Poverty Rate and Welfare Spending

I was looking at Welfare spending as a percent of GDP from the following site and wondered if this data were somehow correlated with US poverty rate from this site.  The results were startling!  Starting in the early 70’s, Welfare spending and Poverty rates rise and fall in lock step.  A picture (or graph in this case) is really worth a thousand words.  Poverty rate percentages are on the left Y-axis and Welfare as percent of GDP are on the right axis.

You’ll recall that President Johnson declared a war on poverty and launched his “Great Society” programs in the late 60’s and early 70’s.  Mission Accomplished?  I don’t think so.

Notice that Welfare spending increased in the early 70’s BEFORE the Poverty rate started to rise.  Also notice the big increase in Welfare spending over the last 2 years.  Entitlement spending increases didn’t lower the poverty rate in the 70’s and we shouldn’t expect anything different now.

Advertisements
This entry was posted in economics, Entitlement Programs, politics. Bookmark the permalink.

7 Responses to Poverty Rate and Welfare Spending

  1. Pingback: Income Inequality | cosmoscon

  2. Pingback: Conservatives Have Been Fighting With One Arm Tied Behind Our Backs | cosmoscon

  3. Pingback: Is This How A Leader Acts? | cosmoscon

  4. Pingback: Our Problem Is Simple | cosmoscon

  5. Pingback: This is How Liberals Think | cosmoscon

  6. Pingback: A Failure to Communicate | cosmoscon

  7. Pingback: Robert Reich – Ignorant or Evil? | cosmoscon

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s