Group Proposes Detailed Plan to Reduce Poverty by Half

[Judi Lynn]

Source: New York Times

Group Proposes Detailed Plan to Reduce Poverty by Half

By ERIK ECKHOLM
Published: April 25, 2007

With a large increase in the minimum wage and a handful of other measures to raise the income of low-end workers, the United States could cut the number of people living in poverty by half within a decade, a report from a liberal research group says.

The antipoverty strategy, which would cost the government $90 billion a year, was developed over the last year by a group of economists, poverty experts and leaders of labor and community groups. It is to be issued today by the Center for American Progress in Washington. It is likely to be a fount of ideas for Congress, where Democratic control has led to new interest in fighting poverty and for candidates, especially Democrats, in the presidential campaign.

According to federal data, 37 million residents lived below the poverty line in 2005, defined as an income of $20,000 a year for a family of four.

The new strategy reflects a change in the political climate since the welfare overhaul of 1996. That put strict limits on cash welfare that many experts said had reduced incentives to work. The new strategy emphasizes measures to promote work and would use tax credits and other measures to bolster the incomes of low-wage workers.



Read more: http://www.nytimes.com/2007/04/25/us/25poverty.html

[sutz12]

1. How does reducing poverty cost the gov't $90 billion per year...?

:wtf:

[Judi Lynn]

3. From the article:

Citing studies by the Urban Institute, the report says steps in three areas, costing the government $50 billion a year, would reduce poverty 26 percent, or nine million people.

First is an increase in the minimum wage to half the average hourly wage. Congress has just agreed to raise the minimum wage, to $7.25 an hour by 2009 from its current $5.15 an hour. By the report’s standard, the wage would have reached $8.40 in 2006 and be higher in future years.

Research indicates that such an increase would eliminate a relatively small number of jobs, the institute said, while lifting the incomes of more than 4.5 million poor workers and nine million people whose incomes are just above the poverty line.

Second, the report calls for expanding the earned-income tax credit and the child care credit. The earned-income tax credit for childless workers and noncustodial parents, in particular, which is now negligible, would increase along with credits for working families. That would reduce the number of poor by two million.

Third, expanding child care subsidies for families with incomes below $40,000 a year and expanding the child care tax credit would raise employment and help lift nearly three million people out of poverty, the study forecasts.
(snip/)

[Exiled in America]

2. Through tax credits and subsidies I'm assuming

[Exiled in America]

4. edit. that was the weirdest thing! *blinks*

I was reading on an entirely different thread about guns, posted a comment on the subject of guns, then found myself back in this thread that I had looked at previously and noticed the comment was there.

I'm sure it was just me overlooking something I did, but it still made me blink! :)

[Joe Chi Minh]

5. Meant to post it, but forgot. One European country raised the minimum wage by 34%.

Brilliantissimo! Apart from other wage improvements.

[rodeodance]

6. I have had a few weird things---including landing in diff forum on DU past

week or so.

[lonestarnot]

7. Damn good drugs?

:rofl: