Study: More Than Half a Trillion Dollars Spent on Welfare – But Poverty Levels Unaffected

“The vast majority of current programs are focused on making poverty more comfortable … rather than giving people the tools that will help them escape poverty.”


CNS News
More than 46 million Americans continue to live in poverty despite unprecedented federal welfare spending, the study finds. (AP Photo/J Pat Carter, File)
June 25, 2012





(CNSNews.com) – The government is not making much headway reducing poverty despite spending hundreds of billions of dollars, according to a study by the libertarian Cato Institute.
Despite an unprecedented increase in federal anti-poverty spending the national poverty rate has not declined, it finds.
“[S]ince President Obama took office, federal welfare spending has increased by 41 percent, more than $193 billion per year.” the study says.
Federal welfare spending this year now totals $668 billion, spread out over 126 programs, while the poverty rate that remains stubbornly high at nearly 15 percent – roughly where it was in 1965, when President Johnson declared a federal War on Poverty.
While the study concedes that some of the increased spending under Obama is a result of the recession and the counter-cyclical nature of anti-poverty programs, it also finds that some of the increase is deliberate, with the government having expanded eligibility for welfare programs.
“But the dramat­ically larger increase also suggests that part of the program’s growth is due to conscious policy choices by this administration to ease eligibility rules and expand caseloads,” the Cato report says. “For example, income limits for eligibility have risen twice as fast as inflation since 2007 and are now roughly 10 percent higher than they were when Obama took office.”


No comments: