Poverty Has Returned to the Public Agenda

by Jack Kemp and George Mitchell

Poverty is back. Or to be more accurate, it never left.

For almost a generation, talking about the problems of poverty in the United States has been political poison. Neither major political party paid enough attention to the issue.

Now, in this election year, the remaining presidential candidates have all said fighting poverty will be a priority in his or her administration. Both Senators Hillary Clinton and Barack Obama have pledged to appoint a poverty point-person and each supports setting a numerical goal and timeline for reducing poverty. Senator John McCain recently pledged to make “eradication of poverty a top priority.” And the issue has figured prominently in media coverage of the campaign. Last year, stories in the media about poverty and politics increased 145 percent over the previous election cycle.

The changing political winds are also evident at the state level. A new report released by the Center for Law and Social Policy and the foundation-led initiative, Spotlight on Poverty and Opportunity, found that a dozen states have taken significant steps to focus more attention on poverty, with ten states acting since 2006. The trend seems to be gaining strength; at least four more states are considering proposals to create poverty commissions.

The states are taking a variety of approaches. Connecticut, Delaware and Vermont have established dates for cutting child poverty by 50 percent. In Colorado and Iowa, bipartisan legislative caucuses were formed to push for new initiatives, while in Michigan a statewide summit has been scheduled. Eight states have formed commissions to make recommendations for action.

It is evident from all this activity that the nation has reached a moment of opportunity. Fighting poverty has moved from a secondary political issue to a cause with increasing bipartisan support. It is critical that we seize the moment and take strong action at the federal level to dramatically reduce poverty in this country.

What has caused the change? A number of factors have focused more attention on poverty at this time:

• The gap between rich and poor has grown worrisome to many of us, including those charged with national economic policy. Federal Reserve Board Chairman Ben Bernanke has warned that the unchecked growth in income inequality could threaten the nation’s economic vitality.

• A cherished piece of the American Dream – the notion that individuals have the opportunity to rise beyond their parent’s economic status – is not standing up to scrutiny. A study by the Economic Mobility Project finds that 42 percent of children born to parents in the bottom fifth of income distribution remain in the bottom, and 39 percent born to parents in the top fifth remain at the top. Steps must be taken to strengthen our economy and expand opportunities for jobs, ownership and affordable housing.

• One-third of poor households with children include a full-time, year-round worker. Three million full-time workers live below the poverty line, therefore, streamlining, broadening, and expanding the Earned Income Tax Credit (EITC) is essential.
  

• The high cost of medical care is straining families. One state found that one-fourth of its foster care caseload resulted when unaffordable bills for child mental-health services left parents with no choice but to place their children in the foster care system, where they would be covered by Medicaid.

• During periods of very slow growth and recession, more lives are touched by economic insecurity, and more households that were near the margins tumble into poverty. Depending on how severe the current recession proves to be, it could submerge from 5 to 10 million more Americans below the poverty line.

The greater focus on poverty has been accompanied by an increasing emphasis on solutions. The Center for American Progress found that poverty could be reduced by 26 percent through such straightforward measures as raising the minimum wage, expanding the EITC and Child Tax Credit and increasing the availability of child care assistance for low-income families. The price for such efforts would be about $90 billion, compared with the estimated $500 billion cost to the nation each year from childhood poverty. More needs to be done to expand access to capital, access to quality education and creating greater access to job opportunities in the private sector.

There is a growing perception that compassion for our fellow citizens is not only a moral imperative but essential to strengthening our nation. We need to make the most of this window of opportunity. The public is sympathetic; the states are leading pro-actively; and the presidential candidates are saying the right things. In January 2009, when a new President and a new Congress take over, we need to be certain that they remember their promises and take decisive steps to sharply reduce poverty in this land of opportunity.