Wednesday, July 11, 2018

'Extreme Poverty' Extremely Rare in the U.S.: New Research

As I've noted previously, the U.N.'s number was absurd, relying on a definition of extreme poverty that no one else uses.

There is a legitimate debate over the true extent of extreme poverty - typically defined as a household income under $2 per person per day, which is something like one-tenth of the poverty line - with estimates ranging from a few hundred thousand to a few million.

The authors were unable to identify a single family with children that was extremely poor in their data.

Claims of rampant extreme poverty first rose to prominence with the 2015 publication of the book $2 a Day, the central claim of which was that 4 percent of American families with children fell below that cutoff - largely because the 1996 welfare reform made it harder to get cash assistance.

Their raw estimate, based only on cash income reported in the survey, is that 3 percent of all households live in extreme poverty.

Demonstrate beyond a doubt that claims of extreme poverty are tremendously overblown.

The results are similar when they switch gears, repeating the analysis with the Current Population Survey's Annual Social and Economic Supplement, another government survey they can match to their administrative data: Just 0.12 percent of households are in extreme poverty once the proper corrections are made.

https://www.nationalreview.com/2018/07/extreme-poverty-extremely-rare-in-america-new-research/ 

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