Higher Earnings Cut Support for Poor Families

I’ve spoken before of the tricks conservatives have embedded in the welfare regs to make the poor ineligible for help the instant they raise their heads above water. The National Center for Children in Poverty has released a study done in Pennsylvania that shows that those tricks, developed under Reagan, are still very much in use.

About 85 percent of low-income children have parents who work, and most have at least one parent working full-time, year-round. Nonetheless, many of these parents are unable to afford basic necessities for their families, such as food, housing, and stable child care. Even a full-time job is not always enough to make ends meet, and many parents cannot get ahead simply by working more. As earnings increase—particularly as they rise above the official poverty level—families begin to lose eligibility for work supports. At the same time, work-related expenses, such as child care and transportation, increase. This means that parents may earn more without a family experiencing more financial security. (1) In some cases, earning more actually leaves a family with fewer resources after the bills are paid.

The Family Resource Simulator, developed by the National Center for Children in Poverty, illustrates how this happens. This web-based tool allows users to chart a hypothetical family’s progress in the workforce and to see how public policies reward and encourage employment—and sometimes discourage parents from earning more.