Briefing Papers Number 6, February 2009 | Page 4

percent. Official U.S. poverty rates are calculated by multiplying an average low-cost food basket by three and then adjusting for household size. But the assumption that poor families spend one-third of their household budget on food has routinely been proven wrong by consumer-spending data. No other cou ntry measures poverty this way; in fact, most countries in the LIS use at least 50 percent of median income.8 All LIS countries spend government resources on social programs to lower poverty rates. The United States spends a significantly lower portion of GDP per capita than other LIS countries, again except for Mexico. “Simply put,” explains Timothy Smeeding, a U.S. researcher working on the LIS, “the United States does not spend enough to make up for low levels of pay, and so we end up with a relatively higher poverty rate than do other nations.”9 Goals to Reduce Poverty Richard Lord U.S. voters want the government to do more to fight hunger and poverty. Moreover, they say they would approve of increased government spending to solve these problems. Those are some of the findings in surveys of voters in the last year conducted by Spotlight on Poverty and Opportunity and the Alliance to End Hunger.10 Some policymakers have responded to this public concern. In New York City, Mayor Michael Bloomberg has launched an ambitious poverty-reduction campaign, receiving strong support from residents. In addition to adding several new antipoverty programs, Bloomberg has scrapped the federal poverty measure, using an alternative developed by the National Academy of Sciences in the 1990s. The poverty rate in the city increased when the new measure was applied, but now it reflects something much closer to the real cost of living in New York. While some critics have faulted Bloomberg for “increasing poverty”—though only by making the statistics match the daily reality—common sense says you can’t adequately respond to a problem until you know the extent of it. The New York City anti-poverty initiative is one of several that have been launched across the country. A total of 15 states 4  Briefing Paper, February 2009 have embarked on poverty-reduction plans and three have passed laws that set poverty-reduction goals. Connecticut was the first state to do so, enacting a law in 2004 that required reducing child poverty by 50 percent in 10 years. The poverty rate in Connecticut is 7.9 percent, the second lowest in the country, and the state child poverty rate of 11 percent is well below the national rate of 18 percent.11 But state-level data hides some staggering inequalities, such as in Hartford, New Haven, and Bridgeport, where poverty rates are three and four times higher than in the rest of the state. Setting a goal is the easy part. Building coalitions to gain consensus for lasting changes at the policy level is another matter. In Connecticut, it was not until 2007 that the Child Poverty Prevention and Reduction Council delivered a blueprint for action. A Republican governor and a Democrat-controlled legislature have clashed over strategy. At the national level, pressure is increasing for the federal government to follow the lead of New York City and Connecticut and other states. In the 2008 Hunger Report, Working Harder for Working Families, Bread for the World Institute proposed setting a goal to reduce domestic poverty and hunger. Working Harder for Working Families includes the following main recommendations: • Establish a poverty-reduction goal and timeline to achieve it. • Make sure all jobs provide a standard of living above the poverty line. • Improve federal work-support programs like tax credits, nutrition assistance, and health care for all low-income families. • Increase ways for families to save and build assets so that they may become economically self-sufficient. The report focused on working families because one in four U.S. workers has a job that does not pay enough to raise a family of four out of poverty.12 A lasting solution to hunger, like a solution to poverty, means a job that pays a living wage, provides affordable health insurance, and offers other forms of social insurance, such as paid leave and a savings plan for retirement. This should be something a wealthy nation like the United States can ensure for all workers. U.S. policymakers have been loath to increase social spending to reduce poverty rates, but they would do well to pay attention to what has occurred in the United Kingdom. In 1997, the Labor government launched an initiative to eliminate child poverty by 2020. When the campaign began, the child poverty rate in the United Kingdom was roughly equal to the U.S. rate. Since then, the child poverty rate has fallen by a third.13