LBJ's War on Poverty recently celebrated its 50th Anniversary. The argument over poverty is one which has raged for centuries and continues today. No one argues against helping people out of poverty; the argument rages over how to help. There are ideological differences in the approach which different people support. No one, despite the rhetoric, is for throwing people out into the streets or over a cliff.
The War on Poverty has not changed much since its inception 50 years ago. Poverty reduction approaches have relied on the Government to fund them. More accurately, the employed support those in poverty through a series of taxes, credits and other distributive measures. In the past, as today, churches and other local charities do their best to help out those in need.
Further, poverty rates have not changed since the initial inception of the War on Poverty. There was a large drop in the poverty rate between 1961 and 1969. But, ever since then, the rates have changed with employment and the overall economic atmosphere of the country.
Can it truly be proven that the fall of poverty was due to "The War on Poverty?" After all, what else happened at this same time? The Sixties were made up of two huge movements, racial equality and the rise of feminism. Both of these movements, at the time, demanded equality in the workplace, voter booth, school, etc. This lead to a rapid infusion of employees. They had previously been discouraged from working to support their families at the fullest potential.
The economic milieu in which the War on Poverty arose is noteworthy. As of 1965, the number of Americans living below the official poverty line had been declining continuously since the beginning of the decade and was only about half of what it had been fifteen years earlier. Between 1950 and 1965, the proportion of people whose earnings put them below the poverty level, had decreased by more than 30%. The black poverty rate had been cut nearly in half between 1940 and 1960. In various skilled trades during the period of 1936-59, the incomes of blacks relative to whites had more than doubled. Further, the representation of blacks in professional and other high-level occupations grew more quickly during the five years preceding the launch of the War on Poverty than during the five years thereafter. (HOW THE WELFARE STATE HAS DEVASTATED AFRICAN AMERICANS)
In the 1960's, black people accounted for 10.5% of the United States population. It is also noted, at this time they migrated north for better jobs and to escape racial violence in the South.
Also noted, is the differences in cost of living. Notice the figure on the left, where most of the poverty is concentrated in the South. Cost of living in these areas is substantially lower than in other part of the United States. It takes a lower income to survive and put food on the table in these areas. If it costs less to live, it is highly likely that incomes would be lower, and therefore be lumped in as below the poverty line.
Obviously, women accounted for around 50% of the population. Their arrival in the workplace also increased family incomes and brought some out of poverty level living.
Is it not feasible that much of the rhetoric surrounding poverty measures is misinformation?
How about we start preventing and actually doing something about poverty? Just like healthcare, treating the onset prevents the long term affliction and can lead to a fuller, more satisfying, life.
North Carolina may have shown us the way and the proof. Last summer, North Carolina slashed benefits from unemployment. The result? The lowest unemployment rate in 5 years (see figure on left). If the incentive to stay home is removed, it is amazing how many people return to work. It will be interesting to see how this plays out as it continues.
As discussed in Want Jobs? Cut Corporate Taxes!, Corporate taxes prevent job creation. It is time to cut corporate taxes and subsidies, while we are at it, to allow for cheaper products.
Related to the above is hidden taxation. As discussed in Hidden Taxes: A True Burden on America the hidden tax burden is over $17,000 per American family per year. What family would not do better with this much more spending power? And, what is the effects on the economy when the money is kept in consumer's hands?
Scrap the progressive tax code and move to a flat or fair tax. Both of these options will induce all levels of income to be involved in politics and pay attention to the spending of our governments, especially at the Federal level. If everyone has skin in the game, the out of control spending in Washington will end FAST! For all Americans, regardless of income, this is a good thing.
Education is key. To fight poverty, education is where it must start. Education does not need more funding, it needs a different format and more creativity. In other words, it needs a free market where schools compete for kids. Several proposals should be considered; the voucher program, school choice, and many others are out there. Let's start looking at something new, instead of doing insanity...the same thing over and over.
There are many other ideas that can be explored. It is sufficient to say, our current system is not reducing poverty any longer and has not since the late 1960's. We should begin trying new things that can have an effect and have been proved through other legislation in the past. Putting these ideas together will only help those in poverty and strengthen our country as a whole.
