2021 Had Lowest-Ever Supplemental Poverty Rate, Thanks to Stimulus Provisions

According to a Census Bureau report, poverty rates fell to a record low by certain measures in 2021. This was due in large part, the Census Bureau said, in a Tuesday report.

The Census Bureau foundAccording to the Supplemental Poverty Measure, the poverty rate was at an all time low of 7.8 percent in 2013 and the child poverty rate was at a record low of 4.5 percent.

The Supplemental Poverty Measure takes a more holistic view of poverty, taking into account aid provided by public programs like Social Security and costs like food, shelter and utilities, rather than just looking at income and food costs like the Census’s traditional poverty measure. The supplemental poverty rate is a result of increased costs. is typically higherNevertheless, it was lower than the official poverty rates and fell below the official poverty rates for the second consecutive year.

Social Security and refundable tax credits such as the expanded were the programs that led to the greatest reductions in poverty. Child tax creditThe agency also found that the stimulus checks and 26 million people were lifted out of poverty by these measures last year. The expanded child credit, which Expired at the end 20215.3 Million people were lifted out of poverty by the organization alone.

These findings are a stunning demonstration of effectiveness of the stimulus package measures.

The Census measurements show that the aid helped to keep millions of people from poverty. They also seem to have prevented losses that were expected from economic instability. unemployment ratesLast year. Indeed, the drastic reductions in poverty rates came despiteThe fact that the median household income is $18,080 remained statistically unchangedAdjusted for inflation starting 2020

“This has been a large-scale experiment that shows that child poverty is a solvable problem in the United States, and that poverty more broadly is,” Alix Gould-Werth, director of family economic security policy for the Washington Center for Equitable Growth, told The New York Times. “So in order to see these changes last, we really need sustained public investment.”

The Agriculture Department similarly found earlier this month that child food insecurity declined to an over two-decade low last year, thanks in large part to expansions in the U.S.’s social safety net.

While the stimulus measures had a huge impact on reducing poverty and child-poverty, the conservatives in Congress fought back. lessenOr EliminateThe direct aid was provided in the negotiations for the bills. Progressive lawmakers fought for the expansion of the child tax credit. Continued advocacyThe program was still available after it expired. effectively dead due to Republicans’ and Sen. Joe Manchin’s (D-West Virginia) opposition.

Republicans argue that continuing programs like the expanded child tax credit would provide aid to those who don’t truly need it, or that it would cost the government too much money.

These arguments are false. Census analysis has shown that the program aids millions of children who would otherwise be in poverty. An investmentThe government would be able to pay 10-fold the cost of a program similar to the one that was implemented, thereby dramatically increasing the quality of education and health outcomes for both parents and children.

Progressives on the other side argue that A policy choice is povertyIt is not only morally right to reduce poverty, but it is also economically sound to raise low income people. help rebuildThe middle class.