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In: Economics

how do entitlement programs differ from other programs?

how do entitlement programs differ from other programs?

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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.


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