Focus is on “strategic, human-centered support”
Mark Farley, the Executive Director of the Upper Cumberland Development District, recently sat down with Scott C. Miller, an anti-poverty poverty leader on Miller’s Poverty Solution podcast.
Farley asks what he calls the “trillion-dollar question.” What does child poverty cost America?
From a social media post by Farley:
A 2015 study revealed a staggering truth: child poverty costs the U.S. economy $1.03 trillion—or 5.4% of our entire GDP (McLaughlin & Rank, Washington University, 2018). With child poverty rates now higher than 2015 levels, today's costs are likely significantly greater.
“If a child is raised in poverty,” said Miller. “As an adult, they typically create a lot of concern and liability for society. There is evidence that it is somewhere in the 500 billion to $1 trillion worth of fallout,” said Miller. “So, it translates down to about $50,000 per head. So, when you think about it, how much should we spend on supporting a family completely out of poverty? If an average family is a mom and two kids or 2 parents and two kids, I’d say $200,000, you break even. Yearly, it just keeps paying in perpetuity to teach people and support them to get off public assistance. But they need to be incentivized. …”
Miller continued.
“Your research shows there are almost 75 different programs that people could choose from, and, so now they are in transitional Medicaid … Do they even know they are in transitional Medicaid? Our research shows, maybe not. Maybe they don’t even know they have one more year to figure this out and they’re off,” he said.
According to the post there is a cascading effect that shrinks our entire economy, including $294 billion in reduced future earnings for adults who grew up poor and billions more in health care costs, crime and social services. What’s the solution?
According to Farley, “When COVID relief expanded the Child Tax Credit and other supports, child poverty plummeted from 12.6% to just 5.2% in 2021 (U.S. Census Bureau, SPM). The moment those programs expired poverty shot back up to 12.4% in 2022 and 13.7% in 2023 (PGPF, 2024).”
Empower Upper Cumberland, a local program that hopes to improve the child poverty situation, takes a different approach than the 75-plus “disconnected programs” nationally, according to Farley.
The focus is on “strategic, human-centered support that invests in families directly.”
“The results? Participants crossing poverty lines within months, not years. Families building wealth, not just surviving. The U.S. maintains the highest child poverty rate among wealthy nations (20.8% vs. 11.2% average) (OECD, 2022), but communities like ours are showing there’s a better way,” according to Farley. “We know what works. We know what inaction costs. When will we choose to invest in solutions instead of managing consequences?”
To listen to the full podcast, visit HERE or HERE.
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