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Home Publications Blogs CEPR Blog Should the War on Poverty Be Judged by Whether It Enabled Seniors to “Break Free” from Social Security?

Should the War on Poverty Be Judged by Whether It Enabled Seniors to “Break Free” from Social Security?

Wednesday, 11 December 2013 14:36

In a post highlighting some findings from a new Columbia paper on poverty trends over the last five decades, Brad Plumer writes:

"The 'war on poverty' has been less successful in helping people break free from the need for safety-net programs in the first place. That is, if you don't factor in all these programs, then the [share] of Americans with incomes below the poverty line has actually grown, from 26 percent in 1967 to 29 percent in 2012."

This is a somewhat puzzling characterization because it implies that one of the goals of the “war on poverty” was to help, say, the elderly “break free” from Social Security and Medicare, college students to break free from student financial aid, or poorly compensated workers to break free from the Earned Income Tax Credit. 

It would have been more accurate for Plumer to explain that the (quite intentional) weakening of labor market institutions like collective bargaining and the minimum wage over the last several decades has increased the likelihood that workers end up trapped in poorly compensated jobs. Programs that socialize a portion of employer’s labor costs, like the EITC, have helped many poorly compensated workers with children break free from the poverty their inadequate wages would otherwise consign them to, but these programs would be much more effective if combined with improved labor standards.

This is important to note for at least two reasons. First, Plumer’s statement may lead many readers to think that working-class people haven’t been doing enough on their own to “break free” from means-tested programs, while in fact, low-income people today are better educated than ever and the labor force participation rate of low-income mothers (and mothers and women generally) steadily increased following LBJ’s war-on-poverty declaration. Second, it is a reminder that, as Paul Starr has noted: the idea of a war on poverty without strengthening the hand of labor was a great mistake”, one made in part because “too many liberals thought of poverty only as a policy problem, not as a reflection of the underlying distribution of power that politics could alter.”

Finally, while Plumer’s article gives LBJ the credit for launching a “war on poverty”, it would have been helpful for him to also explain that the war itself was a fairly conservative initiative, one taken to scale in no small part by President Nixon and conservative Southern Democrats. 

Tags: EITC | inequality | labor | poverty | Social Security

Comments (2)Add Comment
written by Kat, December 13, 2013 8:10
Keep plugging away. I confess; I find this discussion dispiriting in the extreme. Strengthening labor's hand-- why do so many not get this? In discussions with liberal friends it seems all they can imagine is some Geoffrey Canada vision of "wraparound services", as if all that is required to alleviate poverty is hooking people up with services. I was talking with someone about the bleak Christmas atmosphere. Donations to charity are down here, occupancy in family shelters is up. As an example of "misguided priorities" of the city, she pointed to spending on some beautification project the city was undertaking and noted that the money could be spent on building another homeless shelter. There are a lot of misguided priorities, to be sure but government spending on jobs (as opposed to tax credits for "job creators") is certainly not one of them.
In the NYT feature on Dasani, a child living in a homeless shelter they describe her session with a counselor. The counselor is made out to be clueless and her teacher states "I need (a counselor) with a Phd." I wanted to scream "she doesn't need a Phd. She needs a home.!".
written by watermelonpunch, December 18, 2013 12:25
written by Kat, December 13, 2013 9:10
Keep plugging away. I confess; I find this discussion dispiriting in the extreme.

Me too!

When I hear "war on poverty" - All I can think is that these days, it's a war on the poor. At best, people think the poor ought to be warring against poverty somehow but are not.
Just saw someone on god forsaken facebook complaining about people on welfare at the same time as complaining about how poor wages are.

Nobody gets it, because the struggling have been pitted against the slightly more poor.

The lack of solidarity is disheartening in the extreme.

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