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Poverty in the U.S.: What You Need to Know & What You Can Do About It 2017 LSA Annual Conference Breakout Session Washington, DC Saturday, May 6, 2017 Delivered by Indivar Dutta-Gupta Co-Executive Director, Economic Security and Opportunity Initiative, Georgetown Center on Poverty and Inequality

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Page 1: Poverty in the U.S.: What You Need to Know & What You Can ...georgetownpoverty.org/wp-content/uploads/2017/06/Dutta-GuptaGrantG… · 6/5/2017  · Poverty in the U.S.: What You Need

Poverty in the U.S.:What You Need to Know & What You

Can Do About It

2017 LSA Annual Conference Breakout Session

Washington, DC

Saturday, May 6, 2017

Delivered by Indivar Dutta-Gupta

Co-Executive Director, Economic Security and Opportunity Initiative, Georgetown Center on Poverty and Inequality

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OVERVIEW

1. Who Experiences Poverty in the U.S.?2. What Difference Does Policy Make?3. What Can We Do?

2

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OVERVIEW

1. Who Experiences Poverty in the U.S.?2. What Difference Does Policy Make?3. What Can We Do?

3

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1. Who Experiences Poverty in the U.S.?

4

Poverty is EverywhereA.Nearly All Are at Risk, but Generally Disadvantaged Groups Are at Greatest Risk

B.

Little Poverty is Driven by Individuals AloneC.

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1. Who Experiences Poverty in the U.S.?

5

Poverty is EverywhereA.Nearly All Are at Risk, but Generally Disadvantaged Groups Are at Greatest Risk

B.

Little Poverty is Driven by Individuals AloneC.

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SE & SW Have Highest Poverty Counties

1. Who Experiences Poverty in the U.S.?

6

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Metro Counties Have Lower Official Poverty

1. Who Experiences Poverty in the U.S.?

7Source: USDA, Economic Research Service, using 2011-15 5-year estimates from U.S. Census Bureau, American Community Survey

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1. Who Experiences Poverty in the U.S.?

8

Poverty is EverywhereA.Nearly All Are at Risk, but Generally Disadvantaged Groups Are at Greatest Risk

B.

Little Poverty is Driven by Individuals AloneC.

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Source: Wonkblog, using Mark Rank’s analysis of PSID data9

Most of Us Experience Economic Hardship by

Age 35

1. Who Experiences Poverty in the U.S.?

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Source: IRP, using data from U.S. Census Bureau, Current Population Survey 10

African Americans & Latinos Face Highest Risks

of Poverty

1. Who Experiences Poverty in the U.S.?

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1. Who Experiences Poverty in the U.S.?

11

Women of All Races Are More Likely than Men to

Be Poor

Source: IWPR, using data from U.S. Census Bureau, American Community Survey

Adult Poverty Rates by Gender and Race/Ethnicity, 2013

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Children & Elderly Have Higher Poverty Rates

12

1. Who Experiences Poverty in the U.S.?

Source: IRP, using data from U.S. Census Bureau, Current Population Survey

Poverty Rates for Total Population & by Age Group, 2015

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1. Who Experiences Poverty in the U.S.?

13

Poverty is EverywhereA.Nearly All Are at Risk, but Generally Disadvantaged Groups Are at Greatest Risk

B.

Little Poverty is Driven by Individuals AloneC.

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11.4%

2.0%

26.9%

76.0%

All persons All three One or two None

Po

vert

y R

ate

s

High School Graduate, Delayed Childbirth after Marriage, Employed Full-Time, 2007

14

1. Who Experiences Poverty in the U.S.? High School, Delayed Parenthood, & Full-Time

Work ↓ Poverty

Source: Ron Haskins and Belle Sawhill, Creating an Opportunity Society

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0 Norms6.9%

1-3 Norms (or Disabled or Elderly)

93.1%

15

1. Who Experiences Poverty in the U.S.?

Social Norms Explain Very Little Poverty

Source: Author’s Calculations

Share of Total Poverty Population by Social Norms Adhered to, 2007

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50%

42%

26%

Mother Continuously Marriedbetween Birth and 19th

Birthday

Mother Unmarried at Birth Mother Ever-Divorced

16

1. Who Experiences Poverty in the U.S.? Divorce May Make Exiting Poverty Harder Than Having

a Single Mom

Source: Pew Economic Mobility Project

Share of Children Moved From Lowest 1/3 to Highest 2/3 of Income Distribution as Adults

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OVERVIEW

1. Who Experiences Poverty in the U.S.?2. What Difference Does Policy Make?3. What Can We Do?

17

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2. What Difference Does Policy Make?

18

Economy is Major Driver of PovertyA.Strong Economic Security Programs PovertyB.

Meager, Inaccessible Programs PovertyC.Criminal Justice & Immigration Systems Perpetuate PovertyD.

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2. What Difference Does Policy Make?

19

Economy is Major Driver of PovertyA.Strong Economic Security Programs PovertyB.

Meager, Inaccessible Programs PovertyC.Criminal Justice & Immigration Systems Perpetuate PovertyD.

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Source: Center on Budget and Policy Priorities analysis of data from U.S. Census Bureau, National Bureau of Economic Research 20

2. What Difference Does Policy Make? Full Employment ↓ Poverty More Than Any

Other Strategy

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$19.35/hr

NATIONAL HOUSING

WAGE:

$7.25/hr

FEDERAL MINIMUM

WAGE:

21

2. What Difference Does Policy Make? Low Minimum Wage Contributes to Poverty

Source: Bureau of Labor Statistics, Bureau of Economic Analysis, Pew Research Center Analysis

Federal Minimum Wage, 1938-2014

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22

2. What Difference Does Policy Make? Unequal Pay Also Contributes to Poverty

Source: Institute for Women’s Policy Research calculations based on the Current Population Survey Annual Social & Economic supplements, 2014-2016, for calendar years 2013-2015; all in 2016 dollars

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2. What Difference Does Policy Make?

23

Economy is Major Driver of PovertyA.Strong Economic Security Programs PovertyB.

Meager, Inaccessible Programs PovertyC.Criminal Justice & Immigration Systems Perpetuate PovertyD.

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2. What Difference Does Policy Make? Tax & Transfer Programs Nearly Cut Poverty in

Half

Source: Center on Budget and Policy Priorities analysis of data from U.S. Census Bureau

Supplemental Poverty Rate, 2015

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25

Giving Money to Poor Families Helps Kids in the

Long Run

2. What Difference Does Policy Make?

Source: Center and Budget and Policy Priorities analysis of research by Greg Duncan and Katherine Magnuson

Effect of $3,000 Annual Income Increase During Early Childhood (Ages 0-6) on Child’s Later Earnings

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2. What Difference Does Policy Make?

26

Economy is Major Driver of PovertyA.Strong Economic Security Programs PovertyB.

Meager, Inaccessible Programs PovertyC.Criminal Justice & Immigration Systems Perpetuate PovertyD.

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Guaranteed Benefits Work; Block Granting

Benefits Doesn’t

27

2. What Difference Does Policy Make?

Source: Center on Budget and Policy Priorities

Children Lifted Above 1/2 of Poverty Line by Means-Tested Benefits, Using SPM-Like Measure

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Our Policies Leave Many Behind

2.1%2.4%

3%

2.6%

0

1

2

3

4

1995 2000 2005 2010

% C

hild

ren

Bel

ow

1/2

Po

vert

y Li

ne

From 1995 to 2010, the percentage of

children in deep poverty

grew

Source: Center on Budget and Policy Priorities28

2. What Difference Does Policy Make?

Children in Deep Poverty (Below 1/2 of Poverty Line), Counting Government Benefits & Adjusted for Underreporting of Benefits

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2. What Difference Does Policy Make?

29

Economy is Major Driver of PovertyA.Strong Economic Security Programs PovertyB.

Meager, Inaccessible Programs PovertyC.Criminal Justice & Immigration Systems Perpetuate PovertyD.

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2. What Difference Does Policy Make?

30

Mass Incarceration Creates Poverty

Source: National Academies

Prison & Jail Incarceration Rates, Ages 18-64, 1972-2010

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2. What Difference Does Policy Make?

31

Lack of Legal Status & Path to Citizenship

Creates Poverty

Source: Center for American Progress

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OVERVIEW

32

1. Who Experiences Poverty in the U.S.?2. What Difference Does Policy Make?3. What Can We Do?

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3. What Can We Do?

33

Innovate, Evaluate, & ReplicateA.

Advocate for Sound Policy & Greater RevenuesB.

Change Views on Race & ImmigrationC.

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3. What Can We Do?

34

Innovate, Evaluate, & ReplicateA.

Advocate for Sound Policy & Greater RevenuesB.

Change Views on Race & ImmigrationC.

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Identify, Develop, & Test New Cross-Sector Service Delivery Approaches

• Treating Behavioral Health Challenges

• Helping Young Adults Pursue Careers

• Employing Formerly Incarcerated

• Caring for Elderly & People with Disabilities

• Housing as a Platform for Additional Services

35

3. What Can We Do? We Don’t Have All the Answers, & the World

Keeps Changing Regardless

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3. What Can We Do?

36

Innovate, Evaluate, & ReplicateA.

Advocate for Sound Policy & Greater RevenuesB.

Change Views on Race & ImmigrationC.

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I. CASH & HOUSINGChild AllowanceTANF/GAUI/Job Seekers AllowanceAffordable Housing

II. EMPLOYMENTJob CreationMinimum Wage/Pay EquityWage TheftFair Scheduling/Flexibility

III. FAMILY STRENGTHEarly Learning & CarePaid LeaveMedicaid/Health Care

IV. DEMOCRACYDecriminalization & De-carcerationImmigration ReformVoting Rights

3. What Can We Do? We Know What a Strong Foundation for Economic

Security Looks Like

37

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3. What Can We Do? Our Economic Security System Requires More

Taxes

Source: Center on Budget and Policy Priorities

Spending & Revenue as Percent of GDP, 1995-2046

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39

3. What Can We Do?

Source: Citizens for Tax Justice using OECD data, US data from Treasury & U.S. Census 2016

The United States is a Low-Tax Country

OECD Countries’ 2014 Taxes as % of GDP

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3. What Can We Do?

Source: Economic Policy Institute

Most OECD Countries Drastically Reduce Their Poverty Rates Through Redistribution

Our Tax System Does Far Less to Reduce Poverty

Than Others’

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3. What Can We Do?

41

Innovate, Evaluate, & ReplicateA.

Advocate for Sound Policy & Greater RevenuesB.

Change Views on Race & ImmigrationC.

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3. What Can We Do? Animosity Toward People of Color/Immigrants Inhibits Strong Economic Security

System

Source: Figure 1: Salon. Figure 2: James C. Garand et al.42

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CONCLUSION

43

1. Who Experiences Poverty in the U.S.?A. Poverty is EverywhereB. Nearly All Are at Risk, but Generally Disadvantaged Groups Are at

Greatest RiskC. Little Poverty is Driven by Individuals Alone

2. What Difference Does Policy Make?A. Economy is Major Driver of Poverty

B. Strong Economic Security Programs Poverty

C. Meager, Inaccessible Programs Poverty

D. Criminal Justice & Immigration Systems Perpetuate Poverty

3. What Can We Do?A. Innovate, Evaluate, & ReplicateB. Advocate for Sound Policy & Greater RevenuesC. Change Views on Race & Immigration

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Indivar Dutta-Gupta | [email protected] | @IndivarD

Kali Grant | [email protected] | @KaliGrant

Casey Goldvale | [email protected] | @CGoldvale

@GtwnLawPovCntr

44

Prepared by