The U.S. Census Bureau recently reported that poverty dropped notably in 2021. Amid a pandemic and widespread economic pain, this is a significant accomplishment.
There are three lessons here — about government programs, about how we measure poverty, and about how far we have left to go.
First, these numbers show that government programs work. After Social Security, refundable tax credits like the expanded Child Tax Credit (CTC) and stimulus payments were the biggest contributors to reducing poverty.
Without them, over 20 million more people would have been poor last year. The expanded CTC alone lifted millions of children above the poverty line and reduced racial inequities among poor children.
These programs worked because they departed significantly from how anti-poverty programs have worked for the past 30 years. They provided direct cash transfers to recipients, without any work requirements or bureaucratic indignities.
Welfare rights organizers have been pushing for these changes for decades. This year, they were proven right.
But unfortunately, official federal poverty figures still conceal the true number of people who are struggling — and underestimate the scale of our responsibility to help them.
At just $31,000 for a family of four, the federal government’s Supplemental Poverty Measure, or SPM, is far too low. That’s less than half of the typical cost of living for a family this size in rural Mississippi, or just one-third for Chicago. And the official poverty measure, or OPM, is even lower.
I’m the policy director of the Poor People’s Campaign, which defines poverty to include everyone living up to 200 percent of the SPM.
Using this measure, which is still less than median income, we counted 140 million people — or 43 percent of the country — who were poor or one emergency away from being poor before the pandemic. In 2021, this rate went down to about 34 percent, or 112 million people.
This is a significant decrease. But it means over a third of our nation has little to celebrate.
In fact, the population living between 100 percent and 200 percent of the SPM threshold stayed basically the same between 2020 and 2021: nearly 90 million people, just one emergency away from poverty. If we only looked at the poverty rate, we would have missed them entirely.
That means we can and must do more. The expanded CTC expired in December 2021, and there has been no further discussion of reviving stimulus payments — even with the federal minimum wage at its lowest value in 66 years and the cost of living continuing to rise.
This is not to minimize the gains we’ve made. They just remind us that poverty is a policy choice — and fortunately, we can make different choices.
In 2020, there were over 80 million eligible poor and low-income voters. Fifty million of them voted in the presidential contest, accounting for a third of the electorate overall and even higher percentages in key states in the Midwest and South.
These voters share a common interest in securing health care, living wages, decent housing, and safe schools for their kids. If they could be organized to take action together — across race, religion, and other lines of division — we could advance the moral policies we need to fully address poverty.
“What’s hurting me in Kentucky is hurting you in Alabama, in West Virginia, and across the nation,” said Tayna Fogle, a leader in the Kentucky Poor People’s Campaign, earlier this year.
“Can you imagine all the poor and the low-income people coming to the ballot box?” she asked. “What if we did everything we could to make sure that our vote counted? We could overturn this madness that’s going on.”
If poor people vote in the midterms like they did in 2020, we could make another leap towards ending the madness of widespread poverty in the midst of plenty.
Shailly Gupta Barnes is the Policy Director for the Poor People’s Campaign: A National Call for Moral Revival and the Kairos Center.
Jimbo99 says
Not with record Biden inflation. Keep on declaring poverty better. All these poverty measures ensure is that one is a government recipient of the programs. We have a POTUS that seems to lie about a recession even though the definition of a recession has been met. At some point the recession data replaces the prosperity data and that’s haw the Federal Government lies about a recession being over even. The definition of a recession is:
“In 1974, economist Julius Shiskin came up with a few rules of thumb to define a recession: The most popular was two consecutive quarters of declining GDP. A healthy economy expands over time, so two quarters in a row of contracting output suggests there are serious underlying problems, according to Shiskin. This definition of a recession became a common standard over the years.”
https://countryeconomy.com/gdp/usa
https://www.forbes.com/advisor/investing/what-is-a-recession/
Biden is in denial, inflation is keeping GDP higher as a false indication of financial health. The GDP has dropped and the only way Biden can keep GDP from becoming a harder recession is to overcharge & gouge the nation into deeper poverty with that inflation. If items cost more, it’s a simple P x Q=Revenue equation for GDP. So keep lying to everyone & tell them they’re better off for nearly 2 years of Biden. Biden & Democrats don’t acknowledge the recent decline in GDP. Trust me, gasoline was $ 5/gallon they only had to sell 40 percent as much fuel to have the same Revenue from that industry sector for GDP when gasoline was $2/gallon.
“Delaware Lies” is all we’re getting from Biden. Biden is the Delaware Liar. If this happened under Trump, he’d not only be a liar, he wouldn’t care about Americans & he’d most assuredly be racist & homophobic.
Giving people freebies that keeps them in poverty is a lie too. If you don’t earn enough to pay for your healthcare, a child tax credit & Obama/Bidencare subsidies just means you’re too poor to pay for your own healthcare. Same goes with SNAP food programs & subsidized section 8 housing. The government goes into debt for those items the individual would. Reality is you are still poor & the government can end those programs on a whim. Love your Biden President. The man is a liar, 50 years of it. I’m sure he’ll fi9nd a way to change the definition & spin so he isn’t a liar. Biden has never told the truth.
Timothy Patrick Welch says
Helping those in need is good…
While an improvement considering cost to tax payers and benefits received.
Such programs work best when administered locally.
But a temporary relief does nothing to solve the root of the problem.
Mental illness, drug addiction, single parent families, laziness, incompetence, or dire medical issues.
Bottom line: recipients are still poor, and have been conditioned to wait for a government handout.
The Geode says
How could “stimulus” reduce poverty when the money is spent frivolously and the person receiving the welfare is in a WORSE position than when they started? If you want to “reduce poverty”, give out JOBS and not welfare checks that the working class has to pay for…
The ORIGINAL land of no turn signals says
Funded with tax payer money we pay more tax’s and they don’t pay at all makes the hard working stiff’s poorer.