Surviving Poverty in a Post-Welfare Reform America

Abstract

This review of $2.00 a Day: Living on Almost Nothing in America, by Kathryn J. Edin and H. Luke Shaefer discusses their research and findings regarding the poorest of the poor in post-welfare reform America. This thoroughly researched work presents a stark picture of modern poverty - today, more than 1.5 million families, including more than 3 million children subsist on less than $2 per person per day. Their policy prescriptions would help raise many of the poorest from hopelessness inflicted by welfare reform in the 1990s. Tax reforms including incentives for job training could be a significant piece of the puzzle to lifting those living in almost unimaginable poverty to a more acceptable standard of living.

Keywords: EITC, poverty, tax credit, employment tax incentives, welfare reform

JEL Classification: A13, D13, D63, K34