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 Rundown of Everything the British Royal Family Spent the Most Money On Last Year
The British royal family and their expenditure are topics often discussed by both the public and the press. People, whether they’re a...July 30, 2019
Lady Gaga Gives Rihanna & Kim K a Run For Their Money as She Launches Her Very Own Beauty Brand
In the past few years, plenty of celebrity-owned makeup brands were launched. Some of the first ones to do so are...July 30, 2019
Is Meghan Markle Finally Crumbling Under the Pressures of Royal Life? Here’s the Real Score On the Matter
Ever since her engagement to Prince Harry, Meghan Markle, now the Duchess of Sussex, has faced criticism after criticism from the...July 29, 2019
Here’s Everything You Need To Know About Serena Williams’ Internet Entrepreneur Husband Alexis Ohanian
Fans of the tennis superstar have surely seen her husband cheering from the sidelines during tennis matches. And sometimes, he would...July 29, 2019
Rihanna Is Now America’s Richest Female Musician–Here’s Why She Has No Plans to Stop Working Despite Having Millions
While Rihanna seems to have taken a break from making music, her last album being released last 2016, the Barbadian born...July 16, 2019
This is How Former Victoria’s Secret Angel Heidi Klum Ended Up With A $2 Million Insurance For Her Legs
It’s no secret that celebrities and models make their money using their good looks. So, it seems only logical that they...July 14, 2019
Here are Some Totally Steal-Worthy Career Tips British Billionaire Richard Branson Has For Elon Musk
Elon Musk is one of the most divisive figures in the world of business and technology. On the one hand, the...July 13, 2019
Fashion Victory? The Real Truth Behind Kim Kardashian’s $2.7 Million Lawsuit Win
The Kardashians’ sphere of influence has always included fashion and style. While not everyone appreciates the reality stars’ particular styles, the...July 13, 2019
This is the Real Reason Why Billionaire Kylie Jenner Started Her Cosmetics Company–and It’s Not Because of Money
This year, 21-year-old Kylie Jenner was hailed by Forbes as youngest self-made billionaire ever. And the ‘Keeping Up With the Kardashians‘...July 13, 2019