The Best Way To Eradicate Poverty: Welfare Not Jobs

Published by Anonymous (not verified) on Thu, 20/09/2018 - 1:00am in

Tags 

Labor, poverty

The Census released its income, poverty, and health insurance data last week (ASEC, SPM). Among other things, the data allows us to see who was in poverty and therefore gives us good insights about how to eradicate poverty. In this post, I detail what I think these insights are using my own calculations of the 2017 microdata. Below is the overall poverty rate broken down by market income and disposable income. “Market income” refers to all income received from labor earnings and capital ownership. “Disposable income” refers to each person’s final income and takes into consideration taxes paid and government benefits received. For both figures, I use the poverty line of the Supplemental Poverty Metric. In 2017, the market poverty rate was 25 percent. The poverty rate when counting disposable income was 13.9 percent.