Children of the Great Collapse

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Wed, 2013-05-29 13:29

The stimulus was great for poor kids while it lasted. Now even bare-bones aid is at risk.

-Jared Bernstein

 

 

 

 

 

 

 

 

 

 

 

 

 

Here’s a piece of good news of which you might not be aware: The U.S. safety net performed a lot better than you thought during the recent downturn, which was the deepest since the Depression. Thanks to expansions to the Child Tax Credit, the Earned Income Tax Credit, food stamps, and unemployment insurance—all beefed up by the $840 billion Recovery Act—the safety net almost wholly mitigated the rise in child poverty. Even middle-income households saw most of their income losses substantially offset by tax and transfer policies that sharply ramped up to help them.

That’s the good news. The bad news is that most of the Recovery Act’s outlays have now been spent, and pressure to reduce deficits leaves other spending on children and families under assault. READ MORE