Progress for the Poor

by Lane Kenworthy

One of the principal goals of antipoverty efforts should be to improve the absolute living standards of the least well-off. This book aims to enhance our understanding of how to do that, drawing on the experiences of twenty affluent countries since the 1970s.

The book addresses a set of questions at the heart of political economy and public How much does economic growth help the poor? When and why does growth fail to trickle down? How can social policy help? Can a country have a sizeable low-wage sector yet few poor households? Are universal programs better than targeted ones? What role can public services play in antipoverty efforts? What is the best tax mix? Is more social spending better for the poor? If we commit to improvement in the absolute living standards of the least well-off, must we sacrifice other desirable outcomes?

Genres: Politics

172 pages, Hardcover

First published August 25, 2011

Reviews

[Mark · Rating 4 out of 5]

This slim but powerful book makes a simple case that might seem obvious, but has been obscured by many of our political debates: If you want to help the poor, you have to transfer more money to them, period.

Kenworthy is an economist at the University of Arizona, and in comparing the U.S. to several other developed nations, he finds that even though all of their economies grew over the last 30 years, virtually none of them was able to increase the welfare of poor people through either higher incomes or more work hours. In the U.S. in particular, while the poor did work more and earn more during the booms of that period, they lost so many work hours during recessions that it more than compensated for any gains they might have made.

The income picture wasn't much better for the poor in places like Sweden, Denmark, Germany or France, but their material well-being was, and it was a direct result of more generous transfers by the government to those with the lowest incomes.

Also, interestingly enough, Kenworthy agreed with other studies that show that the total social welfare expenditures per capita in the United States are actually greater than in countries like Sweden and Denmark. But most of the U.S. expenditures go to things like tax breaks to employers for pensions and health care insurance, almost none of which is of benefit to the poor, so the greater per capita expenditure on overall social welfare does not trickle down either.

This is an important book, although, if I may be allowed a small rant, the pricing of academic books is outrageous. This is 109 pages all told, little more than an extended essay, and yet Oxford Press priced this baby at $65 or so. Unbelievable.