Billionaires Are Soaring, Poor Kids Are Losing More
By Rajan MenonFebruary 03, 2020 "Information
Clearing House" -
The plight of impoverished
children anywhere should evoke sympathy,
exemplifying as it does the suffering of the
innocent and defenseless. Poverty among children in
a wealthy country like the United States, however,
should summon shame and outrage as well. Unlike poor
countries (sometimes run by leaders more interested
in lining their pockets than anything else), what
excuse does the United States have for its striking
levels of child poverty? After all, it has the
world’s 10th highest per capita income at
$62,795 and an unrivalled gross domestic product
(GDP) of
$21.3 trillion. Despite that, in 2020, an
estimated
11.9 million American kids -- 16.2% of the total
-- live below the official poverty line, which is a
paltry
$25,701 for a family of four with two kids. Put
another way,
according to the Children's Defense Fund, kids
now constitute one-third of the 38.1 million
Americans classified as poor and 70% of them have at
least one working parent -- so poverty can’t be
chalked up to parental indolence.
Yes, the proportion of kids living below the
poverty line has zigzagged down from
22% when the country was being ravaged by the
Great Recession of 2008-2009 and was even higher in
prior decades, but no one should crack open the
champagne bottles just yet. The relevant standard
ought to be how the United States compares to other
wealthy countries. The answer: badly. It has the
11th highest child poverty rate of the 42
industrialized countries tracked by the Organization
for Economic Cooperation and Development (OECD).
Winnow that list down to European Union states and
Canada, omitting low and middle-income countries,
and our child poverty rate ranks above only Spain’s.
Use the poverty threshold of the OECD -- 50% of a
country’s median income ($63,178 for the United
States) -- and the American child poverty rate leaps
to 20%.
The United States certainly doesn’t lack the
means to drive child poverty down or perhaps even
eliminate it. Many countries on that shorter OECD
list have lower per-capita incomes and substantially
smaller GDPs yet (as a UNICEF
report makes clear) have done far better by
their kids. Our high child-poverty rate stems from
politics, not economics -- government policies that,
since the 1980s, have reduced public investment as a
proportion of GDP in infrastructure, public
education, and poverty reduction. These were, of
course, the same years when a belief that “big
government” was an obstacle to advancement took
ever-deeper hold, especially in the Republican
Party. Today, Washington allocates only
9% of its federal budget to children, poor or
not. That compares to
a third for Americans over 65, up from 22% in
1971. If you want a single fact that sums up where
we are now, inflation-adjusted per-capita
spending on kids living in the poorest families
has barely budged compared to 30 years ago whereas
the corresponding figure for the elderly has
doubled.
The conservative response to all this remains
predictable: you can’t solve complex social problems
like child poverty by throwing money at them.
Besides, government antipoverty programs only foster
dependence and create bloated bureaucracies without
solving the problem. It matters little that the
actual successes of American social programs prove
this claim to be flat-out false. Before getting to
that, however, let’s take a snapshot of child
poverty in America.
Sizing Up the Problem
Defining poverty may sound straightforward, but
it’s not. The government’s annual Official Poverty
Measure (OPM),
developed in the
1960s, establishes poverty lines by taking into
account family size, multiplying the 1963 cost for a
minimum food budget by three while factoring in
changes in the Consumer Price Index, and comparing
the result to family income. In
2018, a family with a single adult and one child
was considered poor with an income below $17,308
($20,2012 for two adults and one child, $25,465 for
two adults and two children, and so on). According
to the OPM, 11.8% of all Americans were poor that
year.