FIRST DRAFT: Fit to print?

[Max Sawicky]

The poverty gap is defined as the amount of income
the poor require to all be brought up to the poverty
line.  EITC benefits go to many above the poverty
line, hence they don't fill the 'gap.'  So if my
income is $1,000 and my poverty line is $8,000,
$6,999 in assistance fills up most of my gap but
doesn't bring me 'out of poverty.'  By contrast,
if my income is $7,900, $200 of income would
push me over the poverty line.  More than other
assistance programs, the EITC is focused on those
in proximity to their poverty lines, hence it
moves more people out of poverty.  That is not
to say it is as effective as a program which
was strictly limited to those below the
poverty line, before and after counting
their benefits.

mbs


> Note re: the push more people above the poverty line, lest
> we get carried away. If it isn't obvious, moving people over
> the line is not the same as filling the poverty gap.  A program
> could fill a bigger part of the gap than EITC and move nobody 'over
> the line.'
>

Howso?

Christian

P.S. Brad: I liked this article, and learned new stuff from it (which I
like).