Week 7: Social Welfare: Social Security Flashcards
social insurance
- people pay amount into publicly run social insurance fund which is also augmented by employer contributions
what does the publicly run social insurance fund pay for?
various conditions (e.g sickness, unemployment, retirement)
how are social insurance funds ‘earnings-related’ systems?
with some exceptions, what you receive in retirement depends on what you earned
social insurance schemes are meant to be ___ ____, but?
- self-funding
- but they rarely are, and the state has to contribute
social insurance schemes are usually considered universal in that?
they are not means-tested
social assistance schemes are typically?
- means-tested
- flat rate (everyone gets same amount)
- payments financed from general tax revenue
in many countries, what role does the social assistance scheme perform to the social insurance scheme?
- supplementary role
- more stigmatised
- lower level of support
what are the objectives of social security
- poverty prevention
- poverty reduction
- poverty alleviation
- income replacement
only australia and NZ are based on the ?
- social assistance model
what is the biggest driver of growth for social security
-NDIS + ageing population
why is australia’s social security system called a ‘welfare laggard’?
- australia spend less on social security than many other OECD countries
what are the two key principles that australia and NZ based their social security system on
- government recognises and epitomises the general community responsibility to help those in need
- self responsibility
(private/market provision of income outside of the social security system is encouraged as far as possible as the income security system is seen as a safety net)
what are the 3 categories of income support in australias social security system
pensions: age, disability support, payment single
allowances: newstart, parenting partnered payment, special benefit
assistance: disaster payment
why are there rising costs in social security outlays? and where does this happen
- happens in countries that use social insurance models
- its due to population ageing and growth of structural unemployment
what is one advantage of our targeted social assistance model combined with general-revenue financing?
- flexibility to deal with populating ageing; growth of structural unemployment
advocacy groups claim that income support payments are adequate or inadequate?
inadequate
in terms of poverty and adequacy, what is the controversy about?
- how to measure poverty and adequacy and what to do about it
what is the common criticism of social assistance
it is
- residual
- stigmatising
- controlling
- intrusive
it terms of criticism, social assistance is also said to create?
- dependency
- discourage work efforts and/ or personal savings
what causes unemployment/ poverty traps?
- the interaction of the income security taper rate and the taxation system: effective marginal tax rates
what is welfare to work 2005
- increase participation in work from all australians capable of work, including welfare recipients, increases individual wellbeing and is needed to improve future standard of living
what was introduced by howard gov. as part of NT intervention into indigenous communities (little children are sacred report)
welfare quarantining
- quarantine 50-100% of welfare payments so money only spent on essentials (food, clothing, rent)
- basics card (limited to certain shops)
rationale behind welfare quarantining?
- indigenous communities not looking after kids, child abuse
- effects of drug alcohol and gambling misuse
- reduce pressure from families for cash
critique of welfare quarantining?
- racially discriminatory (changed racial discrimination act)
- whole communities not on ‘need’
