Beyond the Myths: A Clearer Path to Poverty Alleviation in America
In “Beyond the Myths: A Clearer Path to Poverty Alleviation in America,” Melissa S. Kearney and James Sullivan reassess poverty trends and policy responses in the United States. They document that, contrary to common perceptions, poverty has declined substantially over the past four decades and that anti-poverty programs have played a central role in this progress.
The authors argue that framing poverty reduction as a matter of simply transferring cash overlooks the complex and multifaceted challenges faced by those living in poverty. Sustained progress requires investing in people’s capacity to succeed, with particular attention to four areas: developing skills, strengthening families, removing barriers to individual flourishing, and expanding upward mobility for children born into disadvantaged circumstances.
Kearney and Sullivan outline three key common misconceptions about poverty in the United States.
Misconception 1: The US has made little progress at reducing poverty.
For many years, policymakers and pundits have claimed that poverty has not fallen. However, Kearney and Sullivan show that, when measured accurately, poverty has fallen dramatically since the 1980s—by roughly half according to income-based measures and by more than 80 percent using consumption-based measures. Broader indicators of material well-being, including housing quality and access to amenities, tell the same story: poverty has declined substantially over the past four decades.
Misconception 2: Anti-poverty programs are ineffective.
Anti-poverty programs have been central to poverty reduction over the past four decades. Comparisons of pre- and post-tax incomes of low-income households show that tax credits and in-kind transfers directly reduce the poverty rate by roughly two-thirds—from 17.4 percent before taxes and transfers in 2023 to 6.1 percent after them. Beyond their immediate impact, programs such as the Earned Income Tax Credit, SNAP, and Medicaid yield long-term benefits for children, improving health, educational attainment, and adult earnings, underscoring the importance of maintaining these safety nets alongside policies that promote long-term self-sufficiency.
Misconception 3: Just giving people cash will solve poverty.
The claim that America could eliminate poverty simply by giving people money conceives of this problem too narrowly as a financial one, when in reality the challenge runs much deeper. Research on guaranteed-income programs shows that unconditional payments rarely lead to greater economic independence or investments in education and skills, as persistent poverty reflects structural barriers that money alone cannot resolve. True poverty alleviation requires addressing underlying issues—such as education, health, family stability, and barriers to work—through long-term investments in people and families.
Guided by facts and evidence, Kearney and Sullivan propose an anti-poverty agenda for the country focused on making long-term investments in people and families. They propose four specific areas of investment.
An anti-poverty agenda: Alleviating poverty requires investing in people
- Advance skills and education. Expanding access to high quality education and training is one of the most reliable ways to reduce poverty and promote long-term economic security. Comprehensive student-support programs, flexible high schools for adults, and sector-based workforce training programs can help students obtain skills valued in the labor market.
- Strengthen families. Family structure is strongly correlated with child poverty and long-term outcomes. Investing in strong families requires a multi-pronged approach aimed at addressing the decline in marriage among non-college educated adults, expanding programs that help low-income couples establish healthy relationships, and reforming the tax-and-transfer system to eliminate marriage penalties.
- Address individualized barriers to stability: All too often, individuals and families who struggle to make ends meet face a complex web of barriers that prevent them from becoming economically stable. Addressing poverty often requires providing assistance that is customized to the unique set of challenges that each individual or family faces.
- Boost upward mobility for poor children. Investments in children’s nutrition, healthcare, housing stability, and early education have proven to yield long-term gains in health, educational attainment, and earnings.
These reforms, the authors stress, should complement policies that promote and sustain strong economic growth and widespread opportunities for all.