‘The War on Poverty became the welfare state.’

by Grace

Robert Samuelson writes that the War on Poverty has been a “success at strengthening the social safety net” but a “failure as an engine of self-improvement”.

The War on Poverty is often branded a failure because the share of Americans below the official poverty line has barely budged. In 1982, at the end of a harsh recession, it was 15 percent. In 2010, after the Great Recession, it was 15 percent.

The trouble is that the official poverty rate is a lousy indicator of people’s material well-being. It misses all that the poor get — their total consumption. It counts cash transfers from government but not non-cash transfers (food stamps, school lunches) and tax refunds under the EITC. Some income is under-reported; also, the official poverty line overstates price increases and, therefore, understates purchasing power.

Based on material well-being, the poverty rate is actually only about 5%.

Eliminating these defects, economists Bruce Meyer of the University of Chicago and James Sullivan of the University of Notre Dame built a consumption-based index that estimates the 2010 poverty rate at about 5 percent.

People at the bottom aren’t well-off, but they’re better off than they once were. Among the official poor, half have computers, 43 percent have central air conditioning and 36 percent have dishwashers, report Meyer and Sullivan. These advances are especially impressive because the massive immigration of unskilled Hispanic workers inflated the ranks of the poor. From 1990 to 2007, all the increase in official poverty was among Hispanics.

But LBJ’s vision of “a hand up, not a handout” failed miserably.

… America remains a tiered society with millions at the bottom still living more chaotic and vulnerable lives. Government’s capacity to boost them into the mainstream was oversold. Although Head Start produces some gains for 3- and 4-year-olds, improvements dissipate quickly; one study found most disappeared by third grade. Schools are continually “reformed,” because they don’t produce better results.

The War on Poverty became the welfare state.

Marriage trends point to a gloomy outlook.

Worse, the breakdown of marriage and spread of single-parent households suggest that poverty may grow.

From 1963 to 2012, the share of families with children under 18 headed by a single parent tripled to 32 percent. It’s 26 percent among whites, 34 percent among Hispanics and 59 percent among African-Americans. Just why is murky. Low-income men may flunk as attractive marriage mates. Or, “women can live independently more easily rather than put up with less satisfactory marriages,” as Brookings’ Isabel Sawhill says. Regardless of the causes and despite many exceptions, children in single-parent households face a harder future. They’re more likely to drop out of school, get pregnant before age 20 or be unemployed.

Poverty becomes self-perpetuating.

Handing out money is the easy part.

The War on Poverty’s success at strengthening the social safety net — a boon in the Great Recession — should not obscure its failure as an engine of self-improvement. Government is fairly good at handing out money; it’s less good at changing behavior. The two roles intersect. If the safety net is too generous, it will weaken work incentives. If it’s too stingy, it will condone suffering. This tale of two wars has left the fight against poverty in a costly and unsatisfying stalemate.

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2 Comments to “‘The War on Poverty became the welfare state.’”

  1. I’m WCE from the Totebag. I wanted you to see this link on cheating among recent Asian immigrants. I think I saw some of this in graduate school. http://educationrealist.wordpress.com/2013/10/08/asian-immigrants-and-what-no-one-mentions-aloud/

    Like

  2. Thank you, WCE! Educationrealist really tells it like it is, which is why I enjoy reading his blog. OTOH, I tend to wimp out, or to put it kindly, use a more subtle approach.

    I have heard stories from a student I know who has observed similar shenanigans at his elite university. A prep school teacher who taught Asian students told me she had to fight this problem all the time. I believe many teachers feel powerless to do much about it, and I can see how that would be the case.

    At one point I started to look at the Corruption Perceptions Index countries and how a correlation between school cheating and government corruption.

    http://www.transparency.org/cpi2013/results

    Mexico is relatively high on that corruption index, but I don’t remember hearing much about a cheating problem with Mexican students. I do have personal experience with the high corruption levels of that country. Back in my stupid younger days, I had the misfortune to have an auto accident while driving in Mexico. Mordida deluxe!

    Like

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