1. Indicate whether each of the following programs is a poverty program or a social insurance program.
A pension guarantee program, which provides pensions for retirees if they have lost their employment-based pension due to their employer’s bankruptcy
A pension guarantee program is a social insurance program. The possibility of an employer declaring bankruptcy and defaulting on its obligation to pay employee pensions creates insecurity. By providing pension income to those employees, such a program alleviates this source of economic insecurity.
The federal program known as SCHIP, which provides health care for children in families that are above the poverty threshold but still have relatively low income
The SCHIP program is a poverty program. By providing health care to children in low-income households, it targets its spending specifically to the poor.
The Section 8 housing program, which provides housing subsidies for low-income households
The Section 8 housing program is a poverty program. By targeting its support to low-income households, it specifically helps the poor.
The federal flood program, which provides financial help to communities hit by major floods
The federal flood program is a social insurance program. For many people, the majority of their wealth is tied up in the home they own. The potential for a loss of that wealth creates economic insecurity. By providing assistance to those hit by a major flood, the program alleviates this source of insecurity.