Category: Poverty

As a follow up to my EITC post yesterday, I want to emphasize that one problem with the EITC is actually present in every single child tax benefit we have. In one form or another, all child tax benefits we have are earnings-related, meaning the lower your earnings, the less you get. This design, which… Continue reading Where Deep Child Poverty Comes From

A person is in poverty whenever the following is true of their income situation: (Market Income + Transfer Income – Taxes) < Poverty Threshold Thus, there are three ways to lift someone out of poverty: Increase their market income. Increase their transfer income Reduce their taxes. Given that the poor do not pay much tax… Continue reading Transfer Programs and Black Poverty

There is an argument about capitalism and poverty you see from time to time that goes like this. Capitalism is the greatest economic system for poverty reduction. Just look at developing countries like China or indeed the history of developed countries. Where capitalism flourishes, poverty plummets. Thus, those anti-poverty campaigners who criticize capitalism have it… Continue reading Arguments about Capitalism and Poverty

The “Success Sequence” is explained most recently as follows: Graduate from high school; Maintain a full-time job or have a partner who does; and Have children while married and after age 21, should they choose to become parents. Together, this is supposed to keep your risk of poverty very low. Last week I pointed out that rule (2)… Continue reading The Success Sequence Is Extremely Misleading And Impossible To Code