Social issues in the United States
Encyclopedia
Economic issues reflect the distribution of intellectual and material resources and workload in a society. The United States is both one of the most affluent countries in the world and host to a leading system of higher education. Nevertheless it is also the most unequal industrialized nation except for a few Asian city states.
is compulsory for the first 9 to 12 years of education, depending on the state. While most students graduate between 17 and 18 years of age, many states allow for the student to voluntarily remove themselves from enrollment, or "drop out" without earning a diploma.
Although some funding comes from the federal
government, public education is almost entirely funded and controlled individually by state and local governments and school districts. Within a state, primary control of the system rests with the state, which delegates authority to local authorities. Although the Department of Education
wields some authority, most powers concerning schooling remain with the states.
The funding and condition of the school system in each municipality is largely determined by the school district or local government. In affluent communities, especially those with many school-age children, the educational system tends to be more heavily funded on a per-student basis and tends to be more effective. Communities that are less affluent or have a lower proportion of families with children generally spend less money per child. Statistical information generated by the No Child Left Behind Act
, and similar acts at a state level, demonstrate the general correlation between money spent per child and academic success.
State governments since the 1970s have grappled with these issues of educational equity. Despite these attempts, in 1992, the U.S. General Accounting Office stated, "Although most states pursued strategies to supplement the local funding of poor school districts, wealthier districts in 37 states had more total (state and local combined) funding than poor districts in the 1991-92 school year. This disparity existed even after adjusting for differences in geographic and student need-related education costs." In some states, most prominently New Jersey, courts have ordered dramatically increased funding in lower income areas. In other states, legislatures have acted on their own initiative to somewhat equalize the funding available.
or a system of socialized medicine
. Health insurance
may be provided as an employee benefit, while unemployed, part-time, and self-employed workers must often pay for their own insurance. As of 2001, 41.2 million people in the United States (14.6% of the US population) had no health insurance coverage, though a significant portion of those are in the U.S. without proper documentation. By 2004, this had risen to 45 million (15.6%). The U.S. Census Bureau attributed the drop primarily to the loss of employer-provided plans due to the economic downturn and a continuation of rising costs.
A recent Harvard University
study found that medical bills are a leading cause of bankruptcy in the United States
. The study found that many declaring bankruptcy were part of the middle class
and were employed before they became ill, but had lost their health insurance by the time they declared bankruptcy. In the U.S., people leaving a job can continue with their former employer's health insurance plan under the COBRA
at a rate that is usually double the rate the employee paid while employed. When an employer-insured person loses a job due to illness and does not have sufficient resources to continue to pay for COBRA health insurance, they also lose their coverage.
Efforts to provide universal health care
in the 1960s and early 1990s floundered against widespread opposition by politicians who objected to government control of medicine and business groups which opposed further regulation of the healthcare and insurance
industries. Despite a general consensus, codified in the federal Emergency Medical Treatment and Active Labor Act
, that emergency care must be provided even to the indigent, it is not widely accepted in the United States that the availability of broader health care should be considered a right and paid for by public funds.
The minimum wage is an extremely minor part of inflation or cost of living increases. In fact, the minimum wage has not kept up with inflation over the past 30 years or so. Inflation has much more to do with monetary policy and credit.
Educational system
The U.S. educational systemEducation in the United States
Education in the United States is mainly provided by the public sector, with control and funding coming from three levels: federal, state, and local. Child education is compulsory.Public education is universally available...
is compulsory for the first 9 to 12 years of education, depending on the state. While most students graduate between 17 and 18 years of age, many states allow for the student to voluntarily remove themselves from enrollment, or "drop out" without earning a diploma.
Although some funding comes from the federal
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
government, public education is almost entirely funded and controlled individually by state and local governments and school districts. Within a state, primary control of the system rests with the state, which delegates authority to local authorities. Although the Department of Education
United States Department of Education
The United States Department of Education, also referred to as ED or the ED for Education Department, is a Cabinet-level department of the United States government...
wields some authority, most powers concerning schooling remain with the states.
The funding and condition of the school system in each municipality is largely determined by the school district or local government. In affluent communities, especially those with many school-age children, the educational system tends to be more heavily funded on a per-student basis and tends to be more effective. Communities that are less affluent or have a lower proportion of families with children generally spend less money per child. Statistical information generated by the No Child Left Behind Act
No Child Left Behind Act
The No Child Left Behind Act of 2001 is a United States Act of Congress concerning the education of children in public schools.NCLB was originally proposed by the administration of George W. Bush immediately after he took office...
, and similar acts at a state level, demonstrate the general correlation between money spent per child and academic success.
State governments since the 1970s have grappled with these issues of educational equity. Despite these attempts, in 1992, the U.S. General Accounting Office stated, "Although most states pursued strategies to supplement the local funding of poor school districts, wealthier districts in 37 states had more total (state and local combined) funding than poor districts in the 1991-92 school year. This disparity existed even after adjusting for differences in geographic and student need-related education costs." In some states, most prominently New Jersey, courts have ordered dramatically increased funding in lower income areas. In other states, legislatures have acted on their own initiative to somewhat equalize the funding available.
Access to health insurance
The United States does not have universal health careUniversal health care
Universal health care is a term referring to organized health care systems built around the principle of universal coverage for all members of society, combining mechanisms for health financing and service provision.-History:...
or a system of socialized medicine
Socialized medicine
Socialized medicine is a term used to describe a system for providing medical and hospital care for all at a nominal cost by means of government regulation of health services and subsidies derived from taxation. It is used primarily and usually pejoratively in United States political debates...
. Health insurance
Health insurance
Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is...
may be provided as an employee benefit, while unemployed, part-time, and self-employed workers must often pay for their own insurance. As of 2001, 41.2 million people in the United States (14.6% of the US population) had no health insurance coverage, though a significant portion of those are in the U.S. without proper documentation. By 2004, this had risen to 45 million (15.6%). The U.S. Census Bureau attributed the drop primarily to the loss of employer-provided plans due to the economic downturn and a continuation of rising costs.
A recent Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...
study found that medical bills are a leading cause of bankruptcy in the United States
Bankruptcy in the United States
Bankruptcy in the United States is governed under the United States Constitution which authorizes Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United States." Congress has exercised this authority several times since 1801, most recently by adopting the Bankruptcy...
. The study found that many declaring bankruptcy were part of the middle class
American middle class
The American middle class is a social class in the United States. While the concept is typically ambiguous in popular opinion and common language use, contemporary social scientists have put forward several, more or less congruent, theories on the American middle class...
and were employed before they became ill, but had lost their health insurance by the time they declared bankruptcy. In the U.S., people leaving a job can continue with their former employer's health insurance plan under the COBRA
Consolidated Omnibus Budget Reconciliation Act of 1985
The Consolidated Omnibus Budget Reconciliation Act of 1985 is a law passed by the U.S. Congress on a reconciliation basis and signed by President Reagan that, among other things, mandates an insurance program giving some employees the ability to continue health insurance coverage after leaving...
at a rate that is usually double the rate the employee paid while employed. When an employer-insured person loses a job due to illness and does not have sufficient resources to continue to pay for COBRA health insurance, they also lose their coverage.
Efforts to provide universal health care
Universal health care
Universal health care is a term referring to organized health care systems built around the principle of universal coverage for all members of society, combining mechanisms for health financing and service provision.-History:...
in the 1960s and early 1990s floundered against widespread opposition by politicians who objected to government control of medicine and business groups which opposed further regulation of the healthcare and insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
industries. Despite a general consensus, codified in the federal Emergency Medical Treatment and Active Labor Act
Emergency Medical Treatment and Active Labor Act
The Emergency Medical Treatment and Active Labor Act is a U.S. Act of Congress passed in 1986 as part of the Consolidated Omnibus Budget Reconciliation Act . It requires hospitals to provide care to anyone needing emergency healthcare treatment regardless of citizenship, legal status or ability to...
, that emergency care must be provided even to the indigent, it is not widely accepted in the United States that the availability of broader health care should be considered a right and paid for by public funds.
Cost of living
Every time the government raises the minimum wage, prices must theoretically rise as well. Some states have a cost of living wage that requires a business to add an additional wage to the minimum wage. The workers make more money, then spend more money, and this gradual inflation is related to the rise in cost of living.The minimum wage is an extremely minor part of inflation or cost of living increases. In fact, the minimum wage has not kept up with inflation over the past 30 years or so. Inflation has much more to do with monetary policy and credit.
Use of credit and savings rate
The United States has the lowest savings rate of any developed nation. This low savings rate is offset by the high use of credit.Further reading
- Douglas S. Massey, Categorically Unequal: The American Stratification System, Russell Sage Foundation Publications 2007, ISBN 0871545853