Redefining poverty
Plus: Lower corporate taxes mean more economic growth; considering calls for more police car chases; and whether higher education as we know it is obsolete
Time to rethink the meaning of poverty: The Biden Administration is considering changing the way policymakers measure poverty, and the proposed new measure could dramatically increase eligibility for and spending on social welfare programs. In a new paper for FREOPP, Senior Fellow Michael Tanner digs into the different measures currently being debated, as well as the history of America’s approach to setting poverty standards, the challenges they pose, and the key questions we should ask as we weigh a new standard. He also discusses the importance of bringing self-reliance measures into anti-poverty policy. Ultimately, Michael makes the case that it is urgent that Congress revisit the government’s definition of poverty and develop a more holistic approach that emphasizes helping poor families achieve self-sufficiency.
→ Hear Michael discuss the current debate over redefining poverty and his research for FREOPP on C-SPAN.
The Tax Cuts and Jobs Act spurred investment and hiring: During the debate over 2018’s Tax Cuts and Jobs Act, which slashed corporate tax rates from 35 to 21 percent, economists were divided over the prospective benefits of the legislation. Some, including FREOPP Research Fellow Jon Hartley, argued that tax cuts would boost economic growth; others expected limited or even no benefits. Six years later, Jon reviews the evidence and writes in National Review that the legislation boosted fixed capital investment such as purchases of property and equipment, as well as hiring. At the same time, revenues fell less than many commentators and academics expected. This suggests that policymakers should favor other forms of revenue over corporate taxation if they want to boost America’s economy and make us more globally competitive.
Rethinking police pursuit rules: Facing an increase in violent crime and a spike in carjackings—nearly 6,400 vehicles have been stolen so far in 2023—D.C. Mayor Muriel Bowser has proposed strengthening the power of the District’s police department to engage in vehicle chases. FREOPP Senior Fellow Jonathan Blanks notes that it is important to weigh all the information before changing policy on police chases. Data strongly suggest that limits on chases increase public safety, but they do so at a cost of letting fleeing offenders get away. These competing interests raise serious questions about whether victims and D.C. residents will be better off with a policy that resumes chases and what measures might do the most to deter future thieves. Jonathan recommends that policymakers develop best practices for police pursuits that limit chases to serious crimes, giving officers clear guidance and the flexibility to deal with circumstances that legislation cannot predict.
Is higher education obsolete? An increasing share of young people are deciding to forego college due to its high costs and uncertain benefits. At FREOPP’s Freedom & Progress conference in November, FREOPP Senior Fellow Preston Cooper, FREOPP Visiting Fellow Annie Bowers, Opportunity@Work Senior Vice President Audrey Mickahail, and Arizona House of Representatives Chief of Staff Michael Hunter gathered to discuss what we can do to make higher education more affordable, as well as the alternative models that can enable Americans to achieve economic success without a traditional 4-year degree.
In case you missed it: Check out FREOPP President Avik Roy’s recap of the key takeaways from Freedom & Progress 2023 and the rewards of gathering together to advance an inspiring mission.
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