Report Shows Government Programs Reducing Poverty
by Jessica Schieder, 11/12/2013
The supplementary measure attempts to more accurately calculate poverty, taking into account the impact of various social insurance programs, geographic differences, and necessary expenses on families.
The report finds that government programs continue to fight poverty. Without Social Security, the poverty rate would swell to 24.5 percent, as highlighted by Bruce Bartlett in a recent blog for The New York Times. Said differently, one out of every four people would fall under the poverty line if not for Social Security. The Supplemental Nutrition Assistance Program (SNAP), unemployment insurance programs, and housing subsidies also prevent millions of people from falling into poverty.
The report similarly draws attention to the cost of some taxes and expenses on American families. For example, medical out-of-pocket expenses increase the poverty rate approximately three percent.
Source: New York Times