When contemplating the rising poverty rate in the face of the economic downturn, it’s important to keep in mind that one crucial quirk of the way the Census Bureau calculates the poverty rate is that the value of things like food stamps and Medicaid isn’t counted in considering whether a family is above or below the line. If the government enacted a pure cash transfer, like higher EITC benefits, that would show up as lifting some families out of poverty. But if the government increases spending on non-cash anti-poverty programs, then whatever benefits those programs have doesn’t count unless they indirectly serve to boost the recipients’ market wages.
From an unlikely source
