Tag Archives: Poor

Commentary

What is the conservative plan for taking care of the poor?

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Here’s is the Heritage Foundation explaining what conservatives would do to solve the problem of poverty.

Excerpt:

Since 1964, the U.S. has spent $15.9 trillion on means-tested welfare programs. After adjusting for inflation, welfare spending is 13 times higher today than it was in 1965. Welfare spending has grown more rapidly than Social Security, Medicare, education, and defense. And what do we have to show for these efforts? According to the Census Bureau, a record high 3.7 million Americans fell into poverty in 2009. The out-of-wedlock birthrate is now 40% and the African American out-of-wedlock birthrate is 72%. When the War on Poverty began the out-of-wedlock birthrate was just 7%.

The collapse of marriage is the root cause of child poverty in the U.S. today. It is far past time to reboot our poverty programs to promote work and encourage marriage in order to control costs and promote greater self-reliance. Among Rector’s recommendations:

  • Slowing the growth of the welfare state: Congress needs to establish reasonable fiscal constraints within the welfare system. Once the current recession ends, aggregate welfare spending should be rolled back to pre-recession levels. After this rollback has been completed, the growth of welfare spending should be capped at the rate of inflation.
  • Promoting personal responsibility and work: Able-bodied welfare recipients should be required to work or to prepare for work as a condition of receiving aid. Food stamps and housing assistance, two of the largest programs for the needy, should be aligned with the TANF program to require able-bodied adults to work or to prepare for work for a minimum of 30 hours per week.
  • Ending the welfare marriage penalty and encouraging marriage in low-income communities: Current means-tested welfare programs penalize low-income recipients who get married; these anti-marriage penalties should be reduced or eliminated.

During the administration of President Bill Clinton, conservatives successfully reformed one welfare program in the 1990s: replacing the old Aid to Families with Dependent Children (AFDC) with the new Temporary Assistance to Needy Families (TANF). But President Barack Obama’s failed economic stimulus gutted those reforms. And his budget proposal would spend $10.3 trillion on means-tested welfare over the next decade. Before the current rise in poverty, that was enough to give $250,000 to each person currently living in poverty in the U.S., or $1 million for a poor family of four. Our nation can’t afford another 10 years of failed War on Poverty thinking.

You can read more about this issue in this Townhall.com column by Walter Williams, which explains everything you need to do to avoid being poor, and to avoid making your kids poor.

Excerpt:

Avoiding long-term poverty is not rocket science. First, graduate from high school. Second, get married before you have children, and stay married. Third, work at any kind of job, even one that starts out paying the minimum wage. And, finally, avoid engaging in criminal behavior. If you graduate from high school today with a B or C average, in most places in our country there’s a low-cost or financially assisted post-high-school education program available to increase your skills.

Most jobs start with wages higher than the minimum wage, which is currently $5.15. A man and his wife, even earning the minimum wage, would earn $21,000 annually. According to the Bureau of Census, in 2003, the poverty threshold for one person was $9,393, for a two-person household it was $12,015, and for a family of four it was $18,810. Taking a minimum-wage job is no great shakes, but it produces an income higher than the Bureau of Census’ poverty threshold. Plus, having a job in the first place increases one’s prospects for a better job.

The Children’s Defense Fund and civil rights organizations frequently whine about the number of black children living in poverty. In 1999, the Bureau of the Census reported that 33.1 percent of black children lived in poverty compared with 13.5 percent of white children. It turns out that race per se has little to do with the difference. Instead, it’s welfare and single parenthood. When black children are compared to white children living in identical circumstances, mainly in a two-parent household, both children will have the same probability of being poor.

Here’s more Walter Williams: (2 minutes)

And some Thomas Sowell: (4.5 minutes)

Walter Williams and Thomas Sowell are my two favorite economists.

Commentary

What is the “root cause” of poverty and inequalities of wealth?

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The Heritage Foundation explains – it’s not what you think.

Excerpt:

New data released today by the U.S. Census Bureau show the largest increase in poverty in U.S. recorded history. Under President Obama’s watch, an additional 3.7 million Americans fell into poverty in 2009.

Buried in the Census report are startling figures revealing the principal cause of child poverty: the collapse of marriage. Single mother families are almost five times more likely to be poor than are married couples with children; overall, nearly 70 percent of poor families with children are headed by single parents.

The big secret in the Census report is that marriage is America’s number-one weapon against child poverty. But marriage has been rapidly declining in our society as the number of women who have children without being married has skyrocketed.

Historically, unwed childbearing was rare. In 1964, when the federal government launched its War on Poverty, 6.8 percent of births were to single mothers. Today, the unwed birth rate has soared to 40 percent: four of every 10 births are to a single mother. For Hispanics and African Americans, it’s significantly higher.

This trend is extremely detrimental for society. When compared to children raised by married parents, children raised by single parents are more likely to have emotional and behavioral problems; be physically abused; smoke, drink, and use drugs; be aggressive; engage in violent delinquent and criminal behavior; have poor school performance; and drop out of school.

Contrary to conventional wisdom, nearly all unwed fathers are employed, and most earn enough to lift mother and child from poverty. Tragically, however, few unwed parents marry.

Many commentators will say teen pregnancy accounts for most single motherhood, but this is false. Less than 8 percent of new single moms are under 18. In fact, most unwed births are to young adult women in their 20s. The majority of unwed moms don’t have much education; most end up on welfare.

If Americans are serious about reducing poverty and getting control of federal welfare spending, we must strengthen marriage. We can do this in several ways, beginning with reducing anti-marriage penalties currently in welfare programs and providing factual information to low-income communities about the benefits of marriage.

Do you know who is pretty good on this issue? Maggie Gallagher, that’s who. She knows everything about why people should get married.

Excerpt:

5. YOU WILL EARN MORE MONEY. Men today tend to think of marriage as a consumption item—a financial burden. But a broad and deep body of scientific literature suggests that for men especially, marriage is a productive institution—as important as education in boosting a man’s earnings. In fact, getting a wife may increase an American male’s salary by about as much as a college education. Married men make, by some estimates, as much as 40 percent more money than comparable single guys, even after controlling for education and job history. The longer a man stays married, the higher the marriage premium he receives. Wives’ earnings also benefit from marriage, but they decline when motherhood enters the picture. Childless white wives get a marriage wage premium of 4 percent, and black wives earn 10 percent more than comparable single women.

6. DID I MENTION YOU’LL GET MUCH RICHER? Married people not only make more money, they manage money better and build more wealth together than either would alone. At identical income levels, for example, married people are less likely to report “economic hardship” or trouble paying basic bills. The longer you stay married, the more assets you build; by contrast, length of cohabitation has no relationship to wealth accumulation. On the verge of retirement, the average married couple has accumulated assets worth about $410,000, compared with $167,000 for the never-married and $154,000 for the divorced. Couples who stayed married in one study saw their assets increase twice as fast as those who had remained divorced over a five-year period.

Yet another reason for fiscal conservatives to take social conservatives seriously. Marriage makes people more independent, and that means smaller government, lower taxes, and more liberty. What we need to do is block feminists from undermining marriage to serve their gender-neutral ideology, and stop socialists from undermining marriage with the welfare programs which incentivize single motherhood.

News

Does government dependency make people happier and more moral?

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Here’s a funny story in the UK Daily Mail. (H/T The Blog Prof)

Excerpt:

A jobless couple rake in £95,000 in state benefits a year – and even have breakfast delivered to the door each morning, courtesy of the taxpayer.

The money – five times the starting salary of a teacher – goes to unemployed Pete and Sam Smith and their ten children, who live in a rentfree four-bedroom house.

[…]The Smiths were moved last month by the local authority from a house in Bath, which the landlord accused them of wrecking, to the large house in the Bristol suburb of Kingswood.

But Mrs Smith, 36, complained that the house was too small, the breakfast portions too stingy and said she could afford to buy her brood only one Nintendo Wii games console between them.

She claims she is also forced to pay £100 a week to keep her five cats in a cattery.

‘It’s very cramped here,’ she told the News of the World. ‘We’ve been told we might not be given a new house for another nine months, which is ridiculous.

‘The breakfast supplied by the council isn’t like proper hot food. It’s usually eggs, beans, tinned tomatoes and cereal, which isn’t really enough for us all and we have to heat it up ourselves.’

[…]Mrs Smith receives up to £140-a-week child benefits for her children aged from four months to 14 years.

The family also get disability living allowance, carer’s allowance, tax credits and income support.

The total with child benefits is £44,954. They then receive a £950-aweek bed-and-breakfast deal where the council pays for breakfasts delivered to their home, which comes to £49,400 – a total of £94,354 a year.

You may want to read this Arthur Brooks column that argues that it isn’t money that makes people happy – it’s the freedom to work, save and spend how you please. Arthur Brooks is the same guy who previously wrote a book showing that those who oppose redistribution of wealth give far more in charity than than those who support it. You can read about that in this article.