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Poverty Reduction Programs Do Not Reduce Poverty

These programs are not designed with correct assumptions about human nature.

Over the last 50 years, the proportion of Americans living in poverty has remained virtually unchanged. In 2023, 11 percent of American’s lived below the poverty line. In 1973, that number was also 11 percent.

During that same period, government spending on poverty reduction programs increased sixfold. In 1973, the federal government spent $5,000 per person in poverty each year. By 2023, that number had grown to over $30,000 per person in poverty and continues to grow today. Today, the federal government spends six times as much money on poverty reduction programs as it did 50 years ago, and the same number of people are impoverished. By the end of fiscal year 2025, the federal government is projected to spend over $1 trillion on poverty reduction programs.

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