While aspects of poverty in the United States have changed significantly since colonial times, debates about how best to alleviate this condition continue to revolve around issues of morality as well as economics. In eighteenth-and early-nineteenth-century America, most people worked throughout their lives at a succession of unstable jobs, under unhealthy conditions. Widows, immigrants, the ill, and the elderly generally had few sources of support outside their own poor families. Town-ships and counties resorted to such drastic solutions as auctioning off poor local residents to local farmers. Indigent nonresidents would simply be sent out of town. The primary form of public assistance, known as "out-door relief," consisted of food, fuel, or small amounts of money. Poorhouses were founded to serve the indigent more cheaply than outdoor relief while discouraging them from applying for further public assistance. Especially in the North, poorhouses attempted to improve their residents' personal habits. Supervised work, such as farming, weaving, and furniture building, was required; alcohol was forbidden.
Poorhouses became notorious for overcrowding, filth, disease, and corrupt management. Reformers also increasingly criticized outdoor relief for demoralizing the poor and attracting idlers and drunks. By the Civil War (1861–1865), private relief associations run by evangelical Protestants, immigrant groups, and upper-class women's groups had begun to assume a more bureaucratic form. The Charity Organization Society, founded in Buffalo, New York, in 1877 (chapters were established in most U.S. cities by 1892) attempted to systematize relief by sending volunteers to investigate the circumstances of each applicant and advise them on how to live a respectable life. Handouts were to be given only in cases of extreme need. This approach, known as "scientific charity," proved impractical. Yet elements of its method evolved into the caseworker system of social welfare agencies.
At the end of the nineteenth century, one-fifth to one-quarter of the poorhouse population was long-term—primarily elderly people, along with the mentally ill and the chronically sick. Most inmates—out-of-work men, or women giving birth to illegitimate children—stayed only for a week or two at a time. Poor children were generally separated from their parents and moved into orphan asylums. Increasingly, the able-bodied homeless slept on police station floors and in the new shelters (municipal houses or wayfarers' lodges) that began to open around the turn of the century.
Defining Poverty Levels
Attempts to define poverty levels in the United States have long been arbitrary and controversial. From about 1899 to 1946, poverty minimum subsistence levels were based on "standard budgets"—goods and services a family of a certain size would need to live at a certain level. In his 1904 book Poverty Social Worker, Robert Hunter set one of the first national poverty line figures: below $460 annually for a five-person family in the North; below $300 for the same size family in the South. A study commissioned by the Congressional Joint Committee on the Economic Report in 1949 determined the poverty line to be $1,000 for farm families and $2,000 for nonfarm families.
In 1965, the federal government adopted landmark poverty thresholds, devised by economist Molly Orshansky, that took into account household sizes and types (such as elderly or nonelderly). Specifying an amount of money adequate for a family might be fraught with difficulties, Orshansky wrote, but it was possible to determine a level that was clearly insufficient. She based her figures on information from the Department of Agriculture, using the "economy" food plan—the cheapest of the four standard food plans, intended for "temporary or emergency use when funds are low"—and a survey showing that families of three or more people spent about one-third of their after-tax income on food. Lacking minimum-need standards for other household necessities (such as housing, clothing, and transportation), Orshansky simply multiplied these food costs by three to determine minimum family budgets.
In 1969, the thresholds began to be indexed to the Consumer Price Index rather than the cost of the economy food plan. The weighted average poverty thresholds established by the U.S. Census Bureau for 2001 range from $8,494 for an individual 65 or older to $39,413 for a family of nine people or more with one related child under eighteen.
This measurement of poverty has been widely criticized. It does not account for noncash government benefits, such as free school lunches or food stamps, and it fails to account for geographic differences in the cost of living. Critics also believe the thresholds do not properly reflect the overall rise in U.S. income since the 1960s.
Who Are the Poor?
Measurements of the extent of poverty in the United States depend, of course, on how it is defined. Poverty is a relative term; it must be understood differently for an affluent postindustrial culture than for a developing country. As the economist John Kenneth Galbraith wrote, "People are poverty-stricken when their income, even if adequate for survival, falls markedly behind that of the community."
In his groundbreaking 1962 book The Other America: Poverty in the United States, Michael Harrington called attention to a group of between 40 million and 50 million Americans (20 to 25 percent of the population at that time) living without adequate nutrition, housing, medical care, and education—people deprived of the standard of living shared by the rest of society. Harrington derived his figures from several sources, including a late-1950s survey by sociologist Robert J. Lampman and family budget levels from the Bureau of Labor Statistics.
In 2000, 11.3 percent of the population—31.1 million people—were considered poor, continuing a decline in poverty that began during the economic boom of the mid-1990s, when the poor accounted for 14.5 percent of the population. Before then, the last major decline occurred between 1960, when the rate was 22.2 percent, and 1973 (11.1 percent).
As of 2002, child poverty rates also had fallen since their peak in 1993. Yet more than 11 million children—16.2 percent of all Americans 18 years old or younger—were living in poverty, about the same number recorded in 1980. This group included 17 percent of all children under the age of six. About 5 million children were living in extreme poverty, in families with incomes less than half of the poverty line. Among African Americans, the childhood poverty rate was 30 percent; among Latino families it was 28 percent.
The enormity of this continuing problem cannot be overstressed. The infant mortality rate is more than 50 percent higher in poor families. Children growing up in poverty are more likely to drop out of high school and become parents in their teens, more likely to have junk food diets that predispose them to childhood obesity and diabetes, more likely to suffer chronic health conditions and mental retardation, and more likely to lack positive role models for academic and job success. Thirty-five percent of single-parent families live in poverty, more than twice the national average. Teenagers in poor families are more likely than other teens to be single parents. Poor single parents attempting to join the workforce are seriously hampered by the need to find affordable quality health care and child care (which can consume more than 20 percent of a poor working mother's income).
Another way to look at poverty by the numbers is to see how total income is shared in the United States and whether the poor are closing the gap between themselves and the rest of society. Harrington noted that the increase in the share of personal income earned by the poorest one-fifth of the population between 1935 and 1945 was reversed between 1945 and 1958. The poor increased their share in the late 1960s, only to see these gains reversed once more, beginning in the 1980s.
In 1968, the Citizens Board of Inquiry Into Hunger and Malnutrition in America estimated that 14 million Americans were going hungry. Nearly thirty years later, the U.S. Department of Agriculture reported that nearly 35 million Americans were unable to supply their families with sufficient amounts of food. Other poverty markers include lack of education: The poverty rate for high school dropouts is three times the rate for those who have a high school diploma.
In 1960, the federal Commission on Rural Poverty report, The People Left Behind, found that nearly one-third of rural Americans lived in poverty. Their homes were substandard, their access to health care was rare, and their education—particularly among the children of black field workers—was minimal. By the late 1990s, the percentage of poor rural Americans declined to 16 percent, partly due to mechanization and closure of coal mines in Appalachia, which caused workers to migrate to urban areas. Electricity and plumbing are now standard, but isolated rural residents have fewer child care options and social and educational services than their urban peers.
The nearly 9 million rural poor—one-fifth of the poor population—are 55 percent white, 32 percent black, and 8 percent Hispanic. Migrant field workers from Mexico and Central America, who struggle to support families on substandard pay, generally live in crowded, makeshift housing. Native Americans are also hard hit by poverty; more than a quarter of the population lives below the poverty line. On reservations, the unemployment rate is three times the average for rest of the U.S. population, with high levels of alcoholism and tuberculosis as well.
While the stereotype of the poor is of a group that goes from cradle to grave without improving its lot, there is substantial movement in and out of poverty. About one-third of the poor in any given year will not be among the poor the following year. Only 12 percent of the poor re-main poor for five or more years. A national study in the 1990s found that more than half of these "poverty spells" lasted one year or less. The reasons people slide into poverty include divorce, job loss, and incomes that do not keep pace with the cost of living, especially in low-wage occupations.
Other common misconceptions about the poor are not borne out by the figures. While poverty rates are greater among blacks and Hispanics than among other ethnic groups, non-Hispanic whites comprise 48 percent of the poor, African Americans account for 22.1 percent, and Hispanics, 22 percent. Less than half (42 percent) of the poor live in central cities, and less than 25 percent live in inner-city ghettos. Surprisingly, more than one-third (36 percent) of the poor live in the suburbs.
Official poverty figures do not include the homeless (or people in institutions—jails, mental institutions, foster care, nursing homes), but the best estimates put the homeless population at anywhere from 500,000 to more than 800,000. The ranks of the homeless swelled when enlightened social policy of the 1970s—deinstitutionalizing the mentally ill with the goal of reintegrating them into society—fell afoul of budget cutbacks and lack of community follow-through in the 1980s.
There are many economic and social reasons poverty remains a major problem in the United States. As American companies have opened manufacturing plants abroad, where labor is cheaper and lower benefit standards are the norm, well-paying, of ten unionized, jobs for blue-collar workers have disappeared from American cities. Other jobs have moved to the car-dependent suburbs, out of reach to a population largely dependent on public transportation. Meanwhile, the expanding service sector is split between high-paying professional employment in business and technology, and low-wage service industry jobs (janitors, maids, fast-food and retail workers). While one person is employed in about 60 percent of poor families, minimum-wage jobs—of ten lacking health and other benefits—do not pay enough to keep families from poverty. With little or no accumulated wealth, the poor and their families have no savings to fall back on if they lose a job or have unanticipated expenses.
The Welfare System
The foundation of the welfare system and the government's only program of mass public assistance—the Aid to Families with Dependent Children (AFDC)—was established during the Great Depression as part of the 1935 Economic Security Act. The federal government paid half the cost of the program for the families of needy children and established broad guidelines. State governments picked up the rest of the cost, set payment levels, and administered the program. Food Stamps (Food and Nutritional Assistance) also originated during the New Deal, as a means of supplementing farm income with coupons that could be redeemed for food.
Social programs in the United States tend to operate in thirty-year cycles. The "rediscovery" of poverty after the Great Depression began with the publication of such influential books as John Kenneth Galbraith's The Affluent Society (1958) and Michael Harrington's The Other America: Poverty in the United States (1962), in which he argued that the poor—in particular, children, the elderly, and nonwhites, increasingly isolated in urban ghettos—had become invisible to the middle-class white majority. Although President John F. Kennedy's support of antipoverty proposals was cut short by his assassination, President Lyndon B. Johnson announced a "War on Poverty" in his 1964 inaugural speech. The success of Johnson's Great Society program—which included urban renewal and a broadscale fight against poverty, disease, and lack of access to education and housing—was greatly helped by relatively low unemployment and inflation, a federal budget surplus, the growing civil rights movement, and an increasing level of public confidence in sociological studies. Certain aspects of these social programs were enhanced in the 1970s, under the administration of President Richard Nixon.
In 1967, the Kerner Commission, appointed by President Johnson to study the causes of the riots that swept American inner cities that year, recommended that the federal government establish "uniform national standards" of welfare aid "at least as high as the annual 'poverty level' of income" (which was then $3,335 for an urban family of four). The commission also advised that states be required to participate in the Unemployed Parents program of the AFDC and that welfare mothers of young children no longer be required to work.
AFDC cash benefits were pegged to the number of children in the family, which caused some critics to believe that women on welfare were having more children to boost the amount of their checks, or separating from the father of their children in order to qualify for this benefit. (However, while the proportion of mother-only households increased during the years of the program, the real value of the payments decreased.) About one-third of AFDC recipients were found to remain in the program for six or more years. The Family Support Act of 1988 expanded AFDC benefits to families with two unemployed parents and required absent parents to pay child support. Eight years later, however, AFDC was eliminated and replaced by block grants to states, which administer their own programs.
President Kennedy revived the food stamp program in 1961; nine years later, Congress set a minimum benefit level for food stamps—which were now free—and offered them at a low cost to families over the poverty line; eligibility was broadened later in the 1970s. All funds for the program, administered by state welfare agencies, are provided by the federal government.
Under Medicaid, established in 1965, the federal government pays matching funds to states to cover a portion of medical expenses for low-income elderly, blind, and disabled persons, and for members of low-income families with dependent children. States have considerable latitude in setting eligibility, benefits, and payments to service providers. In 1963, a physician had never examined 20 percent of Americans below the poverty level; in 1970, this number fell to 8 percent. Prenatal visits by pregnant women increased dramatically, which contributed to an overall drop in infant mortality of 33 percent (50 percent in some poor areas) between 1965 and 1972.
Initiated in 1972, Supplemental Security Income (SSI) gives cash benefits to elderly, blind, and disabled persons in order to bring their income to federally established minimum levels. The program is administered by the Social Security Administration, with some benefits supplemented by individual states.
Beginning in the 1970s, Section 8 Low-Income Housing—administered by the Department of Housing and Urban Development (HUD)—initiated payments to private developers who set aside apartments at below-market rates for low-income families. Now known as the Housing Choice Voucher Program, it accounts for more than half of federal funds spent on housing for the poor; low-rent public housing accounts for another 25 percent. Only about 19 percent of the poor receive housing benefits, however, compared with about 40 percent receiving cash benefits from AFDC and SSI. The Earned Income Tax Credit (EITC), expanded under the administrations of Presidents Ronald Reagan, George Bush, and Bill Clinton, gives workers a tax break based on their earned income, adjusted gross income, and the number of children they have. In 2001, the income of recipients with no qualifying children had to be less than $10,710; with two or more qualifying children, the income limit was $32,121. This program was appealing to policymakers because it rewards workers (benefits increase with increased income), helps families with children, and works through the tax code, with no need for a separate bureaucracy.
Other social programs have increased the availability of services to the poor, including day care for children, health care, work-training, special programs for agricultural workers, and free legal assistance. While Social Security, instituted in 1935, is not based on need—it is based on the amount of Social Security tax paid on wages—this entitlement, with its substantial monthly payments, has played a huge role in keeping the elderly from poverty.
The Welfare Backlash
Beginning in the mid-1970s, the phenomenon of the "inner city" as a cauldron of joblessness, major crime, drug addiction, teenage pregnancy, and welfare dependency began to make headlines. For more than a decade, liberals had decried the low level of benefits welfare clients received while conservatives argued that welfare breeds dependency. Increasingly, welfare applicants were the offspring of welfare families. Tabloid stories of "welfare queens" using their government stipend to buy Cadillacs only inflamed the debate. Many agreed that welfare served to tide people over when they hit bottom but created a subclass of citizens with little dignity or self-respect.
During the Reagan administration, many social programs were reduced in scope or eliminated. The self-perpetuating nature of poverty noted by influential sociologist Oscar Lewis—who coined the phrase "the culture of poverty"—was seized upon by conservatives eager to end welfare. Lewis's sympathetic description of the way six-year-old slum children in South America had become so accustomed to a hopeless view of the world that they seem unlikely to be able to escape from poverty was intended to shift attention from individual poverty victims to the culture of impoverished communities. But conservatives used his views to argue that the children of ghetto families lack a work ethic. This sentiment was exacerbated during the 1980s by lack of income growth among middle-class wage earners, which made many leery of "handouts" going to a group of ten perceived as undeserving. (In fact, nearly half the income the poor received came from wages; welfare accounted for only 25 percent of the total.)
By the 1992 presidential campaign, Bill Clinton was promising to "end welfare as we know it." The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 officially ended the entitlement status of welfare and (as revised in 1997) denied assistance to newly arrived legal emigrants. The goal of this program was to reduce the welfare rolls, increase the number of working poor, and reduce out-of-wedlock births.
AFDC was replaced by Temporary Assistance for Needy Families (TANF), a $16.5 billion block grant program to the states to fund "welfare-to-work" programs. Unlike AFDC, which supplied federal matching funds of one to four dollars for every dollar in state appropriations, TANF's block grants are not tied to state expenditures. The new rules require that 50 percent of able-bodied adults receiving assistance be cut off after two years, and that 80 percent of each state's welfare recipients receive no more than five years of aid in a lifetime. Adults who do not have children under age six must work at least 30 hours per week to receive food stamps; unmarried teenage mothers receiving welfare benefits must attend school and live with an adult.
The burden on former welfare recipients has been significant. Finding and keeping even a temporary, low-paid job is generally a daunting undertaking for someone with a shaky or nonexistent job history, few skills, and little experience with the schedules and social skills working people take for granted. People new to the job market of ten must find the money for child care and transportation to work. Cut off from Medicaid benefits after one year and usually uninsured at work, this population has become even more vulnerable to health crises.
Changing Views of the Poor
The prevailing nineteenth-century view of the poor, whether religious or sectarian, rested on the assumption that weak moral fiber was to blame for their situation. In the twentieth century, thinking about poverty shifted to a greater emphasis on social and environmental factors. Robert Hunter, author of Poverty (1904), boldly declared that most of the poor "are bred of miserable and unjust social conditions. …" In Democracy and Social Ethics (1902), Jane Addams—cofounder of Hull House, which offered community services to the poor in Chicago—questioned the reformers' insistence on thrift and hard work as specific virtues for the poor, because the rich were not held to the same standards. The best way to ensure virtuous behavior on the part of the poor, she wrote, was to push for shorter hours, better wages (including a level of pay for women that would keep them from turning to prostitution), restrictions on child labor, and alternatives to the temptations of the saloon.
Yet overreliance on government handouts continued to be seen as a moral issue even in the midst of the Great Depression, when New Deal policies were created to promote economic recovery, not specifically to eliminate poverty. In 1935, President Franklin D. Roosevelt said, "Continued dependence upon relief induces a spiritual and moral disintegration fundamentally destructive to the national fiber."
In the 1960s, the reigning belief was that behavior associated with the ghetto was due not to ingrained cultural characteristics, but rather to segregation and a history of limited opportunities that—coupled with bitter personal experiences—made the prospect of a better life through hard work seem unrealistic. Urban field studies undertaken in the late 1960s were interpreted in light of this point of view.
Black ghettos were once home to middle-class as well as lower-class African Americans. As William Julius Wilson has pointed out, this social geography offered young people a range of role models and job contacts. By the 1970s, the growth of suburbs and civil rights legislation had enabled middle-class African Americans to move out of the inner city. Without an adequate tax base to fund good schools and other city services or middle-class incomes to support banks, shops, and other services, neighborhoods declined. High-density housing projects built in the 1950s to replace old slums tore apart the tight-knit fabric of communities and created an apathetic culture that became the festering center of unemployment, drug addiction, and crime. The inner-city population is also a particularly youthful one, and the fourteen-to twenty-five-year-old group is statistically more likely to commit crime, be welfare dependent, and have out-of-wedlock births.
One of the most controversial documents of the 1960s was "The Negro Family: The Case for National Action," by Daniel Patrick Moynihan, a white paper issued by the Department of Labor in 1965. Moynihan wrote that the instability of black families was a primary cause of poverty, and that welfare policies should encourage intact families and work as a means of integrating these families into the mainstream. Critics took Moynihan to task for blaming the poor rather than advocating societal change.
Another influential book, Regulating the Poor: The Functions of Public Welfare, by Frances Fox Piven and Richard A. Cloward (1971), proposed that welfare recipients should not be encouraged to work at a menial job just to bring in some money and avoid idleness—they should hold out for jobs that pay a living wage—and that welfare is necessary to the economic survival of women, whose jobs traditionally pay less than men's.
Charles Murray's book Losing Ground: American Social Policy, 1950–1980, published in 1984, was one of several prominent studies that decried liberal social policies for creating a welfare-dependent population during the 1970s. In Murray's view, the federal government should withdraw from the welfare business, and the poor—except for the truly deserving, whose needs would be served by private charity and local government—should take responsibility for their own lives. Murray's critics say the economic downturn was responsible for increased unemployment, which in turn made more people poor during the 1970s. Also to blame, they say, was a decline in real wages—the actual purchasing power of income—and the effect of baby boomers entering the job market. Critics maintain that the poverty rate would have risen even farther had Great Society programs not been in place.
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