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
  • Nicholas Eberstadt, a political economist and a demographer by training, is also a senior adviser to the National Bureau of Asian Research, a member of the visiting committee at the Harvard School of Public Health, and a member of the Global Leadership Council at the World Economic Forum. He researches and writes extensively on economic development, foreign aid, global health, demographics, and poverty. He is the author of numerous monographs and articles on North and South Korea, East Asia, and countries of the former Soviet Union. His books range from The End of North Korea (AEI Press, 1999) to The Poverty of the Poverty Rate (AEI Press, 2008).

     

  • Phone: 202.862.5825
    Email: eberstadt@aei.org
  • Assistant Info

    Name: Alex Coblin
    Phone: 202.419.5215
    Email: alex.coblin@aei.org

What's new on AEI

image Recovering from tax time blues
image 10 welfare reform lessons
image Let HHS nominee Sylvia Burwell explain Obamacare lie
image Why bold ideas backfire in politics
AEI on Facebook
Events Calendar
  • 14
    MON
  • 15
    TUE
  • 16
    WED
  • 17
    THU
  • 18
    FRI
Wednesday, April 16, 2014 | 10:00 a.m. – 11:00 a.m.
Calling treason by its name: A conversation with Liam Fox

Join us at AEI as the Right Honorable Liam Fox sits down with Marc Thiessen to discuss and debate whether America’s intelligence agencies have infringed on the personal privacy of US citizens.

Thursday, April 17, 2014 | 4:00 p.m. – 5:00 p.m.
The curmudgeon's guide to getting ahead

How can young people succeed in workplaces dominated by curmudgeons who are judging their every move? At this AEI book event, bestselling author and social scientist Charles Murray will offer indispensable advice for navigating the workplace, getting ahead, and living a fulfilling life.

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