War on Poverty

December 11th, 2006 by Senior Editor: Jeff

The Goldwater Institute has released a new report on Poverty Trends (using Census Data).  Or, "how to win to win the war on poverty."  Conclusion? Low tax and low spending state governments saw overall decreases in poverty, while high tax and high spending governments actually saw increases in poverty.

Some highlights:

The 10 states that spent the least had an 11.2% decline in poverty rates and the 10 states that spent the most had a 7.3% increase in poverty rates.

The 10 states with the lowest tax-levels saw a 13.7% decline in poverty rates and the 10 states with the highest tax-levels had a 3.04% increase.

It's an issue of freedom and economics not social engineering.  "Private sector job growth is the most effective antipoverty program."  High tax rates drive individuals and businesses away, whereas low tax rates attract them.  Redistributing wealth is not how you raise people out of poverty, you just have to give them every opportunity to succeed.

By comparison, Mississipi, Minesota, Kentucky, Iowa, Arkansas all had big decreases in poverty (up to 22%). Rhode Island, D.C., Connecticut, California all saw large increases in government (up to 29%!).  



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