Here’s a development that could have significant implications if Barack Obama wins the presidency: He has endorsed the idea of updating the federal measure of poverty, a proposal that is slowly gaining some traction after years of being confined to quiet talk among poverty experts.
New York mayor Michael R. Bloomberg called for a new poverty measure this week, and Democratic Rep. Jim McDermott of Washington held a hearing on his own proposal yesterday in the House Ways and Means Subcommittee on Income Security and Family Support, which he chairs.
But Obama’s support for the idea has the potential to advance the idea significantly, if he wins the election and pushes for it aggressively.
“Senator Obama knows that the federal poverty guidelines, which were developed decades ago, simply do not take into account the rising costs of child care, health care, transportation, and housing that make it difficult for many families to make ends meet in our globalizing economy,” campaign spokesman Nick Shapiro told me yesterday.
“Senator Obama believes that we should modernize the federal poverty guidelines to more accurately reflect the costs of living and the economic pressures on American families. Without an accurate measure of poverty and economic insecurity in America, we will not be able to fully tackle the effects of these problems on our children and families.”
John McCain hasn’t taken a position on the idea yet, campaign spokesman Taylor Griffin told me this morning.
The method of calculating the federal poverty line has been a back-burner issue for years among poverty experts because it hasn’t been updated since the 1960s. At that time, food cost a third of a typical family’s budget, which isn’t true anymore — it’s only about one seventh of a typical family’s costs now. At the same time, though, housing and work-related costs have become much more expensive than they were when the poverty guidelines were drawn up.
So the use of the outdated poverty measure, according to experts who testified at McDermott’s hearing yesterday, has had the paradoxical effect of underestimating a modern family’s expenses while also underestimating the amount of help they get from antipoverty programs like food stamps, housing assistance and the Earned Income Tax Credit.
The current measure “simply does not reflect this common sense understanding of what it means to be poor in 2008,” Douglas W. Nelson, president and chief executive officer of the Annie E. Casey Foundation, testified at yesterday’s hearing.
Instead, Bloomberg called for a new measurement, based on a 1995 proposal by the National Academy of Sciences, that would count the benefits of the antipoverty programs but also account for the growing costs of housing, transportation, utilities and out-of-pocket medical expenses. McDermott’s bill would require the Census Bureau to come up with a similar standard.
(Update: Bloomberg praised the Obama campaign’s announcement in a statement released Friday night. “Poverty is one of the great challenges of our day and I applaud Senator Obama’s campaign for standing up for a more honest way of measuring it,” Bloomberg said. “Without an accurate look at our nation’s problems, it is hopeless to expect to address them.”)
Changing the federal guidelines could, in theory, have a major impact on how many people are eligible for a wide range of programs that are tied to the poverty rate, from Medicaid and the State Children’s Health Insurance Program to Temporary Assistance for Needy Families and food stamps. That’s probably the biggest reason the idea has never gotten off the ground. (McDermott says any eligibility changes wouldn’t be automatic in his bill; they’d be decided on a program-by-program basis.)
And even with a president’s support, there would be years of inertia to overcome. But now that it has Obama’s backing, the idea can’t be dismissed as just another academic pipe dream, either.