Is it Possible to Reduce Economic Hardship for American Families?
Given its wealth, the U.S. had unusually high rates of child poverty and income inequality, even prior to the current economic downturn. These conditions are not inevitable — they are a function both of the economy and government policy. In the late 1990s, for example, there was a dramatic decline in low-income rates, especially among the least well off families. The economy was strong and federal policy supports for low-wage workers with children — the Earned Income Tax Credit, public health insurance for children, and child care subsidies — were greatly expanded. In the current economic downturn, it is expected that the number of poor children will increase by millions. Other industrialized nations have lower poverty rates because they seek to prevent hardship by providing assistance to all families. These supports include “child allowances” (typically cash supplements), child care assistance, health coverage, paid family leave, and other supports that help offset the cost of raising
