Sunday, September 9, 2012

On Poverty And Government

Economist Jared Bernstein brings to our attention an illuminating graph showing data from the Organization for Economic Cooperation and Development (OECD), a body made up of the world's 20 most advanced economies. What the graph shows is that all 20 advanced countries alleviate poverty to some extent by redistribution payments.

The poverty rate of the United States before redistribution is 26.3%; very close to the 26.4% average of the other 19 member states.

After redistribution, however, is a completely different story. The poverty rate of American citizens after taking redistribution into account is at the bottom - 20th among OECD countries.

"We're number 20" isn't such an inspiring chant. Here's the graph:

http://jaredbernsteinblog.com/wp-content/uploads/2012/09/inter_pov.png

We're the richest country in the world and that's the best we can do?

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