ECN 102 Lecture Notes - Lecture 19: Earned Income Tax Credit, Autarky, Supplemental Security Income
Document Summary
Official poverty level: benchmark level of income computed by the federal gov"t to track poverty over time. Poverty definition based on pretax money income, including cash transfers, but excludes the value of noncash transfers such as food stamps, medicaid, etc. Government goal: promote a healthy economy, reduce unemployment, offer greater job opportunities. Social insurance: designed to help make up for lost income of people who worked but are now tired, temporarily unemployed, or unable to work. Social security, medicare, unemployment insurance, worker"s compensation. Income assistance programs(welfare programs): provide cash and in-kind assistance to poor. Means-tested program: income and assets must be below a certain level to qualify for benefits. Temporary assistance for needy families provides cash for families with dependent children. Supplemental security income(ssi) provides cash for elderly poor and disabled. General assistance aid given to those who don"t qualify for. Earned income tax credit: supplements ages of working poor. Medicaid medical care for those with low incomes.
