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The Future of the U.S. Poverty Measure: What to Expect from Congress

The Future of the U.S. Poverty Measure: What to Expect from Congress. Indivar Dutta-Gupta indivar.dutta-gupta@mail.house.gov Democratic Professional Staff, Committee on Ways and Means*.

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The Future of the U.S. Poverty Measure: What to Expect from Congress

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  1. The Future of the U.S. Poverty Measure: What to Expect from Congress Indivar Dutta-Guptaindivar.dutta-gupta@mail.house.govDemocratic Professional Staff, Committee on Ways and Means* Presented at APPAM, Census Bureau, & U of Maryland Conference on European Measures of Income, Poverty, and Social Exclusion Recent Developments and Lessons for U.S. Poverty Measurement held on November 4, 2009, at the Washington Marriott in Washington, DC *The views expressed here are those of the presenter and do not necessarily reflect those of any Congressperson or Senator.

  2. Overview

  3. Poverty is costly and of concern to policymakers • Poverty indicates how widely shared prosperity is in the economy and who falls from or struggles to join the middle class • Poverty is a key benchmark for targeting resources

  4. The threshold has less and less meaning • The resource definition is less and less appropriate, wrongly indicating the failure of substantial government spending • The threshold does not adequately account for important variations in needs • The measure is not easily updated

  5. Without Congressional involvement, measurement has not been improved • Other wealthy countries have moved forward • Poverty Measurement Improvement Act by former Rep. Jerry Weller (HR 3243; 110th Congress) • NAS-based measure: Measuring American Poverty Act by Rep. Jim McDermott (HR 6941; 110th Congress) and Sen. Chris Dodd (S 3636; 110th Congress)

  6. “Modern Poverty Measure” • “Official” measure “Traditional” measure • No Impact on Eligibility or Distribution of Funds • Shift Authority to Statistical Agencies • “Decent Living Standard” Measure • “Medical Risk Measure” • Periodic Updates

  7. Addresses major concerns • Consistent with public opinion • Balanced, consensus-based approach builds on 14 years of research and analysis • Makes some judgments agencies may be less willing to make; leaves others to agencies

  8. Provides meaningful and more lasting threshold & income definition • Provides public, policymakers, and researchers with a improved understanding of the anti-poverty effect of many programs and policies • Common modern poverty measure focuses attention, while proposal develops additional, important measures of well-being

  9. Census Bureau produced NAS-based measures more quickly than before • Census Bureau proposes to add relevant questions to CPS • Building support, educating officials and staff, researchers and advocates • Engagement with Administration

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