Evidence Shows that Anti-Poverty Programs like Social Security Actually Work
Through the years, no US government initiative has been criticized as much as anti-poverty programs. Many are quick to dismiss such initiatives as playing no role in society since most of the recipients are probably undeserving individuals.
The myth was however quickly dispelled once a newspaper highlighted the nation’s current state in terms of anti-poverty efforts. The research showed that a lot of progress was made which enabled the initiatives to serve their goals. Of all the initiatives, none comes close to Social Security in terms of performance.
In their analysis, the authors, Derek Wu and Bruce D. Meyers of the University of Chicago made utility of administrative statistics drawn from about six major programs that facilitated them to demonstrate that a good number of the projects actually led to reduced levels of poverty.
Their research, conducted between 2008 and 2013, during the Great Recession period, was able to determine the programs responsible for the reduction of deep poverty were the Social Security initiative, Temporary Assistance for Needy Families (TANF), popularly also known as “welfare”, Supplemental Security Income, food stamps or SNAP, and housing assistance. The sixth initiative is the Earned Income Tax Credit which greatly benefits those families that earn about 150% of the poverty line set at about $25,100 in yearly income when taking into account an average family of four.
Weber and Wu made conclusions that estimates by the Census Bureau surveys actually underreported the benefits brought about by such programs. This was because the body used conventional means of measurement. Because of this, the two authors shared that they believe that the impact of food stamps and welfare initiatives have been underestimated greatly in the range of a third to one-half. On the other hand, the impact of Social Security has been underestimated by as much as 44%.
Going forward, a change in method of operation is expected especially when it comes to budget cuts and reviews. Normally, most of the programs are constantly attacked by budget –cutters and conservatives looking to effect modifications to the expenditure budget. Most argue their case that the initiatives have not had a noticeable dent in society in terms of lowering poverty levels. Despite the fact that such initiatives have existed for the better part of 50 years.
Using such thinking, many Republicans have tried to hand anti-poverty initiatives over to private and philanthropic organizations, blocking certain states from accessing the funds, initialize proposals backing the trimming of the program’s benefits.
Thanks to their research, Meyer and Wu document that Social Security alone has led to the reduction of poverty among the elderly by about 75%. The other initiatives seem to serve non-elderly households much more effectively, at lower rates.
Previously in 2012, Meyer’s research with one James X. Sullivan of Notre Dame was able to produce results that led to their conclusion that the official poverty rate accounting did not take into account tax credits received by needing households such as the EITC. In addition, such estimates also forgot to take into account the impact of housing benefits, food stamps, and other in-kind transfers.
More in Insurance
A Closer Look at David and Victoria Beckham’s Surprisingly Massive Fortune
David and Victoria Beckham prove they are indeed #couplegoals not just because of their undeniably good looks and family but also...March 22, 2019
The Shocking Reason Why Former Spice Girl Mel B Went Broke
Mel B, also known as Melanie Brown, achieved success early on in her career being a former member of the iconic...March 21, 2019
Here’s What Lindsay Lohan Did to Successfully Resurrect Her Career
The year was 2004 and young actress-slash-singer Lindsay Lohan was on top of the world. With successful teen movies and a...March 20, 2019
A Breakdown of the Things Johnny Depp’s Multi-million Monthly Budget Goes to
The past few years haven’t been kind to former Hollywood leading man Johnny Depp. His divorce to actress Amber Heard and...March 19, 2019
Here’s How to Manage Your Money Like Comedian Kathy Griffin. Thank Us Later
Kathy Griffin’s career may have been marked by plenty of controversies, but it hasn’t stopped the self-identified “D-list” celebrity from achieving...March 18, 2019
TAYLOR SWIFT IS NOT EVEN 30 YET, BUT HER REAL ESTATE’S WORTH WILL BLOW YOUR MIND!
While most people are focussed in her music career and dating life, Taylor Swift’s has managed to build an impressive collection...March 18, 2019
You Won’t Believe How Much Jessica Simpson’s Fashion Brand Has Grown so Far
Once upon a time, Jessica Simpson was just a successful country singer turned reality television star who wasn’t sure if the...March 18, 2019
Move Over Mark Zuckerberg and Bill Gates, Jeff Bezos Just Clinched the Most ‘Generous’ Billionaire Title of 2018
While everyone else is thinking of ways on how to tax the rich more, some billionaires are actually actively giving away...March 17, 2019
Volvo Announces New All-Electric Car Set to Rival the Tesla Model 3
For the longest time, Tesla has been dominating the market for electric vehicles (EVs). It reached a new milestone with the...March 17, 2019