Home
/
RELIGION & LIBERTY ONLINE
/
Four caveats about the Official Poverty Measure
Four caveats about the Official Poverty Measure
Oct 14, 2026 11:31 PM

The U.S. Census Bureau released the official poverty measure (OPM) yesterday. Although the numbers were encouraging, there are at least four caveats that everyone who reads these statistics should keep in mind. Without making these adjustments, we may have an inaccurate picture of poverty in the U.S.

1. The OPM does not include the effects of government welfare programs. As the Census Bureauexplains, “The official poverty definition uses money e before taxes and does not include capital gains or noncash benefits (such as public housing, Medicaid, and food stamps).” Matt Weidinger at AEInoted:

Crucially, the current official [poverty] measure ignores a growing share of spending devoted to reducing the plight of the poor, effectively overstating poverty in the US.

If not addressed, the disconnect between the real conditions facing e households and what is reported in the OPM will only continue to grow—possibly dramatically—given calls by Democratic presidential candidates for rapid increases in benefits that may not be counted under the OPM. Unless the OPM is adjusted, these new benefit proposals would not reduce “official” poverty—or they could even result in its apparent increase if the new, uncounted benefits discourage work among e households and thus reduce earned e counted under the OPM.

TheSupplemental Poverty Measure (SPM), which began publication in 2011, tracks these data.

2. Americans likely underreport their e. Experts have long noted that the e reported on thesurveysthe bureau uses to calculate U.S. poverty “appears to be substantially underreported, especially for categories of e important for those with few resources, and the extent of underreporting has worsened over time.”

3. These data are a snapshot of current poverty. They do not track the rate of persistent poverty, year-on-year. That rate would be significantly lower, due to America’s high level of economic and social mobility – but as it is, we don’t know how much lower.

4. These data do not figure in taxes. CBS Newsreported, “One caveat is that the e figures reflect pre-tax e, which means that any benefits from the Tax Cuts and Jobs Act, signed into law by President Donald Trump at the end of 2017, wouldn’t be reflected in the data.” Just as people benefit from the added consumption allowed by social welfare programs, they are penalized by confiscatory tax rates.

For Christians bat poverty, we must first measure it accurately. The best proposal would shift to a consumption-based measure. Barring that, this system is the best one available.

domain.)

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Listen: Rev. Ben Johnson on seizing college endowments, and creative cooperation in an age of COVID-19
A growing number of conservatives have said the behavior of certain Ivy League colleges demands that the federal government seize their endowments. But will confiscating this source of nonprofit funds give the government a legal justification to do the same to tax-exempt churches? This was one of the main topics on my weekly Thursday interview on “Mornings with Carmen LaBerge,” which is nationally syndicated by Faith Radio Network. The program also discussed a recent Acton Powerblog article about encouraging scientific...
Gavin Newsom, Gretchen Whitmer and the limits of science
There have been many responses to the COVID-19 pandemic in all spheres of life from businesses, educational institutions, churches, and within close intimate human relationships. Most of these responses have arisen spontaneously as people’s duties to protect themselves and others, both individuals munities, have e plain to them. Government at all levels has also acted, imposing a series of sometimes necessary but often arbitrary and capricious restrictions on economic and social life. Protests from citizens concerned with the economic and...
The great price of America’s great lockdown
One reason why economists are viewed as modern-day Cassandras is that they tell us many things we don’t want to hear. Economics points relentlessly to the costs and benefits associated with particular decisions about alternative uses of scarce resources. Not everyone likes to be reminded of the trade-offs and unintended consequences that flow from different choices. Some of those side-effects touch upon political questions. How much liberty are we prepared to exchange for some assurance of security? Are we willing...
Many prisoners released over COVID-19 have reoffended. Here are 3 lessons we can learn from that.
On Friday at The Stream, I wrote about the policy of releasing prisoners from penitentiaries in order to slow the spread of the coronavirus. Perhaps hundreds of those who have been released mitted new pounding the tragedies the American people must suffer during this global pandemic. In New York state alone, 50 freed inmates found themselves back in jail within three weeks. Last week at the Cato Institute, Clark Neily advocated broader release of prisoners and a fundamental rethinking of...
Don’t seize Harvard’s endowment. Cut off federal funding.
William F. Buckley Jr. frequently told the joke about the doctor who asked his patient what he planned to do now that he had only a few months left to live. The patient said he would join the Communist Party: “Better one of them should go than one of us.” Conservatives often have the right diagnosis of the problem but the wrong solution. One such case is the proposal for the federal government to tax, or seize, the endowments of...
The persecution of Jimmy Lai
It’s no secret that China isn’t exactly flavor of the month throughout the world right now. Before the court of global opinion, the reputation of the Chinese regime is about as low as it can go. That, however, does not appear to be deterring China’s Communist leadership from continuing to behave in ways which have rightfully drawn upon it the odium of the world. There are of course plenty of people in China who disapprove of their government’s actions. The...
In a pandemic, the poor need global markets more than ever
The coronavirus global pandemic has scrambled everything from economic policy to geopolitics. This disruption has created space for many to reconsider the world’s pre-coronavirus arrangements. Trade and globalization will undoubtedly be on the menu for renegotiation. As the world again considers the extent to which it wants to be interconnected, we must continue to forge a path that connects as many people to markets as possible. It is this arrangement, and this arrangement alone, that has led to the greatest...
Acton Line podcast: Rev. Robert Sirico on the church’s response to COVID-19
As the United States continues to wrestle with the fallout of COVID-19, many people are falling back on their faith and the church for peace. Many churches have decided to hold services online, and local governments have also stepped in and put parameters around church attendance to help mitigate the spread of the virus. Some actions taken by local governments have been appropriate, but some others leave us wondering if the government has overstepped. How can we tell the difference...
La situación del coronavirus en América Latina
Traducido por Joshua Gregor Este artículo se publicó originalmente en . Hasta ahora el coronavirus ha causado menos caos en América Latina que en Europa y los Estados Unidos. Pero incluso si el calor del verano ayuda a erradicar el virus en el hemisferio norte, será casi imposible que el movimiento de personas entre Norteamérica y Sudamérica vuelva a la normalidad si los países latinoamericanos no logran detener el virus. La incertidumbre más grande en Norteamérica es lo qué pasará...
Rev. Sirico: The dangers of accepting government money, even in a crisis
Rev. Robert Sirico, president and co-founder of the Acton Institute, reflects on the ways government programs and government money can be corrupting, even when those programs may seem necessary during a crisis. Rev. Sirico shares why the Acton Institute will not be applying for the Paycheck Protection Program and how other businesses and non-profits should weigh the benefits and risks of government relief programs like this. ...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved