Microcredit/microfinance

Gives people from low income an opportunity to become self-sufficient by providing a means of saving money, borrowing money, and insurance 

banking the unbankable 

provides assistance to needy individuals and families 

health care, food stamps

both provide for low income families

micro is more with savings/banks

social is more for providing basic necessities

not much research done on the effectiveness as a tool for economic growth

strenth is bringing financial services to poor 

(eventual increase in disposable income will lead to economic development and growth)

intended for poor who can demonstrate they have need.

(food stamps, medicaid)

no change in living standards

changing spending patterns

no change in tax and transfer policy

doesn't capture poverty-reducing impact of expansions in e.i.c.

no regional differences 

been around for a while

provides a more complete picture of the share of American families w/ income constraints

Alternatives to poverty analysis

NAS: updated living expenses, includes non cash benefits, deducts childcare, factors in regional c.o.l.

Relative POV: tracks poor while accounting for changes in prevailing income levels among non-poor. how they fair with middle income 

designed to provide cash assistance to single parents w/ children (moms)> change= a lot more to teen moms

replaced by TANF

2000s seemed less effective than the 90s. 

job market faltered, safety net didn't catch vulnerable

stagnant wages, rise of single families, low workskills will continue to keep pov. high

drug abuse problems, only 1 in 10 get a college degree, few employment opetions, poor health care, inadequate housing

fatalism and coal industry

monetary/nonmonetary

absolute/relative

matierial/psychological

type a. insufficient resources to meet needs of nutrition, shelter, health and education

typeb. people compare themselves to others, mostly those close by and better off

typec. vulnerability-actual or perceived risk of future poverty.

what people earn from work, but also from dividens, interest and any rents or royalties paid on properties they own

excluding capital gains

land and property

level of wealth, comfort, material goods, and necessities available to certain classes. 

closely related to quality of life

rick getting richer-poor are poorer

stagnant incomes

slack in job markets

wealth gained in stock market is kept off census

such as stocks and bonds are held by more of the uppoer class. 

less affluent hold their wealth in housing equity

financial resources

money allocation

higher rate of savings by wealthy

lower credit costs for wealthy

wealthy have more opportunities

40% carried unpaid credit 

avg amount owed is around $5100, 

topped 2.5 trillion 

9 out of every 1000 declared personal bankruptcy

new laws dropped it but didn't decrease debt

directly addresses living standard goals. 

more equal distribution will have an increase in w.b.

higher costs 

employer-provided health care is limited. 

those with nonstandard jobs have less pay/ are less likely to receive benefits.

(income and education) are main reasons for different access levels of health care

health program for families with low income and resources

means tested

wanted more people to have access

wanted it to be compulsory for all people universal

mandatory coverage

through medicaid and medicare, families are able to receive health care w/ means test

quality still isn't good 

less money for docs, less quality care

they can change the plan they have 

only give a certain amount

buy higher deductibles

limit care to community hospital

no more denials for pre-existing conditions

small business tax credits

more young adults covered on parents plans

no lifetime caps

benefit

sacrifice/redistribution

behavioral modification/revenue generation

some things are bad for you or the country- so discouraged them by making them cost mrore

cigs, alcohol

proportional

progressive

regressive

means fairness

vertical:differing treatment of people w/ dif incomes

horizontal: equal treatment of people w/ same incomes

day when nation as a whole has earned enough $ to pay off its total tax bill for the year

p. gives americans an easy way to gauge the overall tax take

n. assumes nations start working on jan. 1, and earn same amount each day

higher income find more loop holes

poor get left paying the most in taxes

reduce overall income inequality. cash transfers may be small but highly targeted to those in need. 

less effetive in reducing market based inequality

tax imposed so that the tax rate is fixed 

**this would be efficient but not equitable because the low $ would pay more

$2500 college credit available 

1098-T filed

guarantee of access to benefits based on established rights or by legislation

(over 65 get medicare)

90s showed a classic pyramid shape

recently it is broad-based, showing a young, relatively high-fertility population

spends 2.4 * as much on elderly as on children

primarily due to higher medical expenses

the elderly actually vote

all individuals eventually become adults/ elders 

private: income support by society not by state

pension, annuities

public: funds given by the state

social security

came from nothing

had to work nonstop to make a living

value family and hard work

Differences: education/military/farmer

s. better snapshot to measure economic activity, important contributor to overall welfare

w. only a simple measure, not a measure of welfare, excludes non-market activites.

ignores distribution of income and consumption

s. shows what something would cost across nations

w. cannot determine exchange rate in the short run