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Are Our 37 Million Poor Really Poor?
Townhall.com ^ | September 11, 2007 | Bill Steigerwald

Posted on 09/11/2007 3:41:45 AM PDT by Kaslin

Robert Rector of The Heritage Foundation is a national authority on poverty and the U.S. welfare system. Specializing in welfare reform and family breakdown, Rector has done extensive research on the economic and social costs of welfare.

With presidential candidates of a certain hue decrying the suffering of the 37 million Americans who have been officially classified as poor by the U.S. Census Bureau, we thought we'd ask Rector if these poor people are really as poverty-stricken as we have been led to believe. I talked to the author of “America's Failed $5.4 Trillion War on Poverty” Thursday, Sept. 6, by telephone from his office in Washington:

Q: John Edwards and others lament that 37 million Americans struggle with incredible poverty every day. You say it is not so simple or accurate to think of them as truly poor. What do you mean?

A: Well, when John Edwards says that one in eight Americans do not have enough money for food, shelter or clothing, that’s generally what the average citizen is thinking about when they hear the word “poverty.” But if that’s what we mean by poverty, then virtually none of these 37 million people that are ostensibly poor are actually poor. In reality, the government runs multiple surveys that allow us to examine the physical living conditions of these individuals in great detail.

When you look at the people who John Edwards insists are poor, what you find is that the overwhelming majority of them have cable television, have air conditioning, have microwaves, have two color TVs; 45 percent of them own their own homes, which are typically three-bedroom homes with 1{1/2} baths in very good recondition. On average, poor people who live in either apartments or in houses are not crowded and actually have more living space than the average person living in European countries, such as France, Italy or England.

Also, a lot of people believe that poor people are malnourished. But in fact when you look at the average nutriment intake of poor children, it is virtually indistinguishable from upper-middle-class children. In fact, poor kids by the time they reach age 18 or 19 are taller and heavier than the average middle-class teenagers in the 1950s at the time of Elvis. And the boys, when they reach 18, are a full one inch taller and 10 pounds heavier than the GIs storming the beaches of Normandy. It’s pretty hard to accomplish that if you are facing chronic food shortages throughout your life.

Q: How many Americans would you define as “truly poor”?

A: If you are looking at people who do not have adequate warm, dry apartments that are in good repair, and don’t have enough food to feed their kids, you’re probably looking at one family in 100, not one family in eight.

Q: Who are these “truly poor” and where do they live?

A: Generally, they will be families that have a whole lot of behavioral issues in addition to mere economic issues -- possibly drug problems, mental problems, certainly very low work effort, probably unmarried mothers and so forth. They would be spread around the country. Very few of them are elderly. Even though the elderly appear to have low incomes, they are not likely to lack food or to have a hole in their roof or things like that.

Q: Is there any single reason why the “official poor” are poor?

A: If you look at the official poor, particularly at children who are officially in poverty, there are two main reasons for that. One is that their parents don’t work much. Typically in a year, poor families with children will have about 16 hours of adult work per week in the household. If you raised that so that you had just one adult working full time, 75 percent of those kids would immediately be raised out of poverty.

The second major reason that children are poor is a single parenthood in the absence of marriage. Close to two-thirds of all poor children live in single-parent families. What we find is that if a never-married mother married the father of her children, again, about 70 percent of them would immediately be raised out of poverty. Most of these men who are fathers without being married in fact have jobs and have a fairly good capacity to support a family.

Q: How many of those 37 million are children -- and why do they count them as poor people?

A: They are counted as part of the household -- what they judge is the whole household’s income. Part of the reason the Census Bureau is telling us that we have 37 million poor people is that it judges families to be poor if they have incomes roughly less than $20,000 a year. But it doesn’t count virtually any welfare income as income. So food stamps, public housing, Medicaid -- all of the $600 billion that we spend assisting poor people (per year) is not counted as income when they go to determine whether a family is poor.

Q: Are these 37 million officially poor people the same people year after year, decade after decade?

A: Not exactly. Some of them are just down there temporarily. Others tend to be in poor or near-poor status for a long time. That would tend to be true of single mothers, for example. ... But vis-a-vis the single mothers, it’s important to understand that 38 percent of all children are born to a mother who is not married and in half of the cases she is actually living with the father and the couple will express an interest in marriage but it never actually happens. One of the simplest and most important things we could do to reduce child poverty would be to go and communicate to those couples -- all of whom are low-income -- the importance of marriage for their own well-being and for the child’s well-being.

Q: You don't make these numbers up -- you rely on information provided by the Census Bureau. So how does this myth of the poor never seem to be debunked or straightened out in the media?

A: All of the data I provide come directly from government surveys. Those government surveys are not heavily publicized by the media, because since the beginning of the War on Poverty the politically correct thing to do is to just exaggerate the amount of poverty that exists in the United States as a way of encouraging more welfare spending.

Q: You said we're spending $600 billion a year?

A: That’s what we are spending on cash, food, housing and medical care. The biggest program in there is Medicaid, followed by something called the “earned income tax credit.” The federal government, with state governments, runs 70 different means-tested welfare programs. These are programs that provide assistance exclusively to poor and low-income Americans.

Q: How much of this money actually gets to the poor people who need it and how much is overhead?

A: Most of the money goes directly to poor people either as services or as something like a food stamp or medical care. The problem with these programs is that they reward individuals for not working and not being married.

Essentially, they set up a very negative set of incentives that tends to push people deeper into poverty rather than helping them climb out of it.

The problem with the welfare state is not that it has huge overhead costs. In fact, the overhead costs are only about 15 percent of total costs. The problem is that aid is given in such a way that it encourages dependence rather than helping people to become self-sufficient.

Q: I’ve read that the national poverty rate declined steadily until it hit about 13 percent in about 1965. It’s been stuck there since, despite trillions of dollars in welfare spending. Is this true -- and why?

A: Yes. Poverty was declining rapidly before the War on Poverty was created in the mid-1960s, and since that time the poverty rate has basically stagnated.

There are two reasons for that. One is that none of the poverty spending is counted as income, so that it can’t have an anti-poverty effect. But the second, more important reason is that all of these programs discourage work and marriage, so that they in fact are pushing people deeper into poverty at the same time that they are giving them aid.

Q: So it is true that the official poverty rate is stuck at about 12 or 13 percent?

A: It hasn’t varied terribly much since the beginning of the War on Poverty.

Q: Despite how many trillions being spent?

A: Since the beginning of the War on Poverty we have now spent over 11 trillion dollars.

Q: Where did that money go -- and who got it?

A: Basically, we have spent a lot of money but we spent money in such a way that we displaced the work effort of the poor, so that we did not get very much net increase in income. Rather than bringing people’s incomes up, what we’ve done is supplanted work with welfare. What you need to do in order to truly get improvements is to create a welfare system that requires work and encourages marriage so that the recipient is moving toward self-sufficiency while receiving aid, rather than receiving aid in lieu of his own work efforts.

Q: We’ve known for a long time about these problems with the welfare system. Is there any progress being made to fix them?

A: In 1996, we reformed one small welfare program -- Aid to Families with Dependent Children -- by requiring the recipients or part of the recipients to perform work in exchange for the benefits.

As a result of that, we got a huge decline in welfare rolls, a huge surge in employment and record drops in black child poverty. Unfortunately, the rest of the welfare system -- the remaining 69 programs -- remained unreformed. Until we reform those programs in a similar way, we will make no further progress against poverty.


TOPICS: Culture/Society; Editorial; Politics/Elections
KEYWORDS: poverty; welfare
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1 posted on 09/11/2007 3:41:47 AM PDT by Kaslin
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Bump!!!


2 posted on 09/11/2007 3:54:36 AM PDT by BlessedBeGod
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To: Kaslin
One thing not mentioned is how many of the "poor" supplement their "official" income with undeclared income (either from criminal activity or just working off the books)

I have to drive through "inner city" areas to get to visit my daughter, and I'm struck by how many nice cars I see there

3 posted on 09/11/2007 3:55:07 AM PDT by SauronOfMordor (When injustice becomes law, rebellion becomes duty)
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To: Kaslin

Excellent article. Should be required reading for any “anti-poverty” activist and anyone who votes on poverty issues.


4 posted on 09/11/2007 4:06:33 AM PDT by generally (Ask me about FReepers Folding@Home)
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To: SauronOfMordor

Not to mention that many of the “poor” are actually elderly living on a fixed income. My in-laws were “poor” and they lived on a farm. They just had little income because most of their money was sheltered.


5 posted on 09/11/2007 4:06:48 AM PDT by AppyPappy (If you aren't part of the solution, there is good money to be made prolonging the problem.)
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To: SauronOfMordor

and welfare is never calculated into it either


6 posted on 09/11/2007 4:08:11 AM PDT by GeronL (Wal-Mart Respect Enforcement Department)
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To: Kaslin

American’s poor are the world’s rich.


7 posted on 09/11/2007 4:10:27 AM PDT by elizabetty (The job of POTUS is not about ideology alone; it is about COMPETENCE to do the job WELL.)
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To: Kaslin

There are poor folks in the U.S. BUT if you’ve traveled in any third world country you would find that the poor here live like the rest of the worlds middle class.


8 posted on 09/11/2007 4:10:28 AM PDT by Joe Boucher (An enemy of Islam)
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To: Kaslin

Strange...todays poor do have something to eat, and do have color TVs.


9 posted on 09/11/2007 4:13:01 AM PDT by gilor (Pull the wool over your own eyes!)
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To: Kaslin
Once the Lib filth is already out in front of this. The preferred term for the filth is now “inequality”.

Just think of it as the little cousin of the word “fair”.

The filth of Liberalism metastasizes in new directions every day. They know instinctively that they need to continually repackage and redefine their poison in order to get people to imbibe it.

Go to Poland or Estonia and try stringing together those ridiculous Lib arguments without getting pummeled by those who had the opportunity to live in such a “peoples paradise” as envisioned by the Libs.

10 posted on 09/11/2007 4:20:21 AM PDT by Carbonado
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To: Kaslin
Reminds me of my wife's nephew in West Virginia. He's a good young man who doesn't drink or do drugs. But he's lazy and won't leave home and his parents want him to stay.

He has a degree but is working in a plant (should be laid off this week) with his dad with low pay and no benefits. But all he wants is enough money to spend on E-bay since his parents pay for everything.

He always reminds me of the fable of the grasshopper and the ants.

I've suggested he leave WV and he won't do it. I've given him the names of people I know that would have hired him locally for his degree and he won't call them. I've given him links on USAJobs for careers he qualifies for and he won't apply.

So even though he has everything he needs and wants, because he's making minimum wage, gets laid off at least once a year (whuch makes him happy), has no insurance etc I'm sure he's considered "poor." Never mind the fact that he is exactly where he wants to be in life.
11 posted on 09/11/2007 4:25:12 AM PDT by Proverbs 3-5
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To: Kaslin
Generally, they will be families that have a whole lot of behavioral issues in addition to mere economic issues -- possibly drug problems, mental problems, certainly very low work effort, probably unmarried mothers and so forth.

I've been saying on this forum for a long time that people are generally poor because they do stupid things, and make stupid decisions.

Q: You don't make these numbers up -- you rely on information provided by the Census Bureau. So how does this myth of the poor never seem to be debunked or straightened out in the media?

Because the MSM is filled with Marxist enemies of America who are economic illiterates that want to re-distribute incomes from productive citizens to the (un)deserving. That's why.

12 posted on 09/11/2007 4:29:31 AM PDT by Hardastarboard (DemocraticUnderground.com is an internet hate site.)
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To: SauronOfMordor
Some in my wife's family in West Virginia work on the side earning money that is not reported so their "benefits" aren't cut. Others don't get married for the same reason even though they have kids. Government programs in some cases basically makes liars and cheaters out of otherwise honest people.

Some government programs remind me of drug dealers at schools that hand out little bits of drugs to kids to get them hooked.
13 posted on 09/11/2007 4:29:48 AM PDT by Proverbs 3-5
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To: Kaslin
As compared to an Asian making less than a buck a day, no! As compared to Al Gore, yes!
14 posted on 09/11/2007 4:33:10 AM PDT by Phlap (REDNECK@LIBARTS.EDU)
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To: Kaslin

Mr. Rector is obviously a racist - how else could he be so against welfare (/sarcasm).

Seriously, I would wager that he gets called a racist a lot...but his word ring very true.


15 posted on 09/11/2007 4:35:04 AM PDT by TheBattman (I've got TWO QUESTIONS for you....)
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To: gilor
I have yet to see that someone has starved to death in America.
16 posted on 09/11/2007 4:40:51 AM PDT by gulfcoast6
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To: Proverbs 3-5

You should really try to help him by working on his parents, IMHO.


17 posted on 09/11/2007 4:46:49 AM PDT by Harrius Magnus (Pucker up Mo, and your dhimmi Leftist freaks, here comes your Jizya!)
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To: Harrius Magnus
You should really try to help him by working on his parents, IMHO.

I have! They don't want him to leave home and are content for him to live day to day. I've asked them all what happens when the parents are gone and they all just shrug their shoulders...
18 posted on 09/11/2007 4:53:31 AM PDT by Proverbs 3-5
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To: Kaslin

Whenever you have people who are paid to feed the poor, you will have people who will NOT be paid if there are no poor people to feed. So they wil make sure they find some. Even if that means defining poverty up to unrealistic levels.


19 posted on 09/11/2007 5:14:43 AM PDT by Ronin (Bushed out!!! Another tragic victim of BDS.)
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To: Proverbs 3-5
"West Virginia"

Not to pick on West Virginians but it seems Big Media loves to travel to West Virginia when they want to do a story on the nation's impoverished. In the past they'd visit some town in WV and interview a few locals who'd bemoan the lack of jobs. My reaction to their whining about no jobs is for them MOVE! to places where there are jobs.

20 posted on 09/11/2007 5:29:13 AM PDT by driftless2
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