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Did We Lose the War on Poverty?

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  • Dale W. Jorgenson

Abstract

Official U.S. poverty statistics based on household income imply that the proportion of the U.S. population below the poverty level reached a minimum in 1973, giving rise to the widespread impression that the elimination of poverty is impossible. By contrast, poverty estimates based on household consumption have fallen through 1989 and imply that the war on poverty was a success. This paper recommends replacing income by consumption in official estimates of poverty in order to obtain a more accurate assessment of the impact of income support programs and economic growth on the level and distribution of economic well-being among households.

Suggested Citation

  • Dale W. Jorgenson, 1998. "Did We Lose the War on Poverty?," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 79-96, Winter.
    • Handle: RePEc:aea:jecper:v:12:y:1998:i:1:p:79-96
    Note: DOI: 10.1257/jep.12.1.79
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    References listed on IDEAS

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    Cited by:

    1. Yanfeng Chen & Qingjie Xia & Xiaolin Wang, 2021. "Consumption and Income Poverty in Rural China: 1995–2018," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(4), pages 63-88, July.
    2. Bruce D. Meyer & James X. Sullivan, 2009. "Five Decades of Consumption and Income Poverty," NBER Working Papers 14827, National Bureau of Economic Research, Inc.
    3. Wu, Ximing & Perloff, Jeffrey M., 2004. "China's Income Distribution Over Time: Reasons for Rising Inequality," Institute for Research on Labor and Employment, Working Paper Series qt9jw2v939, Institute of Industrial Relations, UC Berkeley.
    4. Ximing Wu & Jeffrey M. Perloff, 2005. "China's Income Distribution, 1985-2001," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 763-775, November.
    5. Kuan Xu & Ian Irvine, 2002. "Crime, Punishment and the Measurement of Poverty in the United States, 1979-1997," LIS Working papers 333, LIS Cross-National Data Center in Luxembourg.
    6. Michael Hurd & Susann Rohwedder, 2006. "Consumption and Economic Well-Being at Older Ages: Income- and Consumption-Based Poverty Measures in the HRS," Working Papers wp110, University of Michigan, Michigan Retirement Research Center.
    7. Raghbendra Jha & Bagala Biswal & Urvashi D. Biswal, 2001. "An Empirical Analysis of the Impact of Public Expenditures on Education and Health on Poverty in Indian States," ASARC Working Papers 2001-05, The Australian National University, Australia South Asia Research Centre.
    8. Panayiota Lyssiotou & Panos Pashardes, 2004. "Comparing the True Cost of Living Indices of Demographically Different Households," Bulletin of Economic Research, Wiley Blackwell, vol. 56(1), pages 21-39, January.
    9. Michael D. Hurd & Susann Rohwedder, 2006. "Economic Well-Being at Older Ages: Income- and Consumption-Based Poverty Measures in the HRS," NBER Working Papers 12680, National Bureau of Economic Research, Inc.
    10. Sami Bibi, 2001. "Comparing Effects of General Subsidies and Targeted Transfers on Poverty: Robustness Analysis Using Data Set from Tunisia," Working Papers 0125, Economic Research Forum, revised 09 Jun 2001.
    11. Jones, Carol Adaire & Milkove, Daniel & Paszkiewicz, Laura, 2009. "Measuring Farm Household Well-Being: Comparing Consumption and Income-based Measures," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49355, Agricultural and Applied Economics Association.
    12. Christopher C. Moore, 2011. "Welfare Impacts of Ocean Acidification: An Integrated Assessment Model of the US Mollusk Fishery," NCEE Working Paper Series 201106, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Dec 2011.
    13. Urvashi Dhawan-Biswal, 2002. "Consumption and Income Inequality: The Case of Atlantic Canada from 1969­1996," Canadian Public Policy, University of Toronto Press, vol. 28(4), pages 513-537, December.
    14. Will Chancellor & Shiji Zhao, 2021. "Agricultural Households: An Exploratory Analysis Revisiting Financial Position and Well‐being in Australia," Economic Papers, The Economic Society of Australia, vol. 40(1), pages 14-30, March.
    15. Jing Cao & Mun Sing Ho & Wenhao Hu & Dale Jorgenson, 2021. "Urban household consumption in China: Price, income, and demographic effects," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 810-833, May.
    16. Robert H. DeFina, 2002. "The impact of unemployment on alternative poverty measures," Working Papers 02-8, Federal Reserve Bank of Philadelphia.
    17. Mykerezi, Elton & Mills, Bradford F., 2009. "On Intra-Annual Poverty in the U.S.: Prevalence, Causes and Response to Food Stamp Program Use," Staff Papers 49095, University of Minnesota, Department of Applied Economics.
    18. Atasoy, Sibel & Mills, Bradford F. & Mykerezi, Elton, 2008. "Intensity of Food Stamp Use and Transient and Chronic Poverty: Evidence from the Panel Study of Income Dynamics," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6541, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Alma Kudebayeva, 2018. "Chronic Poverty in Kazakhstan," CERGE-EI Working Papers wp627, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    20. David Brady, 2003. "The Poverty of Liberal Economics," LIS Working papers 343, LIS Cross-National Data Center in Luxembourg.
    21. Self, Sharmistha & Grabowski, Richard, 2006. "The Asian Financial Crisis: Impact on Human Development," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 2(2), pages 1-13.
    22. Irwin Garfinkel & Marcia K. Meyers, 1999. "Social indicators and the study of inequality," Economic Policy Review, Federal Reserve Bank of New York, vol. 5(Sep), pages 149-163.
    23. Peter Gordon & Harry W. Richardson, 1999. "Review Essay: Los Angeles, City of Angels? No, City of Angles," Urban Studies, Urban Studies Journal Limited, vol. 36(3), pages 575-591, March.
    24. Michael D. Hurd & Susann Rohwedder, 2006. "Economic Well-Being at Older Ages: Income- and Consumption-Based Poverty Measures in the HRS," NBER Working Papers 12680, National Bureau of Economic Research, Inc.
    25. David Brady, 2002. "Rethinking the Sociological Measurement of Poverty," LIS Working papers 264, LIS Cross-National Data Center in Luxembourg.

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    More about this item

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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