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| Source: https://www.census.gov/newsroom/press-releases/2021/income-poverty-health-insurance-coverage.html |
Last year’s pandemic impacted the entire country’s economy, leading to widespread job losses as well as lower participation in the general economy. Although it could have led to the largest poverty rates America has ever seen, because of government aid provided all throughout last year, the United States Census Bureau reported that the supplemental poverty measure actually decreased to the lowest figure since 1967.
While the supplemental poverty measure was 9.1 percent of the U.S population, the official poverty measure actually increased to about 11.4 percent in 2020. The difference between the two measures according to the United States Census Bureau is that “the official poverty measure is based on cash resources[, while] the supplemental poverty measure uses cash resources and also includes non-cash benefits and subtracts necessary expenses (such as taxes and medical expenses)” (USCB). Essentially, by the definition of poverty in America, the poverty rate bumped to 37.2 million (3.2 million greater than 2019). However, this number does not show the impact of the government programs, which include housing and food assistance, tax credits, and the checks sent directly to households that were considered as tax rebates.
The extra aid included more unemployment benefits and food aid from Congress, in addition to billions of dollars that were provided to assist small businesses. One must also consider the direct checks that went to many American families. Approximately 5.5 million people were able to avoid falling into poverty due to the unemployment benefits, and about 11.7 million people were lifted out of poverty due to the direct checks provided by the government.
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| Source: https://goodtimes.sc/santa-cruz-news/u-s-poverty-fell-last-year-as-government-aid-made-up-for-lost-jobs/ |
In 2020, it was popular among conservatives to disagree with the increase of financial aid. Even after the publication of these statistics, they continue to promote the narrative that federal spending should decrease as the economy heals, and that higher federal spending would only increase the federal debt and avert people from working. Mitch McConnell states that the governmental aid was a “reckless taxing and spending spree” (NYT). Liberals, on the other hand, are more excited to see improvements in poverty with the help of governmental aid. This heavily reminds me of the opinions expressed about the Aid Families with Dependent Children (AFDC) program in class today. We learned that the program was criticized for granting benefits to people who were not “deserving” of the aid. Additionally, many thought that it would discourage single parents from working because they could reap the benefits from these programs. Temporary Assistance for Needy Families (TANF) was then its replacement which would only give support for 2 years consecutively and 5 years total in a lifetime. After the Welfare Reform Act of 1996, made to bar more people from receiving aid, states were able to use the money for various projects that fell under public safety. As a result, When the states needed to provide money to those in need during the Great Recession, many states could not supply aid due to their funding going elsewhere.
Ultimately, I think that the impact of TANF and the Welfare Reform Act both exemplify the importance of continuing to provide federal categorical grants, in order to ensure financial security to families, individuals, and households in need. The most recent report has clear results of the success of government programs aiding poverty. As COVID-19 persists through 2021 it is clear more than ever that government aid can be utilized to improve the livelihood of those in need.
Questions:
Do you think that the government will continue to provide as much welfare assistance as last year?
Should the government continue to provide the same amount of support? Why or why not?
How do you think these programs will be used post-pandemic?
After learning about AFDC and TANF, do you think that it is better for the federal government to provide aid rather than the states?
Sources:
https://www.census.gov/newsroom/press-releases/2021/income-poverty-health-insurance-coverage.html
https://www.census.gov/newsroom/blogs/random-samplings/2018/09/what_is_the_suppleme.html
https://www.nytimes.com/2021/09/14/business/economy/census-income-poverty-health-insurance.html
More Links:
To read the full report:
https://www.census.gov/newsroom/press-releases/2021/income-poverty-health-insurance-coverage.html
How Poverty is Measured:
https://www.census.gov/newsroom/blogs/random-samplings/2018/09/what_is_the_suppleme.html
In-depth article on how COVID prompted more financial aid:
9 comments:
I think that the government will not continue to provide as much welfare assistance as last year because of the sheer amount of money that is needed to provide welfare. It would be very difficult to lobby for a level of support meant for a time of crisis where many people were unemployed and had no ability to support themselves even if they wanted to. Because of this, I'm not sure the government should continue the same amount of support, especially in the form of cash handouts. However, there should definitely be an initiative for people to go back to work and a solution to the current labor shortage. Part of that might include government support in other forms such as healthcare and policies to make it easier to live comfortably such as housing reform.
I think it's difficult to determine the extent to which the federal government should continue their pandemic-aid in the future when the larger issue at hand is the social and economic aftermath rather than the sickness itself. Obviously, the states are handling the pandemic very differently, with some states going as far as imposing anti-mask mandates in schools causing the mass and continued spread of covid. Things like this make it seems like there's no end in sight, and due to circumstances like these preventing some citizens, who may disagree with their states mandates, from moving forwards it seems as though the American government should continue to supply ample and sufficient financial aid. Of course, there should be a shift of focus to supplemental programs and initiatives as well that help kickstart people's search for employment (etc) as workplace safety mandates become less of an obstacle, rather than having the focus on direct financial aid. Ideally this would help to ease citizens back into a pre-covid working lifestyle while still maintaining a livable one in the present. I think that overall the amount and style of aid which the government provides should change, but in a time frame which allows realistic lifestyle adjustment for American citizens.
As the pandemic rages on, the federal government should continue to support struggling Americans. Although the pandemic has improved in America, according to the Burea of Labor Statistics, the unemployment rate now is still higher than the pre-pandemic unemployment rate. Until more people have jobs and are no longer struggling from the devastating economic toll the pandemic has caused, the federal government needs to continue to provide financial aid. I also think that the programs created with the American Rescue Plan, such as the Child Tax Credit, should continue in the future. This specific part of the plan makes tax credits more accessible to more families, whereas before, only certain people qualified for it. I think that this act will have long-term benefits and will help families who are still struggling financially in the years to come. Overall, I think that the best way to provide Americans with economic relief is through federal acts. Although some may argue that this is inefficient and may take too long to make change happen, it is actually necessary in order to provide real and reliable relief for Americans. Throughout COVID, much of the decision-making has been placed in the hands of the states. As Mary pointed out, this has led to inconsistency in regulations and practices, and some may argue, it has led to the “never-ending surge.” I think that the federal government can help this situation and use its power to help the struggling Americans who states may have let down.
https://www.whitehouse.gov/american-rescue-plan/
I never thought about how the states might make things a little unorganized, but I think that this is a very valid thought. The inconsistency can lead to some states having more cases while others having fewer. With the delta variant going around, I think that there will be continued job loss and an increase in poverty. If this happens it is fundamental that the government continues aiding those who can’t support themselves, if not it could heavily hurt the economy. I think that the programs will significantly help those who are out of jobs or will lose their jobs if COVID gets even more out of hand. The federal government needs to use its power to continue to help struggling Americans through the pandemic, as it is still continuing. I think that while it is true people should continue looking for jobs to help support the economy and themselves, a little financial aid would significantly help with some of the struggles they may be facing. This could even give a boost of encouragement as they wouldn’t feel so helpless in a system where it is hard to get out of poverty. All in all, I agree that the federal government needs to continue its aid in order to not only aid the economy but also provide support for those in poverty due to COVID-19
I think it is especially important that the government continues to provide financial aid right now, as the pandemic is still affecting how the economy is doing. Additionally, America's aid last year was clearly successful, as seen by the decrease in America's poverty rate. Therefore, to keep this trend, the government should continue its welfare programs. I also believe it is important to find a balance between federal and state power when it comes to providing aid. On one hand, states should be able to adapt their spending to what best fits their areas. However, we saw with AFDC and TANF that too loose of restrictions could lead to wasteful spending by states, so finding a middle ground is essential.
I find it quite stunning that the poverty measured actually decreased last year with the pandemic. If anything I think this shows how effective the stimulus checks were in a way. The fact that supplemental poverty increased and not official poverty measure emphasizes this fact. This does beg the question “Was the stimulus check possibly too much money?” I do like the idea of getting people out of poverty. 11.7 million people coming out of poverty due to stimulus checks is a lot and I fully support this notion. Yet, I also do understand the viewpoint that this money could be used elsewhere for other policies especially considering what the people will be like after the stimulus check is gone. However, I still lean towards the idea that the stimulus check was a success because it kept people out of poverty (its intended goal) and even lifted some out of poverty. A new chance and opportunity for many who were facing otherwise dire circumstances. I also do like the comparison with the Welfare Reform Act of 1996 and how states were unable to fund TANF properly during the Great Recession. One thing that I’m curious about is whether or not the federal government will continue to supply these stimulus checks to poor people even without the pandemic. My prediction is no because they don’t have the pandemic to give them a reason to and the backlash from the republicans would be astonishing. Because of this, I feel like a lot of people will fall back in poverty despite the stimulus checks handed out recently. I do agree that categorical grants are very important but this one doesn’t seem sustainable. Otherwise, the federal government would have to find the money somewhere (the stimulus bills were worth billions of dollars) or continue to add debt that seems to become impossible to repay. Financially, it almost seems impossible for such a thing to be sustained. However, I do feel like the government under Democratic control/leadership will continue to help the poor and aid them when needed. This, I totally support as long as there is not excessive spending and if the spending is done right under the right governmental aid and program.
TANF, as we learned in class, is being used to help people on the brink of poverty instead of helping people in poverty escape. In the past, the government had only re-arranging welfare money instead of increasing its budget - so this is a step in the right direction. I believe the government needs to continue increasing welfare programs - especially since they've continued to be hard on drugs which only continues the cycle of poverty. The US has the highest amount of people in prisons worldwide, which is absurd and its becoming increasingly obvious that this is their way of dealing with the intense poverty people are suffering through instead of attacking the root.
TANF, as we learned in class, is being used to help people on the brink of poverty instead of helping people in poverty escape. In the past, the government had only re-arranging welfare money instead of increasing its budget - so this is a step in the right direction. I believe the government needs to continue increasing welfare programs - especially since they've continued to be hard on drugs which only continues the cycle of poverty. The US has the highest amount of people in prisons worldwide, which is absurd and its becoming increasingly obvious that this is their way of dealing with the intense poverty people are suffering through instead of attacking the root.
TANF, as we learned in class, is being used to help people on the brink of poverty instead of helping people in poverty escape. In the past, the government had only re-arranging welfare money instead of increasing its budget - so this is a step in the right direction. I believe the government needs to continue increasing welfare programs - especially since they've continued to be hard on drugs which only continues the cycle of poverty. The US has the highest amount of people in prisons worldwide, which is absurd and its becoming increasingly obvious that this is their way of dealing with the intense poverty people are suffering through instead of attacking the root.
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