Tuesday, May 1, 2012

Economics Notes

LAST TEST IS FRIDAY!!


Chapter 14
THE GOVERNMENT AND PUBLIC WORKS


FUNCTIONS OF GOVERNMENT (what the government does with your tax dollars)
1.     Providing Public Goods
a.    Government will use your tax money and will spend it on things that will benefit society. Etc. Parks, Museums, Ballet Companies,

2.     Redistributing Income (FICA, OASDI)

a.    SOCIAL INSURANCE PROGRAMS
ONLY FOR THE PEOPLE WHO PAID INTO THE SYSTEM
MONEY TAKEN OUT OF YOUR CHECK
FICA: Federal Insurance Contributions Act
OASDI Old Age, Survivors & Disability Insurance

1)    Social Security: Retired or Disabled (People who are unable to work)
1.     OASDI Old Age, Survivors & Disability Insurance
a.    7.65% comes out of your check
·       Survivors: Peoples, who parents died, will pay as long as the child stays in school till the age of 18.
·       Disability: People with a disability and cannot work (Workers Compensation)
·       Old Age: Old people who have paid into the system

2)    Workers Compensation
1.     For people who are injured on job or unemployment (State Money)

3)    Medicare
1.     Medical insurance for older people and disabled

b.    PUBLIC ASSISTANCE:
EVERYONE CAN GET THIS MONEY

1)    Supplemental Security Income
1.     Food Stamps
2.     Veterans and Disabled

2)    AFDC: Aid For Families with Dependent Children
1.     State program run for single parents with children
2.     If the child is 5 or younger, then the mom doesn’t have to go to work

3)    Medicaid:
1.     Insurance for LOW INCOME people




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