Figure 1.--Apalachia was a pocket of poverty in America. This photograph was taken in Leatherwood, Perry County, Kentucky, in 1964. It shows the Cornett family on the porch of their mountain cabinet. The parents Willie and Vivian Cornett had twelve children. Here we have a question of what is poverty. The children look well fed and they have adequate if shabby shelter. We suspect that they also had a car, refigerator, and television set. Yet most Americans would classify the family as living in poverty. Most Ameericans would also judge that this couple with modest means were not acting responsibally in having all those kids.

America often describes itself as the richest country in the world. That is the case when considering the absolute GNP. It is not the case when considering percapita GNP. There are some European countries which have higher percapita GNP levels. The United States is, however, near the top of the list. Measuring poverty in the United states. is a difficult undertaking. Using Government-set poverty levels, there are about 35-45 million poor people in America. The 2008-09 recession has increased the poverty rate. It is to early to tell if some of this increase is structural or if poverty rates will decline significantkly as unemployment levels fall. That wpuld mean that with a population of about 310 million, the poverty rate in America something like 10-15 percent of the population. Statitics suggest that the American poverty rate is higher than that of other comparable developed countries. These statistics have to be treated with some care as they are often based on exchange rate calculations. This often does not address variations in actual purchasing power and thus can be manipulated by authors with ideological agendas. One of the most disturbing aspects of povery is as many as 20 percent of American kids live below the poverty line. The question of course arises as to what causes poverty. And what is the most effective policies to reduce poverty. The causes of poverty are fairly easy to ascertain, although somewhat controversial. Conservatives tend to believe that poverty is a question of personal resonsibility. Liberals tend to be believe that poverty is the result of societal problems and institutional barriers. The proper policies to address the problem are even more controversial. Generally speaking, conservatives want government policies to create growth and job creation. Liberals want government programs to expand welfare and redistributive entitlement payments. Interestingly in the 2000s decade, free market capitalism have lifted more people out of poverty in developing countries (Brazil, China, India, Indonesia, and other countries), than any other decade in history, many Americans have become deeply suspious of capitalism and increasingly interested in big-government socialist sollutions.

Extent

America often describes itself as the richest country in the world. That is the case when considering the absolute GNP. It is not the case when considering percapita GNP. There are some European countries which have higher percapita GNP levels. The United States is, however, near the top of the list. Measuring poverty in the United states. is a difficult undertaking. Using Government-set poverty levels, there are about 35-45 million poor people in America. The 2008-09 recession has increased the poverty rate. It is to early to tell if some of this increase is structural or if poverty rates will decline significantkly as unemployment levels fall. That wpuld mean that with a population of about 310 million, the poverty rate in America something like 10-15 percent of the population. Statitics suggest that the American poverty rate is higher than that of other comparable developed countries. These statistics have to be treated with some care as they are often based on exchange rate calculations. This often does not address variations in actual purchasing power and thus can be manipulated by authors with ideological agendas.

Children

One of the most disturbing aspects of povery is as many as 20 percent of American kids live below the poverty line. This is higher than the overall poverty level for three reasons. First the birth rate of lower-income groups is higher than upper-income groups. Second, the birth rate of ethnic grouos with low incomes (blacks and Hispanics) is higher than those wuth huigher incomes (whites abd Asians). Third, the high number of divorses and children born out of wedlock. A very substabtial number of poor children come from single-parent households. Even those who see poverty as primarily the lack of personal responsibility can not be left unaffected about the impact of poverty on children. The issue of how to address this proble is a thorny one. It is difficult to develop programs that assist the children without rewarding the parents for irresponsible behavior--having more children than they can support.

Causes

The question of course arises as to what causes poverty. And what is the most effective policies to reduce poverty. The causes of poverty are fairly easy to ascertain, although somewhat controversial. Conservatives tend to believe that poverty is a question of personal resonsibility. Liberals tend to be believe that poverty is the result of societal problems and institutional barriers. The New Deal and the G.I. Bill following World War II helped to bring many working-class Americans (often Catholic immigrant groups) into the economic mainstream. The Civil Rights Movement and the passage of the Civil Rights Bills (1965-65), there were significant institutional barriers based on race. Now a half a century after the land-mark Civil Rights legislation while black middle-class has developed, large numbers of blacks continue to be part of an ecomic under-class. One has to ask why that is and how long this will continue. Hispanics with the exceotion of the Cubans also show distressing rates of poverty. Poverty is mot restricted to minority groups, but is especially pronounced in these two groups. There are also high levels of poverty among Native Americans. Interestingly, Native Americansre also the ethnic group that has received the highest level of Government assistance.

Programs

The proper policies to address the problem are even more controversial. Generally speaking, conservatives want government policies to create growth and job creation. One conservative tells us, "The best welfare program in the world is a job." Liberals tend to want want government programs to expand welfare and redistributive entitlement payments. Interestingly in the 2000s decade, free market capitalism have lifted more people out of poverty in developing countries (Brazil, China, India, Indonesia, and other countries), than any other decade in history, many Americans have become deeply suspious of capitalism and increasingly interested in big-government socialist sollutions.

Created: 5:23 AM 3/29/2011
Last updated: 7:04 AM 4/11/2011