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Coonoor Behal

Casey B. Mulligan: Poverty Should Have Risen - NYTimes.com - 0 views

economix.blogs.nytimes.com/...poverty-should-have-risen

incentives perpetuatingpoverty recession povertyline povertyprograms

shared by Coonoor Behal on 05 Dec 12 - No Cached
  • When measured to include taxes and government benefits, poverty did not rise between 2007 and 2011, and that shows why government policy is seriously off track.
  • rnment help, that amounts to 100 percent taxation (providing more benefits as income falls is sometimes called “implicit taxation”).
  • It is almost as if our present programs of public assistance had been consciously contrived to perpetuate the conditions they are supposed to alleviate.
  • ...5 more annotations...
  • Under the Obama administration, workers with disposable income in the neighborhood of the poverty line did not, on average, see their job losses during the recession translate into significant reductions in their disposable income.
  • it is possible for the government to help too much
  • The results suggest that the government was helping too much.
  • the percentage of people in households with disposable income less than the poverty line was 15 percent in 2011, just as it was in 2007 before the recession began.
  • Erasing incentives is not the way to a civilized society but rather to an impoverished one.
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