F*ck The Middle Class. OK, I Said It.

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How much money would it take to Eliminate Poverty in America? 
Matt Brueing writes:

The sheer scale of poverty in the U.S. is so massive that it can seem as if eliminating or dramatically reducing it would be nearly impossible. After all, 46 million people is a lot of people. But in reality, if we stick to the official poverty line, the amount of money standing in the way of poverty eradication is much lower than people realize.

In its annual poverty report, the Census Bureau includes a table that few take note of which actually details by how much families are below the poverty line. A little multiplication and addition later, and the magic number pops out. In 2012, the number was $175.3 billion. That is how many dollars it would take to bring every person in the United States up to the poverty line. In 2012, that number was just 1.08 percent of the nation’s gross domestic product (GDP), which is to say the overall size of the economy.

To be sure, you probably don’t want to run a program that hunts out every family below the poverty line and brings them right up to it. Such a program would effectively involve imposing a 100 percent marginal tax rate for all income made below the poverty line. But, things like strategically expanding the Child Tax Credit, the Earned Income Tax Credit, SNAP, and related programs could make enormous strides toward poverty reduction. Implementing a mild basic income and a negative income tax would also help a great deal. The policy solutions for dramatically cutting poverty exist, they are used by countries elsewhere, and they could be used here, if we chose to do so.

It might be helpful to put the $175.3 billion magic number in perspective. In 2012, this number was just one-fourth of the $700 billion the federal government spent on the military. When you start hunting through the submerged spending we do through the tax code, it takes you no time to find enough tax expenditures geared toward the affluent to get to that number as well. The utterly ridiculous tax expenditures directed toward the disproportionately affluent class of people called homeowners—mortgage interest deduction, property tax deduction, exclusion of capital gains on residences—by themselves sum to $115.3 billion in 2012. Throw in the $117.3 billion in tax expenditures used to subsidize employer-based health care (also a disproportionate sop to the rich), and you’ve already eclipsed the magic number.

Eradicating or dramatically cutting poverty is not the deeply complicated intractable problem people make it out to be. The dollars we are talking about are minuscule up against the size of our economy. We have poverty because we choose to have it.



  1. Well said. We have poverty because we choose to have it. Just as Carlin stated it. I grew up poor, White trash. I moved 35 times before I was 18 years old. I know poverty from a fringe White perspective and I know that for the minorities around me, it was much, oh so much worse. In the early 60s I used to see promos on TV that talked about eradicating poverty in “our” lifetime. I now realize that that will never happen. Again, kudos to Carlin for explaining it well.

    I’ve also lived in Mexico (4 years) and Venezuela (6 months) and saw their version of poverty. Our poverty looks very chaotic in comparison. They have poverty that has been in the family for centuries. They have learned to cope within this framework and demonstrate a cohesion inside the family that is almost nonexistent in the US. In the US everyone has to fend for themselves and the homeless and dirt poor have little solace within society. In Latin America, people have a greater grasp on reality and have the great advantage that their family, parents, siblings, relatives and close friends, are always there to lend a hand when one is needed.

    They understand what is required to “take care of one’s own.” In the US, were are totally clueless. It is indeed a sad commentary on the state of affairs of the greatest economic powerhouse in the world. It is the same thing as someone telling a poor person, “You have to pull yourself up by your bootstraps,” without ever recognizing that that person is shoeless!

  2. I saw the author of Dollarocracy last night, and he argues that we may be on verge of another burst of progressive activism. He stressed that we can’t predict the future, but what we’re doing now is unsustainable. Eventually, people will rise up. The comfort of the “middle” class is becoming rather uncomfortable.

    Dennis, you keep doing your thing; we’ll keep sharing it.

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