Stat of the Day: On US Poverty Spending
From Rich Lowry, at Jewish World Review:
According to poverty expert Robert Rector of the Heritage Foundation, the federal government and states already spend roughly $585 billion a year on means-tested poverty programs — a record level. If we could buy people into the middle class, we’d have done it by now.
Let’s assume Rector’s number is correct; unfortunately, Lowry didn’t provide a link (I have my doubts, especially as to what Rector might have included and excluded — If anyone has a link to the support for the $585 billion, throw it in the comments or e-mail me).
If there are 40 million people living in poverty in the US (that would be 13.3% of the population, slightly higher than the current official rate), that would mean we are spending $14,625 on EVERY man, woman, and child living in poverty. A married family of four in poverty could live very nicely on over $58,500 tax-free dollars a year, as could a single parent with two kids on almost $44,000; but of course, the money and the value of the services isn’t getting to them.
So the question has to be asked, especially of John “Two Americas” Edwards, who wants us to spend even more: “Where is the money going now?”
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UPDATE: Funmurphy’s found congressional testimony by Rector from 2000 where he said that the country was spending $434.2 billion on means-tested welfare programs at that point ($121.3 billion state and $312.9 billion federal). That makes the $585 bil, which is about 35% more, unfortunately credible.
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Selected Previous Relevant Posts:
- Dec. 2, 2006, — Tax Foundation: Tears for the ‘Bottom Quintile’ Are Almost Completely Wasted
- Mar. 27, 2006 — A Really Scary Idea — That Just Might Make Sense
- Oct. 2, 2005 — NY State Medicaid Spending: Surely This Can’t Be (But It Is)
- Sept. 29, 2005 — Income Inequality + Economic Mobility = Long-Term Prosperity
