Posts tagged with: welfare

Fox News reports:

The nation’s poverty rate dropped last year, the first significant decline since President Bush took office. The Census Bureau reported Tuesday that 36.5 million Americans, or 12.3 percent — were living in poverty last year. That’s down from 12.6 percent in 2005. The median household income was $48,200, a slight increase from the previous year. But the number of people without health insurance also increased, to 47 million.

The last significant decline in the poverty rate came in 2000, during the Clinton administration. In 2005, the poverty rate dipped from 12.7 percent to 12.6 percent, but Census officials said that change was statistically insignificant.

The poverty numbers are good economic news at a time when financial markets have been rattled by a slumping housing market. However, the numbers released Tuesday represent economic conditions from a year ago.

The poverty level is the official measure used to decide eligibility for federal health, housing, nutrition and child care benefits. It differs by family size and makeup. For a family of four with two children, for example, the poverty level is $20,444. The poverty rate — the percentage of people living below poverty — helps shape the debate on the health of the nation’s economy.

Robert Rector, of the Heritage Foundation, reminds us of what it means to live as “the poor” in America:

The following are facts about persons defined as “poor” by the Census Bureau, taken from various government reports:

* Forty-six percent of all poor households actually own their own homes. The average home owned by persons classified as poor by the Census Bureau is a three-bedroom house with one-and-a-half baths, a garage, and a porch or patio.

* Seventy-six percent of poor households have air conditioning. By contrast, 30 years ago, only 36 percent of the entire U.S. population enjoyed air conditioning.

* Only 6 percent of poor households are overcrowded. More than two-thirds have more than two rooms per person.

* The average poor American has more living space than the average individual living in Paris, London, Vienna, Athens, and other cities throughout Europe. (These comparisons are to the average citizens in foreign countries, not to those classified as poor.)

* Nearly three-quarters of poor households own a car; 30 percent own two or more cars.

* Ninety-seven percent of poor households have a color television; over half own two or more color televisions.

* Seventy-eight percent have a VCR or DVD player; 62 percent have cable or satellite TV reception.

* Seventy-three percent own microwave ovens, more than half have a stereo, and a third have an automatic dishwasher.

Important items to remember:

(1) Those living “in poverty” is never a static population. People cycle in and out of poverty over time.
(2) Unemployment numbers remain steady. Both the number of unemployed persons (7.1 million) and the unemployment rate (4.6 percent) were about unchanged in July. The jobless rate has ranged
from 4.4 to 4.6 percent since September 2006. (Data from the Bureau of Labor Statistics)
(3) Raising the minimum wage will not reduce the poverty rate but increasing the number of jobs will in the short-term.
(4) The low-skilled labor market continues to experience job loss due to advances in technology (robots, “self-check out” lanes, etc.)
(5) There has been considerable job growth since 2003. On August 3, The Bureau Of Labor Statistics released new jobs figures. Since August 2003, more than 8.3 million jobs have been created, with more than 1.8 million jobs created over the twelve months ending in July. Our economy has now added jobs for 47 straight months.
(6) According to White House data:

(a) Real GDP Grew At A Strong 3.4 Percent In The Second Quarter Of 2007. The economy has now experienced nearly six years of uninterrupted growth, averaging 2.7 percent a year since 2001.

(b) Real After-Tax Per Capita Personal Income Has Risen By 11.4 Percent

(c) Real Wages Rose 1.3 Percent Over The 12 Months Ending In June. This is faster than the average rate during the 1990s, and it means an extra $782 in the past year for a family with two average wage earners.

(d) Since The First Quarter Of 2001, Productivity Growth Has Averaged 2.8 Percent Per Year. This is well above the average productivity growth in the 1990s, 1980s, and 1970s.

In the end, the current poverty rate reduction is simply a result of a combination of the factors listed above. In order to continue reductions in poverty the business sector needs more freedom to create jobs to meet the needs of our changing communities. Tax burdens and frivolous government regulation continue to stifle entrepreneurial creativity and innovation. Additionally, the moral dimensions of poverty need continued attention by the various mediating institutions like the church and other non-profits. Poverty is multi-layered and material solutions alone will not bring about long-term reductions.

Blog author: jballor
posted by on Friday, August 10, 2007

Here are some book reviews of note from recent weeks that you may find to be of interest:

I wrote a few comments explaining why John Edwards’ recent poverty tour may serve as good rhetoric but, in the end, demonstrates very poor economic thinking. His ideas essentially represent the failed “war on poverty” initiatives that came out of LBJ’s “Great Society” foolishness. It’s a 2007 remix of a few old, tired, played out ideologies. The programs didn’t work in the 70s and 80s and they won’t work if Edwards becomes president. Edwards wants to raise the minimum wage to nearly $9.50/hour. Where does Edwards expect that money to come from? In the long run, these ideas eventually hurt the poor as we witnessed before Congress overhauled welfare in 1996.

You can read my comments at the Detroit News as well an extended version of the same editorial here at the Acton Institute.

Blog author: abradley
posted by on Friday, July 27, 2007

For some reason, I had never thought about what pro-life socialist policies might look like. But today, Jim Wallis’s Sojourner’s blog covered a Los Angeles Times story about a strategy shift in the Democratic party to support a House bill “designed not only to prevent unwanted pregnancies, but also to encourage women who do conceive to carry to term.”

Passed last week in the House with strong bi-partisan support, the bill provides millions of federal dollars to:

• Counsel more young women in crisis to consider adoption, not abortion.

• Launch an ad campaign to inform needy women that they can receive healthcare and other resources if they are “preparing for birth.”

• Expand parenting education and medical services for pregnant women, in some cases by sending nurses to their homes.

• Offer day care at federal job-training centers to help new mothers become self-sufficient.

According to the L.A. Times piece, the House is also considering a separate measure that would fund maternity and day-care centers on college campuses so “pregnant students won’t feel they must have an abortion to stay in school.”

So, leaving this open for discussion — Is this bill a step in the right direction that Christians should welcome and embrace as “life-affirming”? (If we federally fund abortions now, isn’t it better to federally fund moral alternatives?) Or is it just a political tactic to win over conscientious, religious voters while steeping them in the socialist principles of universal health care on their own ground? (Abortion is certainly more emotional for such voters than the worn-out, transparent appeals for federal health control they’ve heard in the past. And if much of the newly-allocated money goes to Planned Parenthood anyway, isn’t it just a wolf in sheep’s clothing?)

Perhaps it’s not enough for Christians to be “single-issue voters” on the abortion issue. Maybe what lies beneath the pro-life rhetoric matters, too. And when considering any act of the state, our only question should not be “is it a good idea?” — we should also ask the more important question, “Is it the government’s place?”

Blog author: rnothstine
posted by on Wednesday, July 18, 2007

John Edwards formally kicked off his poverty tour in New Orleans’s Lower Ninth Ward this week and of course blamed the president for the government’s mishandling of the Hurricane Katrina disaster. Edwards also played up symbolism by visiting some of the samel cities Martin Luther King, Jr. and Robert Kennedy visited during their famed poverty tours. Edwards may not significantly differ from other Democratic front runners for the White House, although some say he is the only candidate with a truly universal health care program.

Edwards does however stand out from the field of Democratic front runners in terms of actually visiting impoverished locations, although not always to the delight of everybody in the region. In addition, there is not a lot of vote power or political contributions likely to emerge from the places he stopped on his poverty tour. He is often accused of orchestrating a well crafted political strategy for trying to draw attention to the nation’s poor, while attempting to distance himself from recent criticisms of his own affluence and lavish spending. Even in the age of overly scripted politicians he should be given the benefit of the doubt, and acknowledged for raising awareness to a critically important moral issue, although his solutions lack the right method for addressing poverty.

While the language and symbolism of his tour is recycled Great Society rhetoric, it adds a dynamic reminder of the failed attempt at combating poverty through massive federal spending and initiative. Of course, that’s not Edwards’ intention but he helps us recall these failed policies.

Lyndon Johnson in his first State of The Union Address declared “an unconditional war on poverty in America.” The same president vowed to “not rest until that war is won.” The War on Poverty in fact institutionalized poverty by trapping people in a vicious cycle of dependency. No doubt, there won’t be any talk of meaningful tax cuts, deregulation, and economic freedom in the Edwards poverty tour. If there is one legacy the Great Society left, it is that the government is not a job or wealth creator — the entrepreneur creates jobs and wealth. Jesus himself proclaims the “poor shall always be with us,” and so shall well meaning but misguided poverty tours.

Blog author: jballor
posted by on Friday, January 26, 2007

“No committee, arguably, has more power or attracts more lobbyists than the Committee on Ways and Means,” writes the NYT’s Robin Toner. “Representative Charles B. Rangel, Democrat of New York, joined the committee in 1975, and now, at the age of 76, has finally arrived at the very top.”

“[Jesus] said the rich are going straight to hell.”

Jared Bernstein, a liberal economist, said: “When the Ways and Means Committee has worked well, they’ve identified social needs and advocated for the funds to meet them. Will this committee do that? I hope so.”

What does this mean for Rangel’s chairmanship? “Chairmen of the 218-year-old committee have traditionally been at the center of the great debates, including how to support a growing elderly population and how to deal with the excesses of capitalism.”

You can expect Rangel to engage economic issues from a similar rhetorical perspective, a liberal one that seeks “to cushion workers in this rough, new, competitive environment.” But as Toner also observes that “the ideological gulf between the two parties is vast, not just on tax cuts, but on the role of government versus the private market in areas like health care.”

In recognition of Rep. Rangel’s new position, we offer this moment from the Acton Institute’s history. Rev. Robert A. Sirico, president of the Acton Institute, and Rep. Rangel share the following exchange during Rev. Sirico’s testimony before the Ways and Means Committee in 1995 on welfare reform:



For more on Rangel’s views of religion, wealth, poverty, and charity, check out the dialog from an appearance on Hardball with Chris Matthews, where Rangel asserts that Jesus said that “the rich are going straight to hell.”

Blog author: jspalink
posted by on Wednesday, October 18, 2006

Despite a recent surge in economic growth in the European Union, the lack of political will to reform unsustainable welfare systems and curb regulatory excesses does not bode well for the future. Samuel Gregg looks back to the Freiburg Ordo-Liberal School, practitioners of an economic philosophy that helped engineer the post-war revival for West Germany, as a possible path toward greater freedom and economic growth.

Read the full commentary here.

Rev. Robert A. Sirico

Rev. Robert A. Sirico

On Monday, October 2, Acton President Rev. Robert A. Sirico debated the President and Founder of Evangelicals for Social Action, Dr. Ronald J. Sider on the campus of Calvin Theological Seminary. The topic of their exchange was Wealth and Poverty in Light of the Gospel: How Can Christians Work Together if We Disagree? The event was jointly sponsored by Calvin Seminary and Western Theological Seminary.

Their spirited exhange is now available online in both video (streaming video – Real media format NOTE: the presentation begins about 6 minutes into the video) and audio format. Both the video and audio appear courtesy of Calvin Seminary.

Dr. Ronald J. Sider

Dr. Ronald J. Sider

You can also review a responses to the debate from the Kruse Kronicle, and an overview of the event from the Kerux, Calvin Theological Seminary’s student newsletter. And as always, your thoughts and reactions are welcome in the comments section below.

Update 8/5/2013: A reader informed us that the media files originally linked in this post have since gone offline. To make amends, I’ve re-posted the audio, which you can listen to via the player below:

Blog author: jspalink
posted by on Wednesday, August 23, 2006

Anthony Bradley, a research fellow for the Acton Institute, looks back on the effects of the welfare reform of 1996. Many people criticized this legislation as it was being passed and predicted that the result would be increased poverty. However, the results of the legislation have been overwhelmingly positive.

Poverty, especially amongst single mothers, has declined significantly. Employment among people formerly claiming welfare has increased dramatically. The number of welfare cases has dropped from 4.3 to 1.89 million — that’s more than 50% fewer cases — and poverty has decreased as well! These results cannot be only attributed to economic factors (although a good economy obviously helps poverty). As Mr. Bradley puts it: “When our society provides incentives encouraging work, marriage, family, and accountability—which are central to human dignity—we see people thought to be helpless rise to the occasion.”

Read Anthony’s commentary here.