From 2009-2013, one in five New Yorkers lived below the poverty line. This amounts to 1.7 million poor people living in New York City households. Research by the New York City Center for Economic Opportunity (CEO) shows that the City’s poverty rate declined slightly between 2005 and 2008 but then increased between 2008 and 2012. The CEO analysis also shows that poverty would have been even higher without government policies such as refundable income tax credits and housing subsidies.
The question we are now faced with in New York City (and around the country) is this—how do we enhance or create new government policies to further reduce poverty? A groundbreaking new study finds that in fact we could reduce poverty in New York City by as much as 69 percent.
Commissioned by the Federation of Protestant Welfare Agencies (FPWA), Catholic Charities of the Archdiocese of New York, and UJA-Federation of New York, the study examines the potential impact that select antipoverty policies—alone and in combination—could have in reducing poverty in the City. This partnership is born out of our shared values and traditions of caring for people in need; the unparalleled reach of our combined networks in helping all New Yorkers; and a fundamental belief in the God-given dignity and potential of every human being.
We examine policy reforms related to transitional jobs, minimum wage increases, earnings supplements, tax credits for seniors and persons with disabilities, increased SNAP benefits, guaranteed child care subsidies, and increased housing vouchers. An analysis by the Urban Institute tested the policies for their individual impact, as well as the effects of three different policy combinations with varying levels of participation.
The individual policies reduced poverty by 1 percent to 26 percent, but when the policies were combined they had a far greater effect: Combination 1 in the chart above reduced poverty by 44 percent, to 12.1 percent; combination 2 reduced poverty by 54 percent, to 9.8 percent; and combination 3 reduced poverty by 69 percent, to 6.7 percent.
The evidence is clear. Public policy must be at the center of efforts to fight poverty, and as a nation, we need to adopt policies that invest in low-income workers and their families while also removing barriers to economic stability. Ending poverty will require a significant commitment of city, state, and federal resources. But there is also ample evidence that these investments not only improve the lives of individuals and strengthen their communities, they also ultimately reduce government spending.
There is plenty of talk these days about the importance of reducing poverty and improving economic mobility. Our new study shows what a comprehensive plan might look like and how we can get the job done.