Week 4 Revision Materials PDF

**[Peter Alcock -- Understanding Poverty Chapter 14]** 1. **What does the Author Identify as being the goals of social security?** - Identifies objectives such as: 1. Poverty alleviation: provision of financial support to individuals and families in need to help them out of poverty 2...

**[Peter Alcock -- Understanding Poverty Chapter 14]** 1. **What does the Author Identify as being the goals of social security?** - Identifies objectives such as: 1. Poverty alleviation: provision of financial support to individuals and families in need to help them out of poverty 2. Income security: individuals have stable income to meet basic needs - esp. During times of unemployment, illness and retirement. 3. Social Protection: a safety net to protect vulnerable populations from economic shocks and adverse life events. 4. Redistribution of Wealth - reduce income inequality by redistributing resources from wealthier individuals to those less well-off. 5. Social Inclusion: preventing social exclusion and marginalisation 6. Economic Stability: that contributes to the overall stability by maintaining consumer spending during downturns. 1. **Which goals do you see as being most important?** - Both Poverty alleviation because this addresses the most basic need of all and the most immediate. - oftentimes alleviating the worst kinds of poverty can lead to other factors like increased social cohesion and economic growth - and the redistribution of wealth is important as it aligns with the goals of social justice 1. **What are the Disadvantages and Advantages of the various forms of social security?**   +-----------------------+-----------------------+-----------------------+ |   | Advantages | Disadvantages | +=======================+=======================+=======================+ | Social Insurance | - Predictability: | - Potentially | | | because the | excludes those | | | benefits are | who could not | | | based on | contribute (part | | | contributions - | time workers or | | | provides a sense | unemployed) | | | of security | | | | | - Funding Issue: | | | - Stability: helps | financial strain | | | to maintain | when | | | income during | contributions | | | times of | don\'t match the | | | unemployment etc. | benefits paid | | | | out. | +-----------------------+-----------------------+-----------------------+ | Means-Tested Benefits | - Targeted support: | - Stigma means | | | aids those in the | recipients may | | (housing provision) | most need (more | feel stigmatised | | | effective poverty | deterring them | | Absence of | relief) | from seeking | | contributions - a | | help. | | condition has | - More | | | happened and it works | cost-effective? | - Complexity: | | after the fact - in | Focus on | application | | application. | resources for the | process can deter | | | most vulnerable. | people/act as a | | | | barrier in | | | | accessing | | | | benefits. | | | | | | | | - Those immediately | | | | above threshold | | | | may still be in | | | | need - line can | | | | be arbitrary. | +-----------------------+-----------------------+-----------------------+ | Universal Benefits | - Inclusivity: | - Expense of | | | promotes | implementing and | | | community and | sustaining - can | | | reduces stigma | divert funds from | | | | targeted | | | - Simple: can | assistance. | | | administer | | | | without expensive | - Inefficiency: | | | and complex | wealthy | | | means-testing. | individuals | | | | receive benefits | | | | they may not | | | | need- not | | | | efficient. | +-----------------------+-----------------------+-----------------------+ | In-Kind Benefits | - Direct support: | - Limited choice - | | | provides | recipients have | | | essential service | less flexibility | | | directly - needs | in how they | | | are met | access the | | | | support | | | - Prevents misuse | | | | of funds reduces | - Can have high | | | the risk of cash | administrative | | | aid | costs | | | misappropriated. | | +-----------------------+-----------------------+-----------------------+ | Social Assistance | - Acts as a social | - Temporary | | | safety net - last | nature - seen as | | | resort for | a short term | | | individuals | solution rather | | | facing hardship | than a pathway to | | | | long-term | | | - Flexible: can | stability. | | | change to support | | | | different | - Resource strain: | | | economic | can place demands | | | conditions and | on government | | | needs. | budgets during | | | | economic | | | | downturns. | +-----------------------+-----------------------+-----------------------+ **[J.Millar's *Understanding Social security (*Chapter 1):]** 1. **Definition and Purpose of Social Security**:\ Millar defines social security as a system of protection against economic and social risks, such as unemployment, illness, disability, and old age. It aims to ensure a minimum standard of living for individuals and families who are vulnerable due to life events or circumstances beyond their control. Social security, in this sense, functions as a safety net, reducing poverty and inequality. 2. **The Role of Social Security in Welfare States**:\ The chapter emphasizes that social security is a crucial component of the broader welfare state. It links social security policies to concepts of social justice and equality, explaining how welfare systems are designed to promote social solidarity and provide basic security for all citizens. +-----------------------------------+-----------------------------------+ | **Social Protection and Economic | Protection from the economic | | Security** | risks associated with major life | | | events (e.g. unemployment, old | | | age, disability) | | | | | | Ensures minimum standard of | | | living esp. for most vulnerable. | +===================================+===================================+ | **Redistribution of Wealth** | Through taxes and social | | | contributions -- collection of | | | funds from those unemployed and | | | use them to support individuals | | | who are most vulnerable. | | | | | | Helping to reduce inequality, | | | ensuring for equitability, | | | balancing disparities in wealth. | +-----------------------------------+-----------------------------------+ | **Social Solidarity** | Members of society have a | | | collective responsibility to | | | support each other, particularly | | | those facing hardship. SS systems | | | reflect beliefs that the | | | well-being of individuals is | | | intertwined with society's | | | well-being - fostering community | | | and mutual responsibility. | +-----------------------------------+-----------------------------------+ | **Promoting Social Stability** | By offering a safety net -- helps | | | to prevent social unrest and | | | political instability, esp. | | | during times of economic | | | downturn. | +-----------------------------------+-----------------------------------+ | **Enhancing Social Inclusion** | Provision to essential services | | | and minimum income, SS helps to | | | integrate marginalised groups | | | into society. Including | | | individuals who may be excluded | | | from the labour market. | +-----------------------------------+-----------------------------------+ | **Ensuring Basic Rights** | social security is increasingly | | | seen as a fundamental right | | | rather than a charitable act or a | | | temporary solution to economic | | | hardship. This aligns with the | | | notion of universal rights---the | | | idea that all citizens, | | | regardless of their status, are | | | entitled to certain protections | | | and services. | +-----------------------------------+-----------------------------------+ | **Economic Efficiency** | As it helps people weather | | | economic shocks without resorting | | | to more disruptive responses, | | | such as migration or informal | | | labour markets. E.g. JSA allows | | | people to participate in the | | | economy. | +-----------------------------------+-----------------------------------+ | **The balancing Act of Welfare | Balancing the goals of social | | States** | protection and economic | | | efficiency. It requires | | | significant public pensing and | | | must be financially sustainable. | +-----------------------------------+-----------------------------------+ 3. **Historical Development**:\ Millar traces the evolution of social security systems, starting from early forms of social assistance to more comprehensive welfare programs in the 20th century. He highlights key historical milestones, such as the establishment of social insurance schemes in the late 19th and early 20th centuries, and the expansion of social security in response to industrialization and urbanization. 4. **Different Types of Social Security Systems**:\ The chapter introduces various models of social security systems, distinguishing between systems based on **social insurance** (funded through contributions from workers and employers) and those based on **means-tested benefits** (which provide assistance to those whose income falls below a certain threshold). Millar also touches on the debates around universal versus targeted benefits and the political and economic considerations that shape these decisions. 5. **Key Issues and Debates**:\ Millar sets the stage for later discussions by identifying several key issues in social security policy, including: - **Sustainability**: How to ensure that social security systems remain financially viable in the face of demographic changes, such as an aging population. - **Effectiveness**: Whether social security systems actually achieve their goals of reducing poverty and inequality. - **Equity**: How to design systems that are fair and meet the needs of diverse populations, including marginalized groups. - **Work and Welfare**: The relationship between social security benefits and labor market participation, including debates over the potential disincentives for work. **['Understanding Social Security: Who Benefits and Who Pays?, Farnsworth and Irving:\ ]**who benefits from social security and who bears the costs? 1. **Social Security as a Redistributive System:** - Redistributing Across social groups -- from certain groups to others such as the employed to the unemployed, young and old, (in progressive contributions) wealthier to poorer individuals - social security systems, while redistributive, can also reinforce existing inequalities due to the way they are structured. For example, a flat-rate pension system may disproportionately benefit wealthier individuals who have had higher lifetime earnings and thus contribute more. On the other hand, means-tested benefits or social insurance programs often target the poorest but may fail to cover those just above the poverty line or those with unstable work histories. - Universal benefits are more redistributive, means-tested/targeted benefits are more limited as they leave out middle-income people. - SS systems are politically contested and reflect broader political ideologies **2. Who Benefits from Social Security?:** The article explores the **beneficiaries** of social security, noting that: - The system is often **geared towards older people**, with pensions making up a significant proportion of government spending. Pensioners are not homogenous, there are significant variations in pension levels which reflect differences in lifetime earnings. - gendered nature of social security systems and how women, The article notes that women are more likely than men to engage in **unpaid caregiving.** Informal caregiving can lead to gaps in women's work-histories, making it more difficult for them to meet eligibility requirments, like pensions - young people and precarious workers are underserved in the SS system -- esp. when based on continuous employment histories - Immigrants and marginalised groups: particularly when residency requirements or national eligibility rules are in place. -- some SS is based on length of residence. When benefits are linked to length of work they may be discriminated. **3. Who Pays into the System?:** Farnsworth and Irving examine **who finances** social security systems. Contributions typically come from: - **Workers and employers**, primarily through **payroll taxes** or social security contributions. - **The state**, which often plays a role in supplementing or financing deficits in the system. - The article critiques how contributions are often **regressive**, meaning that **lower-income earners** contribute a higher proportion of their income compared to wealthier individuals. In some countries, social security contributions are capped, meaning that the wealthy pay proportionally less into the system than those with lower earnings - Informal labour markets make it harder to ensure that all workers contribute to the system -- in the onformal economy, workers are not able to or not required to contribute - leading to gaps in coverage. Precarious workers: self-employed, temp staff or gig economy workers (Uber etc.) **4. Gendered and Class-Based Inequalities:** The authors highlight that social security systems are **gendered** and **class-based**, often reproducing existing inequalities: - **Women**, particularly those who are caregivers or in part-time or precarious work, may receive lower benefits, as their contributions to the system are often less consistent or less well-paid. - Social security systems often fail to adequately account for **informal labor**, which is disproportionately carried out by women. - The **working poor** may contribute more relative to their income but receive less in benefits, creating a cycle of inequality. **5. Political Dimensions of Social Security:** Farnsworth and Irving also discuss the **political aspects** of social security. They point out that social security systems are often shaped by **political ideologies** and **public debates** about the role of the state in welfare provision. Key points include: - The role of **public opinion** in shaping social security policies, where debates around the **"deserving" vs. "undeserving" poor** influence eligibility and benefits. - Political decisions often favor the **elderly** (as a larger and more politically influential group) over other groups, which can skew resource allocation. - **Privatization** and **market-oriented reforms** have led to a reduction in the universal nature of social security systems in many countries, particularly in the global north. **6. Global Variations:** The article points out the **diverse structures** of social security systems across different countries. While wealthier countries have relatively more comprehensive systems, many developing nations rely on **informal or partial systems**, leaving large portions of their population without access to social security benefits. The authors highlight how **globalization** and **economic pressures** have led to the weakening of social security systems in many parts of the world. **7. Challenges and the Future of Social Security:** Farnsworth and Irving conclude by addressing the **challenges** facing social security systems today: - **Demographic changes**, such as aging populations, which put pressure on pension systems. - The rise of **precarious work** and **gig economies**, which undermine the contribution base for social security systems. - The need for reform to address **inequalities** and make social security systems more inclusive and effective in meeting the needs of diverse populations, including women, the young, and marginalized communities. **[Benefit \'myths\'? the accuracy and inaccuracy of Public beliefs about the benefits system by Ben Baumberg Geiger ]** Explores the gap between public beliefs and reality regarding the benefits system -- in ways that can be harmful to the system and its' beneficiaries. +-----------------------------------+-----------------------------------+ | **Misconceptions about the Size | Public opinion often | | and Cost of benefits** | overestimates the proportion of | | | government spending on benefits. | | | For example, many people believe | | | that welfare payments make up a | | | much larger share of the national | | | budget than they actually do -- | | | which fuels negative stereotypes | | | of 'welfare dependency' and | | | 'lazy' claimants -- leading to | | | calls for austerity measures | +===================================+===================================+ | **The Myth of Welfare | myth that people who receive | | dependency** | benefits are addicted to the | | | welfare system or that benefits | | | create long-term dependency. | | | Public perception often links the | | | receipt of benefits to a **lack | | | of** motivation to work, with the | | | belief that welfare payments | | | encourage people to stay | | | unemployed | | | | | | people receiving benefits are not | | | actually reluctant to work -- | | | they are on B temporarily and | | | would prefer to find work if the | | | conditions allowed. Welfare | | | dependency is a false stereotype | | | that oversimplifies the | | | complexities of the market. | +-----------------------------------+-----------------------------------+ | **Who actually claims benefits** | The profile of the benefit | | | recipient -- perceptions of | | | mostly lazy people who are | | | undeserving -- whereas in reality | | | the majority of benefit | | | recipients are working-age who | | | are either temporarily unemployed | | | or facing health issues | +-----------------------------------+-----------------------------------+ | **The myth of fraudulent claims** | Public opinions exaggerate the | | | scale of benefit fraud -- many | | | believing that large numbers | | | deliberately falsify claims to | | | receive underserved benefits. | | | | | | In reality fraud of this kind is | | | rare -- reports of fraud | +-----------------------------------+-----------------------------------+ | **The role of media and political | play a central role in shaping | | rhetoric** | public beliefs about the welfare | | | system. Political actors, | | | especially those with | | | conservative or neoliberal | | | agendas, often frame welfare | | | policies in terms of | | | **dependency**, **fraud**, and | | | **unfairness**. Which the media | | | in turn, amplifies. | | | | | | The media ocus on isolated cases | | | of fraud or misuse overshadows | | | the broader positive aspects of | | | welfare - which in turn helps the | | | public to develop unrealistic and | | | negative views. | +-----------------------------------+-----------------------------------+ | **Policy implications** | Misleading representations of | | | welfare can undermine support for | | | SS -- and lead to implementation | | | of austerity measures. | | | | | | Calls for better public education | | | on the realities of welfare | | | systems and the importance of | | | accurate information in shaping | | | public opinion. | +-----------------------------------+-----------------------------------+