Fighting Poverty in America
The US is a global outlier in tying much of its social safety net to employment, with social-welfare spending averaging just 16% of GDP, compared to 23% in Europe. With inequality and income distribution looming large in the run-up to November’s presidential and congressional elections, it's time for the US to assess what works.
BERKELEY – From 2005 to 2014, the real income of two-thirds of households in 25 developed economies was flat or fell. Only after very aggressive government intervention in taxes and transfers have some countries been able to hold families at least even.