SNAP as an Anti-Poverty Tool
Economic security programs like Social Security, food assistance, tax credits, and housing assistance play a crucial role in alleviating short-term poverty and improving long-term outcomes for children. These programs have significantly reduced the impact of poverty over the past 50 years, especially for children. To continue narrowing disparities, it is essential for the government to intensify efforts in reducing poverty, addressing discrimination, and fostering equal opportunities for everyone.
In 2017, economic security programs elevated 39 million individuals, including almost 9 million children, above the poverty line. Without government assistance income and taxes credits, 83 million people would fall below the poverty line. Including government assistance incomes and taxes credits in the estimate, the count of people below the poverty line reduces to 44 million. Government benefits and tax policies significantly reduced the poverty rate from 25.6 percent to 13.5 percent overall and from 25.5 percent to 13.6 percent among children.
Poverty Rates and Minority Populations
The report, “Economic Security Programs Reduce Overall Poverty, Racial and Ethnic Inequalities” which used the supplemental poverty measure for their data, highlighted that between 1970 and 2017, the overall poverty rate decreased for all groups. The overall poverty rate saw a more significant reduction for Black and Latino individuals—27 and 24 percentage points respectively, compared to 8 percentage points for white non-Latino individuals.
Despite these improvements, Black and Latino poverty rates remained higher than their white counterparts. Economic security programs have become more effective in alleviating the effects of poverty and racial disparities over this period. In 1970, government benefits and tax credits had a modest impact, but by 2017, they significantly lowered the poverty rates for all groups: 12 percentage points for white, 16 percentage points for Black, and 12 percentage points for Latino populations.
Poverty Rates and Children
Between 1970 and 2017, government programs significantly contributed to reducing child poverty and narrowing racial and ethnic disparities. The Black child poverty rate decreased by 35 percentage points, the Latino child poverty rate by 32 percentage points, and the white child poverty rate by 10 percentage points. The increasing effectiveness of government assistance, lifting families’ incomes above the poverty line, was a key factor in more than half of these declines. Despite these improvements, white children still experience considerably lower poverty rates than Black and Latino children.
Numerous studies indicate that assistance programs such as nutrition aid and health coverage have lasting positive effects on children’s long-term development. Improved educational outcomes, for instance, are attributed, in part, to investments in nutrition and healthcare made during childhood.
The Problem
The present economy differs significantly from that in 2017, and indications show that the pandemic exacerbated existing racial and ethnic economic disparities. Between February and December 2020, jobs in low-paying industries, predominantly occupied by people of color, declined more than twice as much as those in medium-wage industries and nearly four times as much as in high-wage industries. Women of color, in particular, have faced substantial losses.
A Call for Action: Policy Change to Reduce Poverty
Expanding effective policies such as housing vouchers, tax credits, and food assistance can significantly reduce racial disparities in poverty and access to opportunity. Economic security programs reduce gaps in child poverty by race and ethnicity by nearly half. Before counting government assistance and taxes, the poverty rate for Black children in 2017 was 26 percentage points higher than for white children. For Latino children, it was 21 percentage points higher. Once government assistance and tax credits are accounted for, the poverty rate for Black children was 13 percentage points higher than for white children. For Latino children, it was 12 percentage points higher.
Recommendations from a National Academy of Sciences (NAS) panel propose policy packages that could halve child poverty rates and narrow racial poverty gaps. A current housing voucher proposal and tax credit suggestions could further reduce racial and ethnic poverty gaps. An NAS expert panel highlights the long-term benefits of reducing child poverty, including improved health, better education outcomes, and increased earnings in adulthood, as supported by research on economic security programs.
Stronger income assistance correlates with positive outcomes such as healthier births, lower maternal stress, improved childhood nutrition, higher academic achievements, lower substance use, increased high school graduation rates, and higher college entry rates.
Conclusion
In addressing the persistent racial disparities in poverty and access to opportunity, there is both a challenge and a call for action. As economic security programs have proven effective in lifting millions above the poverty line, the opportunity to make substantial progress through policy expansion is within reach. The Biden Administration’s proposed relief measures, coupled with the recommendations from the National Academy of Sciences, offer concrete pathways to cut child poverty and reduce racial and ethnic disparities.
Housing vouchers, tax credits, and food assistance emerge as key tools in narrowing the racial poverty gaps. President Biden’s commitment to expanding housing vouchers and Vice President Harris’ support for tax credit proposals present actionable steps toward a more equitable future. The NAS expert panel underlines the long-term benefits of reducing child poverty, emphasizing improved health, enhanced educational outcomes, and increased earnings for the next generation.
As we confront the economic disparities exacerbated by the pandemic, the momentum for change is palpable. Policymakers and advocates alike have the opportunity to champion policies that not only address immediate needs but also lay the groundwork for a more just and inclusive society. By rallying around effective initiatives, we can pave the way for a future where every child has a fair chance to thrive, regardless of their racial or ethnic background. The call for action is now, and the promise of a brighter, more equitable tomorrow awaits our collective commitment.
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