The Poverty of "The Poverty Rate"
Measure and Mismeasure of Want in Modern America

  • Title:

    The Poverty of "The Poverty Rate"
  • Format:

    Paperback
  • Paperback Price:

    20.00
  • Paperback ISBN:

    978-0-8447-4246-5
  • Paperback Dimensions:

    6'' x 9''
  • 190 Paperback pages
  • Buy the Book

Click here to view the full book as an Adobe PDF.

Click here to purchase this book on Amazon.

Since its inception in 1965, America's official poverty rate (OPR) has been the single most important statistic used by policymakers and concerned citizens to evaluate success or failure in the nation's ongoing struggle against material need. But in a critical new examination of this widely followed measure, Nicholas Eberstadt charges that the OPR is, in reality, "a broken compass"—a flawed index generating increasingly misleading numbers about poverty in the United States.

The OPR was originally intended to track an absolute level of poverty over time by comparing a family's reported pretax income against a corresponding poverty threshold. But for the past three decades, the OPR has reported trends that are jarringly inconsistent with other statistical indicators of material deprivation. What is the reason for this curious discrepancy? Eberstadt suggests that the OPR's most serious problem is its implicit assumption that poor families will spend no more than their reported annual incomes—in other words, that their income levels are an accurate proxy for their consumption levels. In the decades since the OPR was unveiled, the disparity between reported income and expenditures has progressively widened, making income an ever less reliable predictor of consumption patterns—and, consequently, living standards—for America's poorer families.

In The Poverty of "The Poverty Rate," Eberstadt contends that the defects of the current poverty rate are not only severe but irremediable. Income-based measures cannot offer a faithful portrait of consumption patterns or material well-being in the United States. Central though the OPR has become to antipoverty policy, this "untrustworthy yardstick" should be discarded and replaced by more accurate measures of deprivation.

Nicholas Eberstadt is the Henry Wendt Scholar in Political Economy at the American Enterprise Institute.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Nicholas
Eberstadt

What's new on AEI

Making Ryan's tax plan smarter
image The teacher evaluation confronts the future
image How to reform the US immigration system
image Inversion hysteria
AEI on Facebook
Events Calendar
  • 01
    MON
  • 02
    TUE
  • 03
    WED
  • 04
    THU
  • 05
    FRI
Wednesday, September 03, 2014 | 9:00 a.m. – 10:30 a.m.
From anarchy to Augustus: Lessons on dealing with disorder, from Rome’s first emperor

We invite you to join us for two panel discussions on how Augustus created order from chaos 2,000 years ago, and what makes for durable domestic and international political systems in the 21st century.

Event Registration is Closed
Wednesday, September 03, 2014 | 12:00 p.m. – 1:30 p.m.
Multiple choice: Expanding opportunity through innovation in K–12 education

Please join us for a book launch event and panel discussion about how a marketplace of education options can help today's students succeed in tomorrow's economy. Attendees will receive a complimentary copy of the featured book.

Thursday, September 04, 2014 | 12:00 p.m. – 1:30 p.m.
How conservatives can save the safety net

Please join us for a luncheon event in which our panel will discuss what conservatives can learn from how liberals talk and think about the safety net and where free-market economics, federalism, and social responsibility intersect to lift people out of poverty.

No events scheduled this day.
No events scheduled this day.
No events scheduled today.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.