T
Theo520
Guest
The earned income tax credit, Supplemental Nutrition Assistance Program, Section 8 vouchers, Medicaid — all these are things sent off to poor people. Yet we don’t include them in our calculations of how many poor people there are.
Effectively, the official poverty measure is a reading of how many people would be poor if there wasn’t any government help. That’s a useful number, certainly. But what we want to know is how many are still poor after what government does. Only with that can we decide whether we need do more, or perhaps even that we should cut back. That’s the one number we’ve not had as an official measurement, until this report.
When we do add in everything we already do, then we get to:
It’s difficult to think of anything at all which government gets right to a margin as small as 2 percent. I think it fair therefore to declare victory. We had that War on Poverty, and we won.When we use a new, Full-Income Poverty Measure (FPM) that is anchored to 1963 standards — and which thus includes the full impact of government taxes and transfers (both cash and in-kind, including the market value of health insurance); which better accounts for inflation, by using the Personal Consumption Expenditures and which uses the household instead of the family as the sharing unit — we find that the poverty rate declined from 19.5 percent in 1963 to 2.3 percent in 2017.
It’s worth noting that this is even more so with child poverty, the one thing the American welfare system really is good at is concentrating aid onto families with children.
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