Poverty rate in U.S. drops due to welfare program expansion

 Low-income households are increasingly relying on government welfare and entitlement programs rather than earnings from jobs, according to a report from the Congressional Budget Office (CBO). The report compares data from the Distribution of Household Income reports and the Official Poverty Measure, showing that in 2021, Americans below the poverty line received about 25% of their income from work, down from 60% in 1979.

Although poverty rates have decreased from 13. 3% to around 3. 5% after inflation adjustment, this decline is largely due to increased government benefits for low-income families, including welfare programs, Social Security, and unemployment insurance. The U. S. invests over $1 trillion in more than 80 such programs.

Chairman Jason Smith of the U. S. House Ways and Means Committee commented on the CBO's findings, noting that while material hardship has been alleviated, the welfare system does not promote the dignity of work. He pointed out that unmarried households with children had the highest percentage of income below the poverty line. Smith suggested that welfare programs should have stricter work requirements to encourage job seeking and help Americans achieve independence. 

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