In the past 55 years, the American federal government has invested trillions of dollars on programs to help the poor. Although they have succeeded in some cases, non-working adults and their children tend to be left behind. The latest data available (released in February 2019, but estimates are from 2015) estimated that over 9.6 million children in the U.S. were living below the poverty line. Of that group, 2.9% were living in “deep poverty.” According to the National Academies of Sciences, Engineering, and Medicine census report, poor children face a future with lower earnings and income. This is at the root of why poor people stay poor.
Weakened Development
Sadly, children who grow up in poverty develop weaker language, memory, and self-regulation skills. As a result, not only do they face lower earnings and income potential but they also become more likely to depend on public assistance.
The census report points to poverty as the cause of negative outcomes for these children. Those exposed to poverty in early childhood, or who live in poverty for most of their younger years, are the most likely to experience poverty issues as adults.
The lost adult productivity that results from childhood poverty costs between $800 billion and $1.1 trillion annually. This includes the increased costs of crime and health care.
Policy To Fight Childhood Poverty
There are several existing policies designed to fight poverty. The most successful programs that have helped include:
- Child educational and health outcomes have been improved thanks to increases in the Earned Income Tax Credit (EITC) program.
- The Supplemental Nutrition Assistance Program (SNAP) helped improve birth outcomes and other critical child and adult health outcomes.
- Expansions of public health insurance for pregnant women, infants, and children have not only assisted in improvements in health, but also had positive impacts on educational attainment, employment, and earnings.
- Young children who received support through housing benefits and moved to areas with lower poverty had improved educational and adult outcomes.
These positive results contribute to the reduction of generational poverty issues.
New Policies Coming
The report recommends two new policies to assist in managing child poverty. The ‘means-tested supports and work package’ achieves a 50% poverty reduction through expansion to existing programs. Because the programs already exist, this approach can yield child poverty reductions more quickly than two other proposals mentioned in the report.
The universal supports and work package would see the same results. This policy combines some of the existing programs with new programs focused on providing incentives to work, improved economic security, and creating social inclusion.
Keeping The Poverty Rate Lower
Without the EITC and the refundable portion of the Child Tax Credit, child poverty would have increased from 13% to 18.9%. Without SNAP the child poverty rate would have increased to 18.2 percent. SNAP also impacts the number of children forced into deep poverty, which could have doubled without the program.
The report also notes that factors including unstable and unpredictable incomes, poor neighborhood conditions, and discrimination all contribute to the possible negative outcomes for these children. With accessible programs that help families save or provide emergency cash assistance or credit, more families can manage unexpected financial emergencies, and avoid falling into poverty.
