Poverty in 2001
Threshold ($
income annually)
$9,214
$14,269
$17,960
Poverty line
Entitlement
Programs:
.
Cash Programs
TANF: Temporary Aid to Needy Families
In-Kind Programs
Federal
Spending
Dollars (Billions)
$32
Percentage of
Federal Spending
TANF
$26
1.23
EITC
$35
1.66
$93
4.41
$155
7.36
$24
1.14
$4
0.52
$11
9.21
$287
13.62
SSI
1.52
10
L
I
E3
N3
N1
N2
E1
Subsidy
E2
U1
U3
U2
H1
H3
A
L'
H2
Housing Services per Month
B
12
200
S = MSC
S
D = MSB
Q1
Q2
14
E1
25 = P*
A
Excess Burden
MBL
E2
Q*
QG
Medical Office Visits per Year
15
Price (Dollars)
S = MSC
E2
35
E1
25
DM'
DM = MSB
DO
DL
0 QLQO'
QO QI QG Q2
Medical Office Visits per Year
17
Subsidizing Food
Food Stamps: subsidies that allow
recipients particular allotments of
vouchers to buy food, but recipients
may supplement the subsidy with their
own cash. It is illegal to sell food
stamps, though it may be in the
recipients interests to do so.
18
B
F
M2
M1
L
I
M1
E2
E1
E2
C
E1
U3
U2
U1
U2
U1
0 QF QF1 QF2
A'
0 QF2 QF
A'
QF*
Food per Month
19
20
U3
C
A
U1
E3
U2
G
E2
E1
D Transfer
B Payment
L1
L2
24
21
E2 U
2
E1
U1
D
Maximum
Daily
Transfer
B
L*
L1
L2
24
22
Empirical Evidence
23
T = I G tN I E
Where
IG = Income guarantee
tN = take back rate
IE = earned income
T = Transfer
24
Break-Even Income
0 = I G tN I B
IB = IG/tN
25
Transfer T = IG tNIE
Disposable Income ID
5,000
5,000
1,000
5,500
2,000
6,000
3,000
6,500
4,000
7,000
5,000
7,500
6,000
8,000
7,000
8,500
8,000
9,000
9,000
9,500
10,000
10,000
26
EITC
EITC
$0
$810
$1,610
$2,410
$3,210
$4,140
$3,823
$2,770
$0
28
29
2-years at a time
If states meet certain goals, they can waive this rule for up to 20%
of their caseloads.
Work and Training:
If recipients have children over five and the parents refuse to work,
families can be denied aid and children may be placed in foster care.
30
31
Fourth Highest
Fifth
Fifth
1947
5.0
11.9
17.0
23.1
43.0
1967
4.0
11.1
17.6
24.6
42.7
1976
4.3
10.4
17.0
24.7
43.6
1987
3.8
9.6
16.1
23.3
46.7
1997
3.6
8.9
15.0
22.2
49.4
2001
3.5
8.7
14.6
23.0
50.1
32