[HN Gopher] America is substantially reducing poverty among chil...
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       America is substantially reducing poverty among children
        
       Author : paulpauper
       Score  : 111 points
       Date   : 2021-09-24 19:05 UTC (3 hours ago)
        
 (HTM) web link (www.economist.com)
 (TXT) w3m dump (www.economist.com)
        
       | clcaev wrote:
       | This is not a zero sum game. By providing funds for necessities,
       | there will be increased demand. This demand will spawn new
       | supply, which will bring prices back down. If this child tax
       | credit is left in place, it should cause our economy to
       | restructure some, paying more attention to essentials for
       | children. Those providing for these needs create jobs, further
       | economic activity, and tax revenue.
        
       | chiefalchemist wrote:
       | Poverty is more than an financial state. Giving away money to
       | move someone from just below the poverty line - which is
       | artificially low - to just above that line is honorable, but
       | "curing" poverty is not that simple. Unfortunately, articles like
       | this help the myth persist.
       | 
       | More political magician-y mumbo jumbo.
       | 
       | It's also important to ask: at what cost? If these monies were
       | financed by printing more money, then that's a form of tax. It
       | discounts all other money in circulation. Who does that hurt the
       | most?
       | 
       | No doubt something should be done. Poverty is a cruel and
       | unnecessary disease. But printing money...a one off??? Let's not
       | over sell this. Unfortunately.
        
         | 45yu56bwedfg wrote:
         | Money is always printed. The only difference is how fast we
         | inflate the current supply, not that we inflate it. Inflation
         | is a function of the system itself. Its fundamental.
         | 
         | Poverty is a desired outcome of this system.
        
           | clavalle wrote:
           | Keeping money moving is the desired outcome of inflation.
           | 
           | Spending money isn't what keeps people in poverty.
        
         | munk-a wrote:
         | Inflation always directly hurts those with the most the most by
         | value alone - but it can specifically cause hardships to those
         | who are in some critical point where an extra dollar could
         | cause a dramatic increase in quality of life.
         | 
         | I think most proposals around sustaining this benefit in the
         | long term don't rely on pure monetary creation but instead
         | would shift it to a budget item that is directly funded by
         | taxes (which in theory can be better targeted to hit those with
         | excess)
        
       | flimflamm wrote:
       | How can children be poor? Aren't their parents poor? Or are
       | children supposed to provide for them selves in US?
        
         | wolverine876 wrote:
         | I would look past the literal question in the parent, and think
         | about the implications: Who provides for children? Why should
         | they suffer poverty, having no power or responsibility for
         | their own condition?
        
         | ip26 wrote:
         | We attach a dollar figure to make it easier to measure, but a
         | different way to look at it is when your basic needs are not
         | met (food, shelter) you live in poverty; you are impoverished.
        
         | stevenpetryk wrote:
         | Consider this: the intention is quite obvious, and the gravity
         | of the situation makes pedantry like this come across as
         | completely tone-deaf.
        
         | NineStarPoint wrote:
         | The phrase isn't "children who are poor", it's "children living
         | in poverty." Which yes primarily counts children living with
         | poor parents, but could also count runaway children, children
         | living as wards of the state in bad conditions, etc. Either
         | way, it's defined as children in living conditions that don't
         | have enough resources to meet a minimal acceptable standard.
        
         | munk-a wrote:
         | Dependents can certainly live in poverty - that does almost
         | always indicate that the family unit as a whole lives in
         | poverty but it does allow some differentiation for families
         | that are struggling with debt but manage to provide a
         | relatively poverty free childhood for their offspring.
        
         | droopyEyelids wrote:
         | You're getting downvoted for the joke, but in a way, yes
         | everyone in the USA is supposed to provide for themselves.
         | 
         | Aside from a few demeaning and complicated government programs,
         | the USA has only distributed resources through factor payments
         | based on labor, or ownership of capital. Most of our programs
         | aiming to help the poor only phase in after the poor have
         | earned a certain amount of money through labor.
        
       | jollybean wrote:
       | The data from the graph in the article shows a very obvious
       | downward trend of child poverty from the end of 2020 until now.
       | The line that demarcates the 'monthly cheques' I don't think is
       | remotely remarkable.
       | 
       | That's not to say anything for or against the program, but I
       | think that they are overstating things.
       | 
       | If you want a chart that shows a 'possible driver' of lowered
       | poverty that lines up a little bit more nicely with that graph,
       | try this [1] which is just US BLS unemployment. As millions of
       | people become unemployed ... child poverty rates spike, as they
       | become employed, they go down.
       | 
       | [1] https://tradingeconomics.com/united-states/unemployment-rate
        
       | rootusrootus wrote:
       | Mostly because the pandemic caused panic stimulus spending, not
       | because of permanent, structural changes to fiscal policy.
        
         | srj wrote:
         | Not sure if you're aware but the US recently started sending
         | checks to families every month.
        
           | BeetleB wrote:
           | They are merely paying out a tax credit early. Families are
           | not getting more (or at least, not much more) than before due
           | to this.
        
           | nielsbot wrote:
           | The blurbs I've heard say this has cut US child poverty in
           | half. I should find a source...
        
           | iammisc wrote:
           | You can't honestly believe that this reduced child poverty.
           | While the Child tax credit has been increased, it's been on a
           | steady increase for a while, and the net amount hasn't
           | changed that much. If the claim is that the timing of
           | payments is reducing poverty.. that's quite the claim.
           | 
           | The more obvious answer is that America had quite the
           | recovery from the great recession including a pre-pandemic
           | unemployment rate approaching 0%.
        
             | lkbm wrote:
             | > While the Child tax credit has been increased, it's been
             | on a steady increase for a while, and the net amount hasn't
             | changed that much.
             | 
             | From what I can tell, it increased by 80%[0], from $2,000
             | to $3,600. (It varies for different household
             | structures/incomes, but in general the poorest get the
             | most.)
             | 
             | > If the claim is that the timing of payments is reducing
             | poverty.. that's quite the claim.
             | 
             | As someone who's got some close friends who are poor, yes,
             | monthly payments can make a big difference.
             | 
             | But really, the extra $1,200 isn't insignificant. It's 5%
             | of the 25%ile income, and 14% for the 10%ile[1]. $1,200 a
             | year is literally over 50% some of my friends' total food
             | budgets. (I'm sure someone will jump in to explain how they
             | could _never_ eat for that little, but I can assure you
             | that _many Americans do_.)
             | 
             | [0] https://www.forbes.com/advisor/taxes/will-i-receive-
             | the-chil...
             | 
             | [1] https://dqydj.com/income-percentile-calculator/
        
               | iammisc wrote:
               | Is the claim that 1600 dollars made the difference
               | between poverty and subsistence?
               | 
               | I have nothing against the child tax credit. I think it's
               | great. But I am hard pressed to believe 1600 dollars has
               | eliminated poverty. If it did... Great that's a really
               | cheap way to do it!
        
           | RegBarclay wrote:
           | Those checks are prepayment of a child tax credit. In my
           | case, it just increases what I'll owe when I file my taxes.
        
       | munk-a wrote:
       | I think this (COVID relief) is the closest America is going to
       | get to a legitimate domestic experiment on UBI we're going to get
       | for a while so it's rather heartening to see the drop in family
       | poverty.
        
         | dillondoyle wrote:
         | I bet the new child tax credit will stay on the books. It's
         | such a game changing boost to lower income families.
        
         | AndrewBissell wrote:
         | This is going to last only as long as it will take for the
         | labor supply pressures to squeeze out small- and medium-sized
         | businesses for the large corporate interests to scoop up on the
         | cheap. They're not going to permanently constrict the reserve
         | army of labor.
        
         | markus_zhang wrote:
         | If cost is not controlled I'd expect expenses of food, clothed
         | and renting to rise after UBI being implemented.
        
           | encoderer wrote:
           | Costs cannot be controlled. That's not how it works. That's
           | how you get empty shelves.
           | 
           | I think some inflation will happen but not dramatically in
           | food and clothing. We do not have many naked and starving
           | people in America. It's the premium consumer goods that will
           | see higher demand - think dishwashers not Chanel.
        
             | com2kid wrote:
             | > Costs cannot be controlled. That's not how it works.
             | That's how you get empty shelves.
             | 
             | Many types of food in America are massively subsidized,
             | including dairy[1], beef[2], and corn.
             | 
             | Government policies can certainly drive down prices. Direct
             | price controls don't work, but subsidizing production most
             | certainly works.
             | 
             | Though an economist would argue that a dollar saved at the
             | market cost tax payers more than a dollar to get, due to
             | inefficiencies, counter argument is that people who are
             | poor pay less taxes and benefit more from reduced food
             | prices. (At which points arguments about corn subsidizes
             | and long term harm to the health of the citizenry are
             | brought up.)
             | 
             | [1] https://www.numbeo.com/cost-of-
             | living/country_price_rankings...
             | 
             | [2] https://www.numbeo.com/cost-of-
             | living/country_price_rankings...
        
             | inglor_cz wrote:
             | I guess rent will be the one to go up in case of UBI.
             | 
             | UBI fundamentally does not solve the problems that:
             | 
             | a) some people do not want to live next to some other
             | people, and are willing to pay extra for that privilege -
             | now they have even more money to use for that purpose,
             | 
             | b) in the most expensive regions, demand exceeds supply a
             | lot.
             | 
             | I even think that a vast majority of UBI would, at the end,
             | accrue to landlords.
        
               | vpribish wrote:
               | in the current context of this experiment rent dropped by
               | 30% in SF while this was going on. Sure some of that was
               | people fleeing dense urban areas to escape lockdowns, but
               | also some was people decamping because the economic
               | pressure to work in a city was lifted. UBI might be a
               | terrible threat to landlords' incomes as people
               | redistribute.
        
               | chii wrote:
               | the drop in rent would be more attributable to the WFH
               | policies instituted by many companies rather than any UBI
               | imho.
        
               | colinmhayes wrote:
               | It's gotta be combined with YIMBY policies, hopefully
               | LVT.
        
             | markus_zhang wrote:
             | The state can definitely influence the prices of goods
             | (e.g. it can affect the price of money). Direct control is
             | indeed infeasible.
        
           | oconnor663 wrote:
           | I can see the argument for the price of rent rising, but why
           | would the prices of food and clothing rise? My understanding
           | is that those are highly competitive markets, with low
           | margins on top of the cost of production, at least in their
           | non-luxury segments. Is that wrong?
        
             | BobbyJo wrote:
             | Food and clothing depend on other things (cost of
             | employees, equipment, materials, etc.) When the costs of
             | those things rise, the cost of food and clothing will have
             | to rise.
        
               | rualca wrote:
               | > Food and clothing depend on other things (cost of
               | employees, equipment, materials, etc.) When the costs of
               | those things rise, the cost of food and clothing will
               | have to rise.
               | 
               | Not really. You're pointing to production costs, but
               | production costs just define the price's lower bound, not
               | the price itself.
               | 
               | Price depends solely on willingness to pay and pricing
               | strategy, which is higher than the production cost when
               | the product/service is not subsidized or a loss leader.
        
               | oconnor663 wrote:
               | It seems like there are two effects we're considering at
               | the same time:
               | 
               | 1. UBI might increase people's willingness to pay for
               | goods in general, and the prices of goods that are most
               | strongly driven by willingness to pay would rise. (Rent
               | in expensive cities might be an example of this. Milk,
               | soap, and socks probably aren't.)
               | 
               | 2. To the extent that UBI is paid for with higher taxes,
               | the prices of everything would go up. This seems
               | obviously true on average and to some extent, but the
               | specific numbers matter a lot. For example if prices go
               | up by 10%, but the people whom UBI is designed to help
               | see their income rise by 20%, then UBI is achieving its
               | stated goal. (Importantly, the hypothetical 10% rise in
               | prices doesn't reflect wealth being burned or spent, but
               | rather resources being moved around in some sense.)
        
               | joshenberg wrote:
               | Depends where we source them, for example American-made
               | clothing is already prohibitively expensive to the
               | economic demographic segments that are targeted by UBI
               | experiments.
        
             | markus_zhang wrote:
             | Not necessarily non-luxury but also the middle brands I
             | think. But it's difficult to prove though. As a user said
             | the pandemic also sees a decrease in supplies so it's kinda
             | difficult to do "tests" properly.
        
           | munk-a wrote:
           | I think that's one of the biggest weaknesses of using the
           | pandemic as an experiment on UBI - it's one of the best ones
           | we'll get for a while (and I think we have seen increases in
           | luxury spending from most sectors which would indicate
           | greater financial security) but at the same time we're seeing
           | the continued echoes of supply chain shortages. It'll be hard
           | to determine precisely why the price of meat has gone up from
           | two prior, there are quite legitimate additional costs on
           | production by having increased sanitary and working space
           | requirements - and I think both sides of the UBI debate will
           | be able to sanely say that those costs were either mostly due
           | to the pandemic or mostly due to labour shortages driven by
           | the covid benefit... and I don't know if we'll ever get a
           | really clear answer.
        
         | ajsnigrutin wrote:
         | Nah, it's not.
         | 
         | Monthly lottery winners are.
         | 
         | If you know that 'free money' is just a temporary thing, you
         | don't quit your job and move somewhere where that amount of
         | money is enough to survive, and just stop working.... if ubi is
         | permanent, and guaranteed to be "enough" to minimalistically
         | survive, many more people would do that.
        
           | jdavis703 wrote:
           | I think this depends. If you work in a fungible occupation
           | with limited career growth you very easily can take a year
           | off. And most of these UBI experiment have targeted low-
           | income folks who most likely work these kind of jobs.
        
           | munk-a wrote:
           | Monthly lottery winners are a pretty poor basis for
           | evaluating UBI since that is promoting an arbitrary
           | individual to wealth - rather than providing a baseline
           | income to a whole community. The effects of the later can
           | easily be conceived to be quite different from targeted
           | welfare. One of the common counter-arguments against UBI is
           | that because the boon is applied across the board (and not
           | just effecting the needy) that it will essentially cancel out
           | and just cause a momentary bump in inflation - I think there
           | are several very logical reasons that isn't the case but
           | lottery winners are extremely poor experiments to disprove
           | that theory.
           | 
           | As an example of how prevalent that counter-argument is
           | please see all the siblings specifically about how UBI =
           | inflation. (Also - I don't think this debate is settled - I
           | think there are compelling reasons why UBI is not just free
           | inflation... but there are also several reasons suggesting
           | that it is - the UBI counter-argument is not at all
           | illogical).
        
             | inglor_cz wrote:
             | > providing a baseline income to a whole community
             | 
             | The rich oil sheikdoms in the Gulf are already providing a
             | good income to all their citizens (not the working class
             | gastarbeiters).
             | 
             | We should definitely observe them and learn from their
             | experience. It is not precisely the same as UBI, but closer
             | than anything else I can think of.
        
               | munk-a wrote:
               | Canada has also carried out a few interesting UBI
               | experiments with pretty positive feedback - but I think
               | America needs to see something happen domestically to
               | give it a serious consideration.
        
               | klyrs wrote:
               | If only Alaska was considered "domestic" enough...
               | 
               | https://en.m.wikipedia.org/wiki/Alaska_Permanent_Fund
        
               | chii wrote:
               | > sheikdoms in the Gulf are already providing a good
               | income to all their citizens
               | 
               | which is looking to failing as soon as the price of oil
               | drops. The saudis are now having to pay VAT to the state,
               | for the first time recently.
               | 
               | UBI doesn't work if the productivity of the country would
               | drop as a result of implementing a UBI. And i can't think
               | of any reason why productivity would not drop, since
               | there would definitely be some people who are currently
               | productive, but would drop that productivity if there
               | would be a UBI that's livable for them.
               | 
               | The argument that there would be a percentage who would
               | increase their productivity (such as starting their own
               | small business, etc) is merely speculative, since if they
               | could start a small business, why don't they do it now,
               | without waiting on UBI? If the UBI is what enables them
               | to invest their time and capital, what makes UBI the only
               | way to obtain capital, rather than seed capital? If it is
               | _only_ UBI that can give them this seed capital, then
               | they are effectively being subsidized by tax payers to
               | entrepreneurship - if that was the goal, why not make
               | that explicit, and give grants for such?
        
           | throwaway210222 wrote:
           | > if ubi is permanent...
           | 
           | The most likely outcome is that very quickly all the UBI
           | money will be going to the few landlords and soon people will
           | need "UBI plus a job" to pay rent and make ends meet.
           | 
           | And whilst the masses our back out in the wilds scrounging up
           | their money, the landlord class will be consolidating into an
           | every smaller group.
           | 
           | Inflation is what happens when too much money chases a
           | limited supply of goods. And desirable housing is always
           | limited.
        
             | [deleted]
        
             | kiba wrote:
             | That's why you need to fight asset inflation, reduce red
             | tapes and increasing housing opportunities.
        
               | throwaway210222 wrote:
               | Sure, but it behoves advocates to UBI to say:
               | 
               | "We have a solution that not only includes handing outs
               | cash to everyone forever, but to fight the associated,
               | unavoidable rent inflation we will introduce sweeping
               | changes to hard-earned building standards, negatively
               | alter the character of many many neighbourhoods, and add
               | a massive beurocracy to introduce and enforce with the
               | power of the state all sorts of price controls."
               | 
               | They don't do this because obviously far fewer people
               | would think its a good idea.
        
               | kiba wrote:
               | I thought the problem was with bureaucracy, especially
               | with restrictive zoning laws, and the propensity to say
               | no.
        
               | onetrueliberal wrote:
               | Bureaucracy is a wellspring of employment.
        
             | jlmorton wrote:
             | Rent is only affected by income/capacity to pay to the
             | extent that supply is limited.
             | 
             | You could give everyone currently living in Detroit
             | $10,000/month, and it wouldn't impact rental prices at all,
             | because there is an abundance of supply. Do the same thing
             | in NYC, and indeed rental prices will soar.
        
             | notJim wrote:
             | > The most likely outcome is that very quickly all the UBI
             | money will be going to the few landlords and soon people
             | will need "UBI plus a job" to pay rent and make ends meet.
             | 
             | This doesn't make sense. If it was the case, raising the
             | minimum wage would have the same result, but studies have
             | shown that people are better off when the minimum wage goes
             | up. Landlords do not have infinite power to raise prices,
             | because they are in competition with one another.
             | 
             | To the extent landlords have too much power, it's largely
             | because we have decided to prevent the construction of new
             | housing for many years.
             | 
             | > And desirable housing is always limited.
             | 
             | Does not have to be if you allow people to build more
             | housing, and fix the regulations that make it overly
             | expensive to do so.
        
               | chii wrote:
               | I would argue raising minimum wage doesn't have the same
               | effect, because the value produced by the job on this
               | minimum wage, in totality, is still higher than the
               | minimum wage (because if it weren't, those jobs would
               | then be gone, and the person would end up with no job,
               | rather than a raised minimum wage).
        
             | TuringNYC wrote:
             | It depends on how much UBI is. There is plenty of housing
             | in the US, for example -- except there isnt enough near
             | where jobs exist. If UBI was sufficient for survival,
             | people could migrate away from high cost areas to exurbs.
             | There are huge swaths of housing once you go far enough,
             | except that isnt possible if you still need to supplement
             | UBI with a job and are hence tied to a major metro area.
        
           | est31 wrote:
           | If 20 quit their low wage job and one of them finally has
           | time to study and become a researcher or doctor, I think it's
           | worth it.
        
             | ajsnigrutin wrote:
             | What if they become a shitty musician? And curent
             | researchers get paid even less, because their money goes to
             | a kid who'd rather play his ukulele inestead of working?
        
               | MisterBastahrd wrote:
               | That's a valid argument only if you believe that a person
               | only lives a life worth living if they have utility to
               | others.
        
               | munk-a wrote:
               | And honestly - the internet has democratized content
               | creation to such an extent that a lot of really niche
               | interests can attract funding (just, not very much).
        
           | jandrese wrote:
           | Using Lotto Winners as your experiment has the problem of
           | selecting only the people who play the lotto. Your data will
           | be biased towards less fiscal responsibility.
        
             | SketchySeaBeast wrote:
             | While I'm certain that there are people who spend an
             | irresponsible amount on lottery tickets, I don't know if
             | those are also the lottery winners.
             | 
             | I'd be very interested in any statistics for that. Where I
             | am lottery tickets cost about the same as a Starbucks
             | coffee, and I'd bet the average lottery player buys tickets
             | less than the average Starbucks drinker buys coffee, making
             | me wonder about the label of "less fiscally responsible",
             | unless we're also grouping all Starbucks drinks in there.
             | And given the astronomically poor odds of winning, I also
             | wonder how much more regular players win vs those who buy a
             | ticket once every month or two - does it really help enough
             | to be obvious in the statistics.
        
               | PaulDavisThe1st wrote:
               | The lottery ticket purchase is a gamble: spend money,
               | almost certainly get nothing, tiny chance of winning big.
               | 
               | The coffee purchase is just that, a purchase: spend
               | money, get coffee.
               | 
               | The amounts might be similar but the transaction class is
               | totally different.
        
               | SketchySeaBeast wrote:
               | I don't know, it's really a form of entertainment. The
               | odd chances I do buy a ticket it's to think about what I
               | would do if I won. I'm not expecting to win, I just like
               | the idea.
               | 
               | And both are transient and rather empty - neither provide
               | any real value outside of a brief joy.
        
           | spywaregorilla wrote:
           | If a noteworthy number of people decided they were going to
           | not work, the cost of labor would rise, and prices would rise
           | until those people needed to work again.
        
         | jollybean wrote:
         | That might be true. But the payouts were more limited than a
         | nominal UBI program, and the costs were astronomical.
         | 
         | The US added 20% of GDP in debt in a single year. [1]
         | 
         | The US Fed added 4 Trillion to it's balance sheet in 2 years
         | [2] which is ballpark maybe 25% of GDP.
         | 
         | Obviously there was more than just wealth distribution in
         | there, but what becomes clear in the calculation is the
         | gigantic expense of UBI.
         | 
         | UBI doesn't work in current terms, it's not a program that can
         | be remotely afforded without a 'total re-work of the system'.
         | Surely there are opportunities with taxing the ultra-wealthy
         | and considering loopholes (esp. offshore tax havens) but
         | there's just no calculus where it works out neatly. In other
         | words 'UBI' is not like 'child care benefits' or some kind of
         | regular social program where can argue about the balance sheet.
         | It's a completely different scale of costing problem.
         | 
         | If the US focused really hard on 'some kind of healthcare for
         | all' (not making any statements about what that might look
         | like) and controlling costs there, improved minimum wage, and
         | did 'basic structural tax reform' - things might improve quite
         | a lot. (i.e. doing the hard work of reforming normal programs
         | we have to have would go a very long way). But I don't think
         | there's any actual magic math that would allow for a true,
         | enduring UBI situation. Even really well managed Oil-rich
         | places like Norway don't quite have that, they sort it out
         | using the more accessible, 'normal' social programs etc..
         | 
         | For more context 'the current payout program' which is not not
         | 'U' in the UBI, just for about 10% of the population, is going
         | to cost 0.5% of GDP. Meaning just that limited program,
         | expanded to 'U' i.e. 'Universal' is 5% of GDP, every year.
         | 
         | Edit: finally should not that a lot of the expansion of the
         | Fed's balance sheet amounts for 'welfare for the rich' and it's
         | not a small amount. That's a problem as well.
         | 
         | [1]
         | https://en.wikipedia.org/wiki/National_debt_of_the_United_St...
         | 
         | [2]
         | https://www.federalreserve.gov/monetarypolicy/bst_recenttren...
        
           | fozzyfozfoz wrote:
           | No wonder the US president is going around kneeling like he
           | just took an arrow in the Achilles. The US just spent tens of
           | trillions of dollars chasing Hector around Troy while Hector
           | had a trojan stuck right up the US' big thick yoga ass.
        
         | WalterBright wrote:
         | > a legitimate domestic experiment on UBI
         | 
         | The pandemic spending is unsustainable.
        
           | gkop wrote:
           | Parent said "experiment".
        
             | sam0x17 wrote:
             | A lot of people on the left do want to make the child tax
             | credit permanent, and there is no logistical reason we
             | couldn't do that other than political constraints.
        
           | sam0x17 wrote:
           | The amount we've spent on child tax credits and toe-dipping
           | into UBI is a drop in the bucket compared to spending
           | $300m/day for 20 years in Afganistan without even breaking a
           | sweat. Clearly we can handle this kind of spending, and more,
           | especially if we increase tax enforcement on the top 1% of
           | earners and _gasp_ actually re-assess the capital gains tax
           | to ensure that people like Jeff Bezos are paying at least 28%
           | tax on their capital gains just like they would on regular
           | income.
           | 
           | These programs are also an investment in the economy that
           | pays itself forward in the form of increased social mobility,
           | and thus increased future tax revenue, so it is by no means a
           | net loss. It could even be the case that every $1 invested in
           | these kinds of programs results in more than $1 in created
           | new tax revenue a few years down the road. This is called
           | investing in our future. A new concept, I know.
        
       | fozzyfozfoz wrote:
       | At the same time the largest growing group is supposedly "Asian"
       | Americans according to Pew research. It's funny how they group
       | over four billion people into one ethnicity. Ironically (or not)
       | the two major economic work horses in the American "alliance" are
       | experiencing sharp declines in population growth, while the
       | Chinese and Filipinos make up the largest group.
        
       | notJim wrote:
       | https://archive.is/I6wrL
        
       | rubyist5eva wrote:
       | Wait until you start to really feel the effects of inflation. The
       | tone of this article is very pravda-esque.
        
         | silver-arrow wrote:
         | Agreed. Simply a changing unit of measurement. Wait until this
         | finishes out, you will see decimation of the middle class
        
           | rubyist5eva wrote:
           | For an outlet called "economist" you'd think they would be
           | more cautious at jumping for joy at 1 month of data which is
           | barely even a blip.
        
       | m_ke wrote:
       | *Temporarily, and partially thanks to the previous administration
       | 
       | The infrastructure bill is about to fail due to a few corrupt
       | corporate Democrats.
        
         | munk-a wrote:
         | I am pretty certain the COVID relief funding has been primarily
         | placed on the chopping block by republicans recently with
         | efforts to increase it coming out of the democratic side -
         | there are of course exceptions to this with some of the more
         | moderate democrats siding with a scaling back of benefits
         | (nothing is monolithic or purely black and white).
        
         | dang wrote:
         | Please don't take HN threads into partisan flamewar. It's the
         | opposite of what we're trying for on this site.
         | 
         | https://news.ycombinator.com/newsguidelines.html
        
           | m_ke wrote:
           | It's not partisan, the child tax credit that gives parents
           | $300/month/child that was included in the "American Rescue
           | Plan" expires at the end of the year. [1]
           | 
           | The new infrastructure bill was supposed to include free
           | childcare and other benefits but it's looking like it will
           | get killed by Manchin and Sinema.
           | 
           | [1] "The American Rescue Plan allows families to opt in to
           | receive the monthly payments from July 15 until Dec. 15,
           | 2021." - https://www.forbes.com/advisor/taxes/will-i-receive-
           | the-chil...
        
             | munk-a wrote:
             | I feel like the wording in your original post was
             | particularly poor though - instead of focusing in on those
             | two as individuals you attributed the issue to democrats as
             | a whole - and also omitted that the bill would also pass
             | quite easily if, say, Rand Paul and Ted Cruz decided to
             | vote for it. You mentioned that it passed due to the
             | previous administration (a republican administration) and
             | was now in danger (under a democratic administration) due
             | to corrupt democrats. It's a guideline on HN to always read
             | things as charitably as possible but the wording here was
             | really really poor and could easily be read as a
             | proposition that the democrats were torpedoing something
             | championed by republicans. Additionally - specifically
             | pulling political parties into the discussion will always
             | make the discourse degrade.
        
               | m_ke wrote:
               | Here's my wording for anyone who can't see it due to it
               | being flagged:
               | 
               | """ *Temporarily, and partially thanks to the previous
               | administration
               | 
               | The infrastructure bill is about to fail due to a few
               | corrupt corporate Democrats. """
               | 
               | It's more than just Sinema and Manchin, that's why I said
               | a few corporate democrats:
               | https://www.businessinsider.com/house-democrats-threaten-
               | hol...
               | 
               | I'm pretty left leaning by American standards and no fan
               | of Trump, but you can't give Biden too much credit for
               | reduction in childhood poverty when it's mostly due to
               | the expanded unemployment benefits that were first before
               | Biden was elected.
        
               | jimbob45 wrote:
               | A lot of people fresh to the political process may not
               | realize that this is a routine thing that happens on both
               | sides of the aisle. For example, Lieberman in 2009 killed
               | the public option[0] for his own party on Obamacare which
               | would have gone a long ways toward forwarding the left's
               | healthcare vision. Later on in 2017, Susan Collins, a
               | Republican, voted to save Obamacare which very likely
               | could have succeeded had she voted with her party[1]
               | 
               | [0]https://www.commonwealthfund.org/publications/newslett
               | er-art...
               | 
               | [1]https://www.healthreformvotes.org/congress/300025
        
               | m_ke wrote:
               | Another thing that some people don't realize is that this
               | reconciliation bill could be the last attempt at Biden
               | passing any meaningful legislation. If it fails dems are
               | guaranteed to lose seats in the midterms, giving up their
               | slim majority and effectively turning Biden into a lame
               | duck president.
        
               | jimbob45 wrote:
               | I'm happy to disagree with you on that one. Consider the
               | actual Senate elections[0]. There are 20 R seats up vs 14
               | D seats. The R side is mathematically on the defense. In
               | addition, if you look at the forecasts, _most_ of the
               | seats are foregone conclusions - we 're down to ~5 seats
               | that will be actual contests. This isn't to say one side
               | will or will not win but neither side is likely to get
               | the decisive win that each want.
               | 
               | [0]https://en.wikipedia.org/wiki/2022_United_States_Senat
               | e_elec...
        
               | m_ke wrote:
               | I hope you're right but:
               | 
               | 1. His approval numbers are tanking
               | https://news.gallup.com/poll/354872/biden-approval-
               | rating-hi...
               | 
               | 2. Summer is just ending and we're up to 2000 Americans
               | dying from COVID a day, once cold weather hits the
               | northern states we'll probably see those numbers rise
               | even more.
               | 
               | 3. Thanks to the filibuster reconciliation is the only
               | chance democrats have at passing anything through the
               | senate. If the infrastructure deal fails we'll see none
               | of the campaign promises pass.
               | 
               | 4. Depending on how China handles Evergrande, there's a
               | decent chance that we'll see the stock market tank in the
               | next 6 months.
        
               | munk-a wrote:
               | As Bernie is getting a bit older he might chose this
               | election to stand down as well - but even if a
               | "republican" won the seat it'd be a VT Republican (maybe
               | even Gov. Scott) so that race might be more interesting
               | than it might appear now - but the conclusion is probably
               | going to be pretty predictably liberal.
        
               | munk-a wrote:
               | I absolutely understand what you were saying and I don't
               | think you're incorrect - I just wanted to highlight that
               | the wording was poorly chosen and could easily be
               | misread. I personally have problems with clear
               | communications myself all the time so I just wanted to
               | provide a bit of feedback as to why it was called out as
               | being flamebait - your core statement wouldn't start a
               | flame war - but the way you said it wasn't the best.
        
               | m_ke wrote:
               | I tried to match the tone of the headline in the article,
               | especially the subtitle: "The Biden administration's
               | biggest success has not received enough attention".
        
             | dang wrote:
             | The last sentence of your GP comment was obviously
             | flamebait. That's what we ask people not to post here.
             | Let's not quibble over what counts as "partisan"--all
             | political flamewar is something we're trying to avoid here.
        
               | m_ke wrote:
               | It was not meant to be flamebait, I'm a democrat and
               | Manchin is clearly a corrupt corporate stooge. Here's an
               | Exxon exec confirming on tape that Manchin is his go to
               | guy and they want the infrastructure deal killed because
               | it would raise corporate taxes:
               | https://youtu.be/xs0xAS2mLtg?t=108
        
               | dang wrote:
               | I believe you, but short, intense, name-calling
               | ("corrupt") political battle comments _are_ flamebait. We
               | have to go by effects rather than by intent.
               | 
               | https://hn.algolia.com/?dateRange=all&page=0&prefix=true&
               | sor...
        
         | throwaway_dcnt wrote:
         | If this statement has elements of truth (I mean maybe it
         | does?), may I please see the evidence?
        
           | m_ke wrote:
           | See this comment:
           | https://news.ycombinator.com/item?id=28647021
           | 
           | The $300 per child per month payments are temporary and will
           | expire at the end of the year. Before that the extended
           | unemployment helped a lot of parents by giving them an income
           | and allowing them to stay home and take care of their kids
           | (which is why I said thanks to the previous administration).
           | 
           | The 3.5 trillion "Human Infrastructure Bill" is supposed to
           | be voted on on Monday but it might get gutted further by
           | Manchin and Sinema.
        
       | notJim wrote:
       | Note that many of the administrative hurdles could be overcome by
       | moving the benefit to the Social Security Administration, who
       | already have the data needed. Also, it's been a while since I
       | looked at this, but Republican Mitt Romney had the best proposal
       | out of all the child benefit proposals that were kicking around
       | earlier this year. That the democrats didn't pick up on it is a
       | sad statement about them.
       | 
       | https://www.peoplespolicyproject.org/2021/02/15/who-should-a...
        
         | jessaustin wrote:
         | Poor children don't vote and they don't contribute campaign
         | funds. As implied by TFA, they were only helped this time by
         | mistake.
        
       | SomaticPirate wrote:
       | I'm a bit surprised by these comments. This seems like data
       | driven evidence of a government policy working quite well.
       | 
       | Yet there are people complaining about this causes inflation and
       | is "printing money". The article clearly points out that most of
       | the spending is on essentials and directly contributing to the
       | children's quality of life.
       | 
       | Not the article I would expect to see fiscal hawks on.
        
         | UncleMeat wrote:
         | A lot of people don't care much about the poor and instead care
         | primarily about their own wallet. Whether it works or not is
         | irrelevant to some folks.
        
         | Synaesthesia wrote:
         | What about the trillions airdropped on Wall Street? That was
         | surely also "printing money" ... And it was a lot!
        
         | listless wrote:
         | It's not that it's not working. It's that it's not a
         | sustainable model. Or if it is, we need to cut a LOT of other
         | stuff.
        
           | jeffbee wrote:
           | Our $2000 per capita annual war budget would be a reasonable
           | starting place.
        
           | grecy wrote:
           | It works very well and has been sustainable for many decades
           | in a handful of other countries around the world.
           | 
           | It's simply a question of priorities, and evidently that is
           | not high on the list.
        
           | dillondoyle wrote:
           | Or raise taxes among the top earners, corps, cap gains. Seems
           | worth it to me.
        
         | president wrote:
         | A bug fix can still work well even if you don't address the
         | root cause. But sooner or later it will reveal itself again.
        
         | maxerickson wrote:
         | "fiscal hawks" probably isn't correct.
        
       | riboflavin123 wrote:
       | > depending on how it is measured, somewhere between one in six
       | or one in five children counted as poor
       | 
       | This is an alarmingly high number. I've been primed by media to
       | blame this on an inverse relationship between income and number-
       | of-children (i.e. poor people have many babies, rich people have
       | few babies).
       | 
       | Does anyone have an alternative explanation for the surprisingly
       | high child poverty rate?
        
         | eli wrote:
         | An explanation for why child poverty is so high or why you're
         | surprised that it's so high?
         | 
         | I think the relationship between fertility and income generally
         | goes the other way: the richer you are, the fewer children you
         | choose to have. You can see this broadly by comparing different
         | countries.
         | 
         | There are serious structural problems with the American economy
         | that make class mobility difficult. Two obvious ones,
         | healthcare and child care, should be treated as urgent crises.
         | We have policies that discourage the poor from working. And
         | that's before even getting into the sexism and racism. (The
         | child poverty rate is MUCH higher in female-led households or
         | black households.)
        
         | wolverine876 wrote:
         | Could you provide a basis for this theory? I think the burden
         | is on you to establish your claim, not on others to disprove
         | it. So far, it's baseless, supported only by:
         | 
         | > I've been primed by media ...
         | 
         | The media isn't responsible for what I believe; I am. If I know
         | I'm being "primed", then I don't believe it. Also, I'm not sure
         | what media the parent refers to, but it's much different from
         | what I read.
        
           | riboflavin123 wrote:
           | I am aware that most of my knowledge about income
           | distribution comes via news articles/videos. In the instances
           | where they DO cite sources (which is rare), I have never
           | personally investigated the data behind claims.
           | 
           | That is why I prefaced my comment about being "primed" by
           | media.
        
             | wolverine876 wrote:
             | Then perhaps the question is, 'what causes the high rate of
             | child poverty in the US, can anyone provide some
             | substantive information?'
             | 
             | The claim is baseless and thus not relevant; posting it
             | just spreads a baseless claim, which we have plenty of on
             | the Internet!
             | 
             | > In the instances where they DO cite sources (which is
             | rare)
             | 
             | If it helps, try higher-quality news. The journalism I read
             | always cites sources; it's a rule of serious journalism.
        
               | mikeg8 wrote:
               | Your comments is condescending and counter productive to
               | what was a generally inquisitive question by OP.
               | 
               | Try shedding light instead of nit-picking. Your proposed
               | question is not as superior to OPs as you think.
        
               | AbjectFailure wrote:
               | Just shut the fuck up, you annoying loser. Jesus Christ.
        
           | BeetleB wrote:
           | Commenter's aim is to seek knowledge. He is putting forth a
           | hypothesis, and is seeking alternative theories. If he gets
           | viable ones, he'll put less faith in his hypothesis, or may
           | abandon it altogether.
           | 
           | If one merely finds flaws in his hypothesis, he'll realize
           | he's wrong, but will be no closer to the truth.
           | 
           | Pointing out that he hasn't backed up his theory is
           | reasonable, but it doesn't bring him closer to his goal.
           | 
           | A relevant quote from Carl Sagan:
           | 
           | "If you're only skeptical, then no new ideas make it through
           | to you. You never learn anything. You become a crotchety
           | misanthrope convinced that nonsense is ruling the world.
           | (There is, of course, much data to support you.) Since major
           | discoveries at the borderlines of science are rare,
           | experience will tend to confirm your grumpiness. But every
           | now and then a new idea turns out to be on the mark, valid
           | and wonderful. If you're too resolutely and uncompromisingly
           | skeptical, you're going to miss (or resent) the transforming
           | discoveries in science, and either way you will be
           | obstructing understanding and progress. Mere skepticism is
           | not enough."
           | 
           | He also gave some good examples from the history of science
           | of theories that eventually turned out to be true, but were
           | originally on shaky (or even faulty) grounds for a long
           | period of time. A culture of skepticism would likely have
           | killed those theories. Unfortunately, I noted only this quote
           | and not the examples.
        
         | droopyEyelids wrote:
         | "Poor people have more children" gets by without enough
         | examination.
         | 
         | It's a weird, tautological statement. Only workin adults
         | provide income to a family unit. Children and the disabled
         | members of a household divide that income.
         | 
         | Given the same income, a family with more dependents is sent
         | into poverty by the mathematics of division.
        
           | ip26 wrote:
           | Right, so given this a naive observer might imagine the
           | _rich_ would elect to have more children, and the poor
           | fewer...
        
         | Factorium wrote:
         | 70% of African-American children are born outside wedlock:
         | 
         | https://upload.wikimedia.org/wikipedia/commons/3/36/Nonmarit...
         | 
         | Which is driven by a welfare system that punishes married
         | couples with lower payments (witness the huge rise in out-of-
         | wedlock births since the welfare schemes of the 60s/70s).
         | 
         | 35% of African-American children live in poverty:
         | 
         | https://www.nccp.org/wp-content/uploads/2020/05/wpc10-fig3.j...
         | 
         | Creating a subsect of society which is endlessly reliant on
         | transfer payments to avoid poverty is not a good outcome for
         | society. It would be better to encourage family planning and
         | marriage.
         | 
         | http://marripedia.org/effects_of_out-of-wedlock_births_on_so...
         | 
         | "The evidence is clear and disturbing, being born outside of
         | marriage lowers the health of newborns and increases their
         | chances of dying; it delays children's cognitive (especially
         | their verbal) development; it lowers their educational
         | achievement; it lowers their job attainment; it increases their
         | behavior problems; it lowers their impulse control; it warps
         | their social development; it helps change their community from
         | being a support to being a danger to their development; and it
         | increases the crime rate in their community.
         | 
         | To make the situation worse, the government has instilled
         | powerful incentives in the welfare system which makes
         | illegitimacy a community way of life, particularly in very poor
         | communities. The widespread incidence of illegitimacy in turn
         | passes on all these effects to the next generation in an even
         | more malignant form.
         | 
         | While the government cannot instill virtue, it does not need to
         | subsidize this rejection. Government policies have subsidized
         | illegitimacy, and the evidence of its serious effects are
         | steadily growing. Congress must adopt policies friendly to
         | children. But to do that Congress must first become more
         | friendly to married fathers and mothers."
        
           | nullspace wrote:
           | > Which is driven by a welfare system that punishes married
           | couples with lower payments
           | 
           | Is this true? If you're not married, then doesn't only one
           | person get to claim the benefits? Not benefits x2?
        
         | nescioquid wrote:
         | > poor people have many babies, rich people have few
         | babies...Does anyone have an alternative explanation for the
         | surprisingly high child poverty rate?
         | 
         | The question makes me think of Malthus. He argued that
         | population grows geometrically, while agricultural production
         | is linear, but the major restraint on reproduction would
         | chiefly be access to food. You could extend that to say that
         | the poor will be less numerous, but feeding them will cause
         | their population to rise and result in inflation (I think that
         | was apropos the Poor Laws).
         | 
         | That was the 18th century thinking, at any rate. Some
         | explanations I've encountered for why it doesn't work out that
         | way involve examining other checks on reproduction which
         | include things like education level and rights of women, and
         | rate of child mortality. I think you raised a great question
         | that's worth examining -- hopefully someone else can shed light
         | on the subject.
        
         | netizen-936824 wrote:
         | Iirc its correlated with education level
        
       | DonnyV wrote:
       | This is just PR from the Economists, so that we think everything
       | is fine. Its NOT! Just Google and find the mountain of evidence
       | how the US fails its children and families.
        
         | x86_64Ubuntu wrote:
         | Mind you, that "current reducing != ended completely". While we
         | are nowhere near being as performant as a Western European
         | state, we are taking the correct steps even if for the wrong
         | reasons (Covid pandemic).
        
         | [deleted]
        
         | 45yu56bwedfg wrote:
         | That's because Keynesian economists have studied absolute
         | delusion. Thankfully we now have an Austrian economic system
         | under Bitcoin that is fundamentally sound. We'll see how that
         | plays out.
        
         | koboll wrote:
         | "Things are getting substantially better" doesn't mean
         | "everything is fine".
        
         | [deleted]
        
         | lkbm wrote:
         | We don't need to Google to find the mountain of evidence. The
         | article starts out by saying the US has exceptionally high
         | child poverty and spends relatively little trying to solve it:
         | 
         | > America has long tolerated an anomalously high rate of
         | poverty among children relative to other advanced countries--
         | depending on how it is measured, somewhere between one in six
         | or one in five children counted as poor. The reason why is not
         | mysterious. The safety-net has always been thinnest for the
         | country's youngest: America spends a modest 0.6% of GDP on
         | child and family benefits compared with the OECD average of
         | 2.1%.
         | 
         | It criticizes the roll-out of the program:
         | 
         | > That does not mean that the roll-out has been flawless. To
         | reduce administrative barriers, the credits are supposed to
         | flow automatically from the Internal Revenue Service (IRS) to
         | family bank accounts. However, a significant minority of
         | American families have not filed tax returns in the past two
         | years--meaning that eligible children are missing out.
         | 
         | And reports that it's currently scheduled to expire despite
         | great success:
         | 
         | > All this progress is currently slated to be time-limited,
         | though. Democrats in Congress only agreed to implement the
         | enhanced payments for one year.
         | 
         | No one read this article and thought "everything is fine". It's
         | about how things are terrible and making it clear that we need
         | to fund programs that help.
        
         | jcranmer wrote:
         | Considering that the article points out the US's abnormally
         | high child poverty rate, the difficulty the US has in actually
         | getting the new child tax credits to those to whom it is
         | warranted (since you have to file a tax return to get it, and
         | the very poorest don't file tax returns), points out that the
         | credits are only temporary and their permanent extension is not
         | guaranteed, the article comes across not as "everything is
         | fine" but rather as "this is a _start_ , not the _end_ --now
         | keep at it!"
        
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