Tuesday, April 8, 2014

Catherine Rampell: The safety net catches the middle class more than the poor - The Washington Post

 

the past few decades, the federal social safety net has gotten lusher and, on its face, more generous. Spending on the major safety-net programs nearly quadrupled between 1970 and 2010, and that’s after adjusting for inflation and population growth, according to calculations by Robert A. Moffitt, an economics professor at Johns Hopkins University. He included both “means-tested” programs that are explicitly intended to combat poverty (such as food stamps, Medicaid, housing aid, Head Start, Temporary Assistance for Needy Families and the earned-income tax credit) and social insurance programs (Medicare, Social Security, disability insurance, workers’ compensation and unemployment insurance).

There have been, however, winners and losers during that massive expansion.

the biggest increases in spending have gone to those who were middle class or hovering around the poverty line. Meanwhile, Americans in deep poverty — that is, with household earnings of less than 50 percent of the official poverty line — saw no change in their benefits in the decade leading up to the housing bubble. In fact, if you strip out Medicare and Medicaid, federal social spending on those in extreme poverty fell between 1993 and 2004.

Read the entire article by clicking on the following:  Catherine Rampell: The safety net catches the middle class more than the poor - The Washington Post