Poverty in the U.S.: What You Need to Know & What You Can Do About It

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 Indivar Dutta-Gupta Co-Executive Director, Economic Security and Opportunity Initiative, Georgetown Center on Poverty and Inequality Please do not quote, cite, or distribute information included in this presentation without permission.

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

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

1. Who Experiences Poverty in the U.S.? A. Poverty is Everywhere B. C. Nearly All Are at Risk, but Generally Disadvantaged Groups Are at Greatest Risk Little Poverty is Driven by Individuals Alone 4

1. Who Experiences Poverty in the U.S.? A. Poverty is Everywhere B. C. Nearly All Are at Risk, but Generally Disadvantaged Groups Are at Greatest Risk Little Poverty is Driven by Individuals Alone 5

1. Who Experiences Poverty in the U.S.? Southeast & Southwest Have Highest Poverty Counties 6

1. Who Experiences Poverty in the U.S.? Metro Counties Have Lower Official Poverty 7

1. Who Experiences Poverty in the U.S.? A. Poverty is Everywhere B. C. Nearly All Are at Risk, but Generally Disadvantaged Groups Are at Greatest Risk Little Poverty is Driven by Individuals Alone 8

1. Who Experiences Poverty in the U.S.? Most of Us Experience Economic Hardship by Age 35 Source: Wonkblog, using Mark Rank s analysis of PSID data 9

1. Who Experiences Poverty in the U.S.? African Americans & Latinos Face Highest Risks of Poverty Source: IRP, using data from U.S. Census Bureau, Current Population Survey 10

1. Who Experiences Poverty in the U.S.? Women of All Races Are More Likely than Men to Be Poor Poverty Rates by Gender and Race/Ethnicity, 2013 Source: IWPR, using data from U.S. Census Bureau, American Community Survey 11

1. Who Experiences Poverty in the U.S.? Poverty rates using the official and SPM measures for total population and by age group, 2015 Children & Elderly Have Higher Poverty Rates Source: IRP, using data from U.S. Census Bureau, Current Population Survey 12

1. Who Experiences Poverty in the U.S.? A. Poverty is Everywhere B. C. Nearly All Are at Risk, but Generally Disadvantaged Groups Are at Greatest Risk Little Poverty is Driven by Individuals Alone 13

Poverty Rates 1. Who Experiences Poverty in the U.S.? High School, Delayed Parenthood, & Full-Time Work Poverty High School Graduate, Delayed Childbirth after Marriage, Employed Full-Time, 2007 76.0% 26.9% 11.4% 2.0% All persons All three One or two None 14

1. Who Experiences Poverty in the U.S.? Social Norms Explain Very Little Poverty Share of Total Poverty Population by Social Norms Adhered to, 2007 0 norms 6.9% 1-3 norms (or disabled or elderly) 93.1% 15

1. Who Experiences Poverty in the U.S.? Divorce May Make Exiting Poverty Harder Than Having a Single Mom Share of Children Moved From Lowest Third to Highest Two-Thirds of Income Distribution as Adults 50% 42% 26% Mother Continuously Married between Birth and 19th Birthday Mother Unmarried at Birth Mother Ever-Divorced 16

OVERVIEW 1. Who Experiences Poverty in the U.S.? 2. What Difference Does Policy Make? 3. What Can We Do? 17

2. What Difference Does Policy Make? A. B. C. D. Economy is Major Driver of Poverty Strong Economic Security Programs Poverty Meager, Inaccessible Programs Poverty Criminal Justice System Perpetuates Poverty 18

2. What Difference Does Policy Make? Full Employment Poverty More Than Any Other Strategy 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? Tax & Transfer Programs Nearly Cut Poverty in Half Poverty Rate, 2015 Source: Center on Budget and Policy Priorities analysis of data from U.S. Census Bureau 22

2. What Difference Does Policy Make? Giving Money to Poor Families Helps Kids in the Long Run Source: Greg Duncan and Katherine Magnuson 23

2. What Difference Does Policy Make? Children Lifted Above Half of Poverty Line by Means- Tested Benefits, Using SPM-Like Measure Guaranteed Benefits Work; Block Granting Benefits Doesn t Source: Center on Budget and Policy Priorities 25

Percent of Children Below Half of Poverty Line 2. What Difference Does Policy Make? Our Policies Leave 4 Deep Poverty Many Behind 3 2 1 2.1% 2.4% 3% 2.6% From 1995 to 2010, the percentage of children in deep poverty grew 0 1995 2000 2005 2010 Percent of Children Below Year Half of Poverty Line, Counting Government Benefits & Adjusted for Underreporting of Benefits, 1995-2010 Source: Center on Budget and Policy Priorities 26

2. What Difference Does Policy Make? Low Minimum Wage Contributes to Poverty Federal Minimum Wage: $7.25/hr National Housing Wage: $19.35/hr 27

2. What Difference Does Policy Make? Prison and Jail Incarceration Rates, ages 18-64, 1972-2010 Mass Incarceration Creates Poverty Source: National Academies 29

2. What Difference Does Policy Make? Lack of Legal Status & Path to Citizenship Creates Poverty Source: Center for American Progress 30

OVERVIEW 1. Who Experiences Poverty in the U.S.? 2. What Difference Does Policy Make? 3. What Can We Do? 31

3. What Can We Do? A. Innovate, Evaluate, and Replicate B. Advocate for Sound Policy & Greater Revenues C. Change Views on Race & Immigration 32

3. What Can We Do? A. Innovate, Evaluate, and Replicate B. Advocate for Sound Policy & Greater Revenues C. Change Views on Race & Immigration 33

3. What Can We Do? We Don t Have All the Answers, & the World Keeps Changing Regardless 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 34

3. What Can We Do? A. Innovate, Evaluate, and Replicate B. Advocate for Sound Policy & Greater Revenues C. Change Views on Race & Immigration 35

3. What Can We Do? We Know What a Strong Foundation for Economic Security Looks Like Cash & Housing Child Allowance TANF/GA UI/Job Seekers Allowance Affordable Housing Employment Job Creation Minimum Wage/Pay Equity Wage Theft Fair Scheduling/Flexibility Family Strength Early Learning & Care Paid Leave Medicaid/Health Care Democracy Decriminalization & Decarceration Immigration Reform Voting Rights 36

3. What Can We Do? Our Economic Security System Requires More Taxes Source: Center on Budget and Policy Priorities 37

3. What Can We Do? The United States is a Low-Tax Country Source: Citizens for Tax Justice 38

3. What Can We Do? Our Tax System Does Far Less to Reduce Poverty Than Others Source: Economic Policy Institute 39

3. What Can We Do? A. Innovate, Evaluate, and Replicate B. Advocate for Sound Policy & Greater Revenues C. Change Views on Race & Immigration 40

3. What Can We Do? Hostility to People of Color/Immigrants Inhibits Strong Economic Security System Source: Figure 1: Salon. Figure 2: James C. Garand et al. 41

Conclusion 1. Who Experiences Poverty in the U.S.? Poverty is Everywhere Nearly All Are at Risk, but Generally Disadvantaged Groups Are at Greatest Risk Little Poverty is Driven by Individuals Alone 2. What Difference Does Policy Make? Economy is Major Driver of Poverty Strong Economic Security Programs Poverty Meager, Inaccessible Programs Poverty Criminal Justice & Immigration Systems Perpetuate Poverty 3. What Can We Do? Innovate, Evaluate, and Replicate Advocate for Sound Policy & Greater Revenues Change Views on Race & Immigration 42

Thank you Indivar Dutta-Gupta Co-Executive Director, Georgetown Center on Poverty and Inequality id141@georgetown.edu @indivard @GtwnLawPovCntr 43