The Safety Net is Good Economic Policy

What Rep. Paul Ryan Gets Wrong About the War on Poverty

— By Sarah Ayres

Republicans in the House of Representatives released a report in February that relies on a misleading and incomplete review of social-science literature to paint the nation’s anti-poverty programs as largely ineffectual and counterproductive. Unfortunately, the review is so riddled with inaccuracies that many of the leading academics cited in it have publicly accused Rep. Paul Ryan (R-WI), chairman of the House Budget Committee, of misrepresenting their work. In reality, there is little evidence to support the report’s conclusion that federal programs exacerbate poverty by creating disincentives for people to work.

Rep. Ryan’s report relies on a combination of overstating the evidence, ignoring relevant studies, and simply misrepresenting the research to make the argument that the safety net creates a “poverty trap.” This issue brief reviews economic research on the effectiveness of anti-poverty programs; a significant body of research demonstrates that not only have anti-poverty programs successfully raised millions of families out of poverty, but they also increase the economic mobility of recipients and support broader economic growth.

Read more here.

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The Ryan Budget Is a Broken Record of Failed Trickle-Down Economics

By Anna Chu and Harry Stein

For the past three years, House Budget Committee Chairman Paul Ryan (R-WI) has been trotting out the same conservative, top-down policies that have failed the nation’s middle- and working-class families, seniors, and the economy. The House Republican budget is built around the tenet that nearly everyone else must sacrifice in order to continue to give billions of dollars in tax breaks to millionaires, big corporations, and Big Oil. At every turn, the House Republican budget reveals its vision of an economy and government that only works for the wealthiest individuals and special corporate interests at the cost of everyone else.

Now for the fourth consecutive year, the House Republican budget proposes dismantling traditional Medicare and slashing investments that drive our economy, all while cutting taxes for the rich and protecting taxpayer subsidies for big businesses and oil companies. The American people have seen this before, and we know how it ends—with millionaires, big corporations, and Big Oil as the only ones who are better off. Everyone else gets left behind, and our economy only gets weaker. Read more.