Throughout American history congress has had to resolve problems that arose nation wide. Pell Grants, created in 1972, and the Affordable Care Act of 2010 are just two of the legislations created to solve some of the United States economic problems. Although these two solutions were both initiated to boost America’s economy and to support low income families, the reason for the intervention of the government and their results differ.
Affording a post high school education has always been a struggle for many families, but especially families with a low income. To increase the number of higher educated employees the government intervened by creating the Pell Grant in 1972. “The federal Pell Grant program was designed to help college students coming from low-income families afford the high cost of going to college without getting buried in debt. ” (Huffington post). However in 2010 president Barack Obama had to revise the situation to insure an improved outcome. Where the maximum Pell Grant once covered the entire cost of obtaining a two-year degree and 77 percent of the cost at a public university in 1980, it now covers only 62 percent of the cost of a two-year degree and 36 percent towards a public four-year degree. ” (Huffington Post). Since 1972 the cost of college has increased immensely and want covering the costs anymore.
This resulted in students having multiple loans to pay off once they obtained a college degree. “… students from the poorest families who receive Pell Grants are graduating college with more debt than ever before. (Huffington Post). The objective was to raise the amount given to students along with the expanding economy so America could continue the increase in the number of college graduates. This would in turn help the economy by having more qualified people with higher paying jobs. As the economy was changing the average income for a family changed as well which resulted in an increase in the EPC (expected family contributions). This in turn “… will open up eligibility for approximately 8. 4 million students, 617,000 more students than the previous year. ” (http:// www. ampusexplorer. com).
Sense the amount of money was decreasing due to the exponential growth of the economy Obama and his administration decided to add money to the grants. This would help many more students get the education they need to have a successful future. “The Obama administration recognizes the need for change, and has vowed to increase the maximum award amount each year to correlate with the rising cost of education inflation. As a result, the Obama administration promises to add tens of billions of dollars to the Pell Grant fund through the next decade. (http:// www. campusexplorer. com). As a result of these actions more students were able to continue their education and have a successful life.
The economy benefited by having qualified employees that would earn a salary and put it back into the economy. “The law will increase Pell Grant grants along with inflation in the next few years, which should raise the maximum grant to $5,975 from $5,550 by 2017, according to the White House, and it will also provide 820,000 more grants by 2020. “(thecaucus. blogs. nytimes. om). The increase in the amount awarded to students with low income families gave the opportunity for young adults to obtain a full education and better the United States without being in debt. By 2012 millions of people were uninsured mostly because they couldn’t afford it. The ACA makes affordable health care more achievable for most Americans.
“Nearly 15 percent of the U. S. population, an estimated 46 million in 2012, had no health insurance during most of the calendar year. Three-quarters of these uninsured re in families with incomes near or below the federal poverty level… the remaining uninsured have annual incomes ranging from two-and-a-half to four times the poverty level… ” (aier. org). The main objective of the Affordable Care Act was to increase the number of people with insurance and make it more affordable and obtainable for all. The ACA also doesn’t allow insurance companies to discriminate against pre-existing conditions giving more affordable health care for those who are ill or have numerous health problems. It also prevents discrimination of you gender.
The Patient Protection and Affordable Care Act (ACA) has 3 main objectives: (1) to reform the private insurance market—especially for individuals and small-group purchasers, (2) to expand Medicaid to the working poor with income up to 133% of the federal poverty level, and (3) to change the way that medical decisions are made. “(annfammed. org). The results of this act will change the way healthcare is distributed forever. The result of this act changed the healthcare system and our economy immensely. More people were able to have healthcare and afford it. It makes insurance more affordable by reducing premium and out-of-pocket costs for tens of millions of families and small business owners who had been priced out of coverage in the past. This helps over 32 million Americans afford health care who could not get it before and makes coverage more affordable for many more”(obamacarefacts. com).
The result of the implementation of this act changed the way insurance companies did things. Obamacare evolved our healthcare system to make it more affordable and sensible for all american citizens. Within the Affordable Care Act”… round 26 million people now have health insurance who didn’t as of mid-2013…. These individuals, many of whom had no affordable access to medical care three years ago, now have a means of obtaining medical care for a reasonable cost, or perhaps no cost at all. This access could be the key to a healthier society overall. ” (fool. com). Even though many more people are insured because of the Affordable Care Act and it changed our future in the healthcare system, there are a few flaws. Both the Affordable Care Act and Pell Grants made expensive necessities that low income families couldn’t afford affordable.
People were now able to obtain a four year degree and affordable healthcare. Both also resulted in a mostly positive way. Pell Grants cost the government a large sum of money, nut on the other hand the education given to students will in turn get them a better job with a higher salary and improve the consumer market. People would use their hard earned money to invest back into the economy. “The Federal Pell Grant Program provides need-based grants to low-income undergraduate and certain postbaccalaureate students to promote access to postsecondary education. ” (ed. gov).
Pell Grants are an award given to students and is not mandatory to apply. Obamacare on the other hand has mandates and fees that you have to pay if you are not insured. This is one main difference between Pell Grants and the Affordable Care Act. ” Prior to the implementation of Obamacare, people had the choice to live without insurance. This system didn’t really work for millions of Americans. especially those who wanted coverage but couldn’t afford it. Now the government forces you to participate by buying insurance or paying the penalty fees for not obeying the law. “(obamacare. net). The fees have increased by hundreds each year.
People had the option to qualify for an exemption to the fees, get healthcare coverage, or pay the fees. “The annual fee for not having insurance in 2016 is $695 per adult and $347. 50 per child (up to $2,085 for a family), or it’s 2. 5% of your household income above the tax return filing threshold for your filing status… “(obamacarefacts. com). Pell grants don’t have any mandates. Anyone can apply for one. They are awarded based off of the expected family contribution so people with low incomes will be awarded with more money yearly. There is no penalty for not applying for one like there is for Obamacare.
