The War on Poverty: Measurement, Trends, and Policy

Abstract

We present a 50‐year historical perspective of the nation's antipoverty efforts, describing the evolution of policy during four key periods since 1965. Over this half‐century, the initial heavy reliance on cash income support to poor families has eroded; increases in public support came largely in the form of in‐kind (e.g., Food Stamps) and tax‐related (e.g., the Earned Income Tax Credit) benefits. Work support and the supplementation of earnings substituted for direct support. These shifts eroded the safety net for the most disadvantaged in American society. Three poverty‐related analytical developments are also described. The rise of the Supplemental Poverty Measure (SPM)—taking account of noncash and tax‐related benefits—has corrected some of the serious weaknesses of the official poverty measure (OPM). The SPM measure indicates that the poverty rate has declined over time, rather than being essentially flat as the OPM implies. We also present snapshots of the composition of the poor population in the United States using both the OPM and the SPM, showing progress in reducing poverty overall and among specific socioeconomic subgroups since the beginning of the War on Poverty. Finally, we document the expenditure levels of numerous antipoverty programs that have accompanied the several phases of poverty policy and describe the effect of these efforts on the level of poverty. Although the effectiveness of government antipoverty transfers is debated, our findings indicate that the growth of antipoverty policies has reduced the overall level of poverty, with substantial reductions among the elderly, disabled, and blacks. However, the poverty rates for children, especially those living in single‐parent families, and families headed by a low‐skill, low‐education person, have increased. Rates of deep poverty (families living with less than one‐half of the poverty line) for the nonelderly population have not decreased, reflecting both the increasing labor market difficulties faced by the low‐skill population and the tilt of means‐tested benefits away from the poorest of the poor.

Study retention as bias reduction in a hard-to-reach population

“…Despite the challenges, the analysis of extreme poverty and other deprivation relies heavily on national surveys and administrative data (49)(50)(51). The problems of underenumeration and survey nonresponse are well-documented with these data (45,52).…”

Social Policy Perspectives on Economic Inequality in Wealthy Countries

“…Besharov and Call (), for example, show that income transfers associated with U.S. social assistance programs have generated declines in material poverty, but argue that a reduction in economic inequality will require a shift toward human capital development. Haveman et al () find that the growth of antipoverty policies, including a shift from cash transfers to tax credits, work support, and other human capital development programs, is associated with a marked decrease in poverty since the 1965 War on Poverty legislation in the United States. However, they also describe the trend toward increasing economic inequality as a “headwind” that has dampened the impacts of traditional poverty alleviation programs (Haveman et al, ).…”

“…Haveman et al () find that the growth of antipoverty policies, including a shift from cash transfers to tax credits, work support, and other human capital development programs, is associated with a marked decrease in poverty since the 1965 War on Poverty legislation in the United States. However, they also describe the trend toward increasing economic inequality as a “headwind” that has dampened the impacts of traditional poverty alleviation programs (Haveman et al, ).…”

Child Poverty in the United States: A Tale of Devastation and the Promise of Hope

“…Government policies and early childhood interventions represent society's response to the burden of child poverty. A comprehensive review of anti‐poverty policies is beyond the scope of this review (see Cancian and Danziger and Haveman et al for excellent analyses of anti‐poverty efforts over the past 60 years), but the consensus is that anti‐poverty policies successfully lift many people out of poverty, especially people with children (Danziger and Wimer ; Haveman et al ). In particular, the Supplemental Nutrition Assistance Program (SNAP), which is an income‐based monthly benefit that can be used to purchase food at authorized stores, has become one of the most effective anti‐poverty policies, particularly for households with children living in deep poverty (Bartfeld et al ).…”