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  • Title: Poverty in America: trends and new patterns.
    Author: O'hare WP.
    Journal: Popul Bull; 1985 Jun; 40(3):1-44. PubMed ID: 12340180.
    Abstract:
    Poverty trends in the US between 1959-83, as revealed by census data, are described, 1984 government expenditures on social programs are delineated, contrasting explanations put forth to explain the increase in poverty between 1978-83 are critically examined, and some practical suggestions for reducing poverty levels are made. Between 1959-73, the absolute number and the proportion of individuals below the poverty line decreased respectively from 39.5-23.0 million and from 22.4%-11.1%. Between 1973-78, poverty rates fluctuated somewhat. Between 1978-83, the absolute number and proportion of poor increased respectively from 24.5-35.3 million and from 11.4%-15.2%. Between 1978-83, the depth of poverty also increased. The proportion of families with incomes below US$5000 increased from 3.9%-5.7%, and the median income for poor families declined. Some experts, such as Charles Murray, attribute the increase in poverty to federal poverty programs. Murray maintains that poverty programs undermine the work ethic and encourage the creation of female headed households. Others, including Michael Harrington, attribute the increase in poverty to structural changes in the economy and to changes in the composition of the population. Harrington maintains that the decline in the number of manufacturing jobs, the lack of employment opportunities for unskilled workers, and the entry of the baby boom generation into the working age population makes it increasingly difficult for young males, and especially for black males, to find jobs offering financial security. The present analysis provided more support for the latter explanation than for the former explanation. Numerous studies indicate that there is considerable movement in and out of poverty and that most individuals are poor because they cannot find jobs. The American public has a mistaken impression about the amount of money expended by the government to provide assistance to the poor. The bulk of the government's social expenditures goes to the middle class. There are 4 major types of social benefit programs. These are 1) non-means-tested cash assistance programs, including social security retirement and disability and unemployment insurance; 2) means-tested cash assistance programs, including Aid to Families with Dependent Children (AFDC); 3) noncash, non-means-tested benefits, such as Medicare for the elderly; and 4) noncash, means-tested benefits, such as Medicaid. In fiscal year 1984, means-tested benefits amounted to US$61.0 billion. In contrast, non-means-tested benefits amounted to US$262.7 billion. Female headed households, especially among blacks increased considerably in recent years; however, the major reason for this increase is the shortage of black males with incomes sufficiently large to support a family. Recommendations for reducing poverty without seriously increasing the federal deficit are 1) to provide relevant job training so that all able-bodied individuals can become productive taxpayers; 2) to change the tax code so the poor do not have to pay taxes; 3) to standardize AFDC payments throughout the country and to tie the payments to the inflation rate; 4) to expand successful programs, e.g., Headstart, and; 5) to reinstitute programs to help welfare mothers become independent.
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