In: Economics
ans....
Entitlement Programs of the federal government include Medicaid,
Medicare, Social Security, Unemployment and Welfare Programs.
Entitlement programs are rights granted to citizens and certain
non-citizens by federal law. Entitlement programs can be broken
into non-contributory and contributory programs. Non-contributory
programs are free handouts - they equal "something for nothing".
Contributory programs must be earned - they equal "something for
something".
Non-contributory Programs - Welfare
Welfare Programs include 13 separate programs to fight poverty (see
U.S. Welfare Programs) and the Medicaid Program which provides
health care to low-income Americans. Welfare Programs and Medicaid
are non-contributory, meaning recipients are entitled to the
benefits even though they have made no contributions to the
programs through taxes. Welfare Programs are targeted to low-income
individuals and families. While the programs represent a legal
right available to all Americans, the exercise of that right is
fully dependent on the level of income of the individual of family.
Only low-income Americans qualify for benefits.
Contributory Programs
Entitlement Programs also include Social Security, Medicare and
Unemployment insurance. Social Security provides retirement and
disability benefits, Medicare provides health care for elderly
Americans and Unemployment Insurance provides benefits to working
age adults out of work. All Americans and their employers must
participate in the programs by paying payroll taxes as defined by
federal law. While the programs are an entitlement available to all
Americans in order to qualify for benefits recipients must have
worked and made contributions to the programs by paying
taxes.