08.20.2012 Policy Points

The Politics And Policy Of Poverty

A cover story in this week’s issue of The New York Times Magazine discusses the anti-poverty policies pursued by the Obama administration.

And so in 2009 and 2010, the Obama administration put a tremendous amount of money, very quickly, into the hands of low-income Americans. As part of the Recovery Act, the administration extended the eligibility rules for existing programs like food stamps and unemployment insurance, and the combination of the collapsing economy and the more generous rules meant the programs grew quickly….

And while it is true that the Census Bureau’s official poverty figures have grown steadily worse under Obama, rising to 15.1 percent of Americans under the poverty line in 2010 from 13.2 percent in 2008, those dismal numbers come with a significant caveat. When government statisticians calculate the poverty rate, they include only cash income. And over the last two decades, and especially during the Obama administration, the way the federal government gives aid to poor people has shifted away from cash transfers toward noncash transfers — food stamps, Medicaid subsidies, housing vouchers — none of which are included in a family’s income for the purposes of poverty statistics. If you do count food stamps and other noncash aid, the poverty rate has, according to some calculations, not gone up much at all during the Obama administration, during the worst economic crisis in 70 years. That is a remarkable accomplishment….

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