Wednesday, September 29, 2010

US - soaring costs of anti-poverty programmes

This table is from the Cato blog.

Obviously the deep US recession has contributed to soaring costs but those areas equivalent to the DPB (TANF), IB abd SB (SSI) are reasonably contained. That is because there is a much stronger focus on providing assistance in kind rather than in cash.

And Medicaid, public health provision for uninsured low income working age Americans, makes up most of the absolute increase (contrary to what many leftists believe - that there is no public health provision in the US). The figures relate only to federal spending. States spend on their own anti-poverty programmes. In the case of TANF, from memory, spending equates to around 70 percent of what the federal government puts in.



A comparison to NZ is difficult.

Cash spending (minus Super) has risen from $7.8 to $12.9 billion (non inflation adjusted) but it is impossible to extract health spending on low income families alone. Housing (not including the accommodation supplement which comes under cash spending) has risen from roughly $68 to $365 million. The figures are based on Core Crown expenditures.

Matchbox calculations, if those totals are divided by population NZ spends around $3,000 per head (excluding health) against the US at $2,100 but remember that the US spending is only federal and US dollars are worth more. Their poverty threshold is around US $11,000 for one person. A large chunk of left liberals seem to think NO money gets spent on the poor in the US.

1 comment:

Anonymous said...

Texas dole is about $60 dollars Per month

NZ Dole is something like $250 per week

That explains why the US is the worlds most dynamic economy bar none - while NZ is the worlds most dynamic economy after North Korea


Oh - and the Texas dole lasts only three months - after that, you starve