Economic Recession and Government Policies

(1) Abstract

This paper revolves around the phenomenon of social services. In this paper comparison, of availability of social services is done with the current recessionary period. This paper shows what impact recession can cause on the availability of social services. This paper describes various ways in which government is willing to cut down the availability of social services to the public and what impacts it would cause on the well being of the people who are in need of the aid of social services. In the results and findings section, there is an in depth discussion on various reforms that the government has made or willing to make to reduce the social services and the how these changes would affect the beneficiaries.

(2) Reconstruction

Introduction

In addition to spending on military and building bridges, the government also spends on social insurance programs and other social services, such as food stamps and Medicare, which are primarily transfers of income from taxpayers to needy citizens. With the aid, of these benefits program of social services government makes an attempt to help out the needy people. Unfortunately, the recent recessionary period has affected the availability of funds that are used to support these beneficial programs. This paper also revolves around the same phenomenon that is the impact of recession on the availability of social services. This paper analyzes the extent to which recession has reduced the availability of social services and in turn what are the impacts that this reduction is causing. This paper provides a literature review about the topic providing the background and details about the topic. After giving the detailed information and background about the topic this paper talks about the results and findings.

Literature review

America adopted social services policy more than 70 years ago, and today it has become a constant part of the policy as well as the society. (Greenspan, 22) This practice had started in the form of an Act. This Act covered many key areas public welfare like old-age assistance, Federal-state public assistance, unemployment compensation, public health services, and vocational rehabilitation, social security, Medicare and food stamps. The purpose of this policy was to provide American public the economic security for their future through packages of retirement, disability and survivors insurance etc. Many people have reaped benefits with this protection. This policy also earned people with retirement, survivors and disability benefits (Goldberg, 45).

Social services are made available to people by the amount which is collected by the government when both employees and employers make their respective contributions in the form of a payroll tax. This tax was deposited as it is cut from the wages. This tax officially came to be known as the Federal Insurance Contributions Act (FICA) tax. People participate in it because they see a link between the contributions made and benefits received. (Greenspan, 22) American people take the matters of social services very seriously as it concerns their future needs. Therefore, the decisions being made with respect to this policy and its ...