Policy Making and Poverty

It is evident that a large population in the United States of America still lives in poverty despite the fact that this country has one of the most stable economies across the globe. Those living in poverty experience hardships that are mainly seen via the deprivation of material possessions. The aspect of poverty does not spare either the old or the young ones. From this aspect, childhood poverty has also been prevalent over the years. Childhood poverty, in this case, applies to situations where children are brought up in conditions that deny those stable homes, quality education, and sufficient nutrition. Most of the adults living in poverty are faced by conditions such as lack of skills required for them in order to be termed productive. Moreover, adults living in poverty lack adequate academic qualifications, which causes them to have limited wages. The problem of poverty has led to a situation where people have to forego essential aspects such as healthcare in favor of meeting their basic needs. Statistics indicate that fifteen percent of Americans are living in poverty. This percentage translates to approximately fifteen million children and thirty million adults. This number of people living in poverty cannot be taken for granted since this country has one of the most stable economies across the globe. Additionally, these poverty levels do not only affect the poor, but also affects the stability of the American economy.

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According to (Ferman, Louis, Joyce, Kornbluh, and Alan, 116-133) poverty is a problem that can only be overcome via the development of effective policies to tame it. It is also expected that poverty levels in the USA will become extensive under the current administration. This is a clear indicator that the USA government has failed to develop adequate and effective policies that can be used to fight poverty. This means that due to the lack of proper policies most of the Americans will still not be able to enjoy the American dream and also the pursuit of happiness. The declaration of independence was based on the aspect of the American dream and the pursuit of happiness. However, over the years, this statement still remains to be a dream. The real reason as to why the United States of America has failed to address poverty is due to poor planning and the lack of adequate policies to handle this problem. The federal government has failed to come up with incentives and strategies needed to make the USA economy stronger. Instead, the government has been focused on maintaining its status quo of becoming the world’s leading economy. In order to reduce poverty, the federal government should work towards ensuring that it puts effective plans in place. In this case, the government should try and focus on aspects such as minimum wage. Minimum wage policies involve looking into aspects such as regulating the labor market. Additionally, the government should also plan on how to handle issues such as the provision of health care, education, and housing. Therefore, having better policies will ensure that there is sustainability in the growth of the economy and this may lead to the reduction of unemployment levels. In conclusion, critical planning and the development of effective policies can help in alleviating poverty in the USA.

Statistics indicate that the poverty rate in the USA is approximately thirteen percent. However, the measures used to calculate the poverty rate levels were developed in the early 1960’s. This percentage translates to approximately forty-two thousand people. These statistics indicate that most of the Americans believe that poverty is on the rise. These levels of poverty indicate that inequality in America has been on the rise. Additionally, the statistics indicate that the government has failed in fighting poverty. Also, the poverty levels in the USA has led to calls by IMF to have the federal government tackle this problem. If not tackled in advance the problem is expected to escalate into levels that will be difficult to manage. The statistics on poverty levels also show that the USA government has failed in ensuring equity in income distribution. This data on poverty levels shows that the people considered poor in the USA are those who are not able to meet the various economic needs. Moreover, these people also tend to live minimally when compared to the normal living standards. Additionally, the statistics indicate that poverty has also destabilized the USA economy. These statistics have also led to the federal government come up with measures of combating poverty. The data collected on poverty can be used to deal with this problem. Limited data on poverty can limit the monitoring of data on poverty. However, with this data, the federal government can be able to come with policies needed to handle these problems.

Statistical analysis of poverty can be used to ensure that poverty eradication aid is allocated to the people who need it. Moreover, this data can be used to direct various investments to people who need it. This data can also be used in the implementation of short term and long term policies that can be used to fight poverty. This data can also be used in the identification of the beneficiaries of the various poverty elimination programs. The allocation of aid to people living in poverty can be an overwhelming task. However, through the use of statistical data, the government can be able to formulate guidelines that can be used to aid people living in poverty.

The use of a single data source to deal with poverty is not effective. The use of diverse data helps in ensuring that the data to be used in dealing with this problem is credible. The use of different disciplines, in this case, will ensure that the data to be used for analysis is of quality. Accurate data, in this case, can be used in the development of accurate plans to handle the problem of poverty. Additionally, the use of different discipline will ensure that the policymakers are able to have a clear understanding of the aspect at hand. In conclusion, the use of different sources will also provide an in-depth analysis of poverty. This in return will help in better planning on how to eradicate poverty.

The poverty measures that have been used to determine the poverty index in the USA has been a bone of contention. To start with the different aspects used to determine poverty tend to be confusing. The main approaches used are the threshold of poverty and the family income. To start with the definition of a family can be contradicting. A family is defined as people living in the same household. However, it is evident that the family has a broad definition. Most commonly, the family is defined as people who are related via the aspects of birth or marriage. In some instances, families consist of single parents, multiple parents and at times unrelated people residing together. Such aspects make it hard to measure poverty levels this concurs with the aspects presented in the film this is according to (DewiDewi. What’s Eating Gilbert Grape). It is evident that the use of such parameters to measure poverty levels does not put into consideration aspects such as pensions, social security, and taxes to name a few. The current approach used to measure poverty in the USA does not also include noncash benefits that individuals may be entitled to. Also, it does not put into consideration capital gains and aspects such as child support. The downfalls in this system have led to questions and contradictions. For this matter, it is evident that improvements should be done on this measure. The fact that poverty measures in the USA are valuable indicates that reforms should be implemented on the current approach. The measures should also be able to indicate the estimates used and how these estimates influence data interpretation. Poverty measures should mainly focus on income, earnings, and income inequality. These three approaches can be used to come up with an appropriate measure of rating poverty.

The federal government can develop a number of policies that can best address the aspect of poverty. Having a sustainable economic growth is some of the vital factors that can be used to deal with poverty. Economic growth ensures that the general income in a community is able to increase. This results in the creation of employment opportunities. Increases in employment opportunities lead to an equal distribution of income in the society and thus leading to the reduction of poverty levels. However, care should be taken in order to ensure that economic growth does not widen the gap between the poor and the rich. This can only be achieved by ensuring that people living in poverty are empowered.

The development of unemployment reduction policies can also help to deal with the problem of poverty. The development of such policies should mainly focus on empowering aspects such as free training for people who do not possess any skills. This can help such people provide both skilled and unskilled labor to the economy. These policies to reduce employment should focus on the minority groups and women. This is because these two groups are prone to poverty. Therefore, the policies should address specific geographical settings. This is because poverty is mainly associated with specific geographical positions. Moreover, planning to improve the infrastructure in such areas can also lead to the development of economic stimulus. On the other hand, the economic stimulus can help in the reduction of unemployment via the creation of employment opportunities. Employment can also be reduced via the implementation of monetary and fiscal policies. It is evident that reducing the interests rated and cutting on taxes can help in boosting the aggregate demand. The federal government should also introduce plans to make the labor markets more flexible. This will ensure that organizations are able to hire workers easily without facing a lot of setbacks generated by federal regulations.

Implementation of progressive taxation policies can also help deal with poverty. Progressive taxation helps to ensure that people who have a high income are taxed more when compared to those who earn a merge income. Progressive taxation helps to reduce the gap between the rich and the poor. This ensures that there is equality in the generation of national income. Additionally, progressive taxation also helps to ensure that welfare organizations are exempted from taxation. Through this such organizations can be in a better position of empowering the poor people.

Increasing the national minimum wage would be effective in eradicating poverty. This is because the low paid employees will be able to receive more wages and thus helping to cap the wage inequality. However, the implementation of such a policy will require to follow a well-formulated plan. This is because increasing the national minimum wage would result in companies employing fewer people due to the fact that they may be unable to afford labor. In such a case, the government can opt to reduce taxation on companies that tend to employ people at meager wages. Currently, education in the USA is very expensive. This means that a lot of people are not able to pursue their education to their satisfaction. Subsidizing public services such as education can allow many people to access education. This means that a lot of potentials that could have been lost is tapped. Moreover, people can have a chance to become successful in life by investing in their own education. Creating success opportunities for the less fortunate can help in eradicating poverty.

The healthcare industry has also been experiencing a lot of problems. These problems have made it impossible for people living in poverty to access quality healthcare services. This means that such people spend more on their healthcare since they are not in a position to afford healthcare insurance (Ferman, Louis, Joyce, Kornbluh, and Alan, 119). Subsidizing on the cost of healthcare can help such people reduce the amount of money that they spend on their healthcare. The money can alternatively be used in the development of income generating programs. Moreover, spending less money on their health care means that they will have enough to look after themselves and their families. Subsidizing the cost of healthcare will require effective planning. That is the government can develop policies that will allow people to purchase health care premiums based on their income. Lastly, the government should also establish universal basic income. This can be used to ensure that people are able to benefit from government funding despite their income. However, the implementation of such policies should ensure that there are no disincentives that may be associated with such a policy. In conclusion, poverty is a serious problem that requires well-established plans and policies in order to be eradicated in the USA.

Works Cited

DewiDewi. What’s Eating Gilbert Grape – Full,Movie’On-line. Full,Movie’On-line. July 12 2018. https://www.youtube.com/watch?v=VolcME18olM.

Ferman, Louis A., Joyce L. Kornbluh, and Alan Haber. “Poverty in America; a book of readings.” (1968).

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Policy Making and Poverty. (2019, Apr 15). Retrieved January 29, 2023 , from

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