Social Insurance Programs in the United States

The United States has several social insurance programs that are in operation. The social
insurance programs are funded by taxes and include social security, Medicare, disability
insurance, and unemployment insurance. In analyzing the effectiveness of social insurance
programs, it is important to understand socioeconomic resources are not evenly distributed.
Inequalities characterize the economy of the United States (Shahidi et al., 2019). Social policies
have thus been developed to correct the situation. Social insurance programs are effective in
creating a buffer and cushioning the citizens of the United States against socioeconomic
problems. The government can provide social assistance through social insurance programs
(Shahidi et al., 2019). Households living in poverty can access a certain level of income
support. Citizens from poor households either get direct cash transfers or various in-kind
benefits. One of the main impacts of social insurance programs is that they help in boosting the
purchasing power of individuals. People are also discouraged from harmful exposures and are in
turn encouraged to adopt measures that are beneficial.
Social insurance policies are affected by both politics and socioeconomic forces. When
the economy is contracting, many people are left poor. The implication is that many people have
to be given the benefits associated with social insurance policies (Faricy, 2011). In addition,
political parties take different stances on the role and implementation of social insurance
programs (Faricy, 2011). The party that is in power regulates various government aspects, such
as government spending. Both Republicans and Democrats have different ideologies in relation
to government spending and taxation. The views have an impact on how the country is run as
well as the policies adopted.

References

Faricy, C. (2011). The Politics of Social Policy in America: The Causes and Effects of Indirect
versus Direct Social Spending. The Journal of Politics, 73(1), 74-83.
doi:10.1017/s0022381610000873
Shahidi, F. V., Ramraj, C., Sod-Erdene, O., Hildebrand, V., & Siddiqi, A. (2019). The impact of
social assistance programs on population health: a systematic review of research in high-
income countries. BMC Public Health, 19(1), 1-11.