on Poverty

ADC - Aid to Dependent Children act was established with the 1935 Social Security Act to include caretaker grants for mothers of dependent children.

Ending Welfare

PRWORA  of 1996 - Clinton came into office offering welfare reform; Designed to limit welfare expenditure. Converted open-ended entitlement to time-limited assistance and mandatory work requirements. 

• PRWORA led to a shrink of the welfare system by 59% - greatest in history

Medicaid 

• Established in 1965 under amendments to SS act; provides health insurance to low-income families and individuals. Carried out by state; Federal matching at 50 - 80 % of program costs
• Affordable Care Act extended coverage to those 133% below the poverty threshold. 

SNAP (Food Stamps)

• Administered by USDA covers 100 percent of benefit costs; administered by states. 
• Criticized for providing inadequate benefits. 

TANF

Delivered as a federal block grant to states to develop a personal employability plan; 

• Work requirements
• Lifetime Assistance
• Maintenance of efforts
• Financia rewards and penalties
• Special requirements for teen parents
• Paternity determination

Federal Housing Assistance