Six temporary federal initiatives enacted in 2009 and 2010 to bolster the economy by lifting consumers’ incomes and purchases kept nearly 7 million Americans out of poverty in 2010, under an alternative measure of poverty that takes into account the impact of government benefit programs and taxes. These initiatives — three new or expanded tax credits, two enhancements of unemployment insurance, and an expansion of benefits through the Supplemental Nutrition Assistance Program (SNAP, formerly called food stamps) — were part of the 2009 Recovery Act. Congress subsequently extended or expanded some of them.
...we find that the six Recovery Act initiatives kept 6.9 million people above the poverty line in 2010:
- Expansions in the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) kept 1.6 million people out of poverty.
- The Making Work Pay tax credit, which expired at the end of 2010, kept another 1.5 million people out of poverty.
- Expansions in the duration and level of unemployment insurance benefits kept 3.4 million people out of poverty.
- Expansions in SNAP benefits kept 1.0 million people out of poverty.
These initiatives had a wide reach across the population, reaching a majority of American households. The 6.9 million people kept above the poverty line in 2010 included an estimated 2.5 million children, 200,000 seniors, 3.1 million non-Latino whites, 1.3 million non-Latino blacks, and 2.0 million Latinos.
![](http://www.cbpp.org/images/cms//11-7-11pov-fig1-HTM.jpg)
![](http://www.cbpp.org/images/cms//11-7-11pov-fig2-HTM.jpg)
Much more at the
Center on Budget & Policy Priorities (CBPP).
And, if the ReTHUGS have their way, the many programs that kept people just barely out of poverty will disappear. From a
NY Times editorial today:
Things may be about to get worse.
Federal unemployment benefits, which generally kick in after 26 weeks of state-provided benefits, are scheduled to expire at the end of the year. That would be a disaster for many of the estimated 3.5 million Americans who get by on extended benefits — an average of $295 a week. It would also be a blow to the economy, because it would reduce consumer spending by about $50 billion in 2012 — which would mean slower economic growth and 275,000 lost jobs. Unfortunately, given Republicans’ demonstrated willingness to ignore human needs and economic logic, it is more likely than not that jobless benefits will be a major battle in the months ahead.
There are no plausible arguments against an extension — in fact, Congress has never let federal benefits expire when the unemployment rate was higher than 7.2 percent. But there are many specious arguments, chief among them that providing benefits reduces the incentive to get a new job. The evidence says otherwise.
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Unemployment benefits are the first line of defense against ruin from job loss that is beyond an individual’s control. In a time of historically elevated long-term unemployment, they are an important way to keep workers connected to the job-search market. They are also crucial to ensuring that the weak economy doesn’t weaken further.
With the "super committee" and legislative lust for cutting social support programs, we could see a massive spike of Americans in poverty who don't have basic resources to survive.
The CPBB analysis is proof positive that these programs work. It goes without saying that it's shameful that so many Americans NEED these programs -- it's beyond shameful, it's criminal as it's caused by the theft of our country by the 1% and their political patsies. And now the criminals are trying to wipe out these programs that mean basic survival for millions of Americans, with likely millions more added to those numbers over the next few years.