Poverty and Policy in the United States During the 1990’s

Abstract

This chapter examines poverty trends in the United States during the 1990’s and describes how public policies have responded to, and affected, these trends. Although poverty rates have declined during the second half of the 1990’s, they rose during the early part of the decade; in fact, the early 1990’s saw the highest rates of child poverty in 30 years. Poverty rates were especially high for minorities (African-Americans and Hispanics), young children, and single-parent families. The 1990’s also saw a dramatic shift in public policies directed towards low-income single-parent families. Over this period, cash assistance to such families has been replaced by temporary programs with strict time limits and work requirements, while health insurance coverage for such families expanded. Additionally, several economic incentives have been implemented to make employment more financially rewarding for low-income families. These changes, combined with a robust economy, resulted in dramatic decreases in the number of families receiving public assistance, and large increases in the number of employed single mothers during the 1990’s. Although poverty rates among single-parent families have declined during this period, they did not decline as quickly as the number of people leaving the public assistance rolls.