12.8: Antipoverty Spending
Cap and reform antipoverty spending. Other Information:
Capping and Reforming Antipoverty Spending. Since 1990, federal antipoverty spending, including Medicaid, has expanded 236
percent faster than inflation, from $190 billion to $639 billion (an increase of 2.2 percent of GDP). Antipoverty spending
has grown as much as Social Security, Medicare, defense, and education spending combined. Overall, the federal government
spends approximately $28,000 per family with children in the bottom third of the income table without encouraging independence.
Many of the programs do not include enforced work requirements and continue to reward illegitimacy and other destructive behaviors
that block the road to independence. Once the unemployment rate drops back to normal levels (projected in 2014), the Heritage
plan returns total federal antipoverty spending to its 2007 level (adjusted for inflation) and then caps total spending growth
at the inflation rate (using the medical inflation rate for the health care portion). Congress or states could shift spending
among antipoverty programs to increase effectiveness as long as total spending does not exceed the cap. This cap and flexibility
will force lawmakers at all levels to reexamine the size and goals of the welfare state and tailor assistance more efficiently
to help families escape poverty and dependence and achieve independence.
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