Week 7: Social Welfare: Social Security

Question 1

social insurance

Answer 1

• people pay amount into publicly run social insurance fund which is also augmented by employer contributions

Question 2

what does the publicly run social insurance fund pay for?

Answer 2

various conditions (e.g sickness, unemployment, retirement)

Question 3

how are social insurance funds ‘earnings-related’ systems?

Answer 3

with some exceptions, what you receive in retirement depends on what you earned

Question 4

social insurance schemes are meant to be ___ ____, but?

Answer 4

• self-funding

- but they rarely are, and the state has to contribute

Question 5

social insurance schemes are usually considered universal in that?

Answer 5

they are not means-tested

Question 6

social assistance schemes are typically?

Answer 6

• means-tested
• flat rate (everyone gets same amount)
• payments financed from general tax revenue

Question 7

in many countries, what role does the social assistance scheme perform to the social insurance scheme?

Answer 7

• supplementary role
• more stigmatised
• lower level of support

Question 8

what are the objectives of social security

Answer 8

• poverty prevention
• poverty reduction
• poverty alleviation
• income replacement

Question 9

only australia and NZ are based on the ?

Answer 9

• social assistance model

Question 10

what is the biggest driver of growth for social security

Answer 10

-NDIS + ageing population

Question 11

why is australia’s social security system called a ‘welfare laggard’?

Answer 11

• australia spend less on social security than many other OECD countries

Question 12

what are the two key principles that australia and NZ based their social security system on

Answer 12

1. government recognises and epitomises the general community responsibility to help those in need
2. 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)

Question 13

what are the 3 categories of income support in australias social security system

Answer 13

pensions: age, disability support, payment single
allowances: newstart, parenting partnered payment, special benefit
assistance: disaster payment

Question 14

why are there rising costs in social security outlays? and where does this happen

Answer 14

• happens in countries that use social insurance models

- its due to population ageing and growth of structural unemployment

Question 15

what is one advantage of our targeted social assistance model combined with general-revenue financing?

Answer 15

• flexibility to deal with populating ageing; growth of structural unemployment

Question 16

advocacy groups claim that income support payments are adequate or inadequate?

Answer 16

inadequate

Question 17

in terms of poverty and adequacy, what is the controversy about?

Answer 17

• how to measure poverty and adequacy and what to do about it

Question 18

what is the common criticism of social assistance

Answer 18

it is

• residual
• stigmatising
• controlling
• intrusive

Question 19

it terms of criticism, social assistance is also said to create?

Answer 19

• dependency

- discourage work efforts and/ or personal savings

Question 20

what causes unemployment/ poverty traps?

Answer 20

• the interaction of the income security taper rate and the taxation system: effective marginal tax rates

Question 21

what is welfare to work 2005

Answer 21

• 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

Question 22

what was introduced by howard gov. as part of NT intervention into indigenous communities (little children are sacred report)

Answer 22

welfare quarantining

• quarantine 50-100% of welfare payments so money only spent on essentials (food, clothing, rent)
• basics card (limited to certain shops)

Question 23

rationale behind welfare quarantining?

Answer 23

• indigenous communities not looking after kids, child abuse
• effects of drug alcohol and gambling misuse
• reduce pressure from families for cash

Question 24

critique of welfare quarantining?

Answer 24

• racially discriminatory (changed racial discrimination act)
• whole communities not on ‘need’

Question 25

what are some structural changes in the economy?

Answer 25

• increase in part time, decrease in full time employment
• decline in low skilled jobs (manufacturing industries)
• increase in sole parent households
• two incomes to high skilled households, no incomes to low skilled households

Question 26

what is the most distributive form of social welfare in australia?

Answer 26

• cash payments (progressive and effective)