Alternative Measure of Poverty Shows Value of Recovery Act

by | May 5, 2011

Home 9 Family Economic Security 9 Alternative Measure of Poverty Shows Value of Recovery Act ( Page 12 )

Researchers at the University of Wisconsin have developed a measure that allows them to more completely capture the effect of the Recovery Act on Wisconsin poverty levels.

By official measures, poverty in Wisconsin rose from 10.2 in 2008 to 12.4 percent in 2009, according to the report. But the official measure of poverty takes only cash income into account. This means that non-cash income like tax credits or food stamps – both of which were significantly expanded by the Recovery Act and both of which can make a big difference to a family’s bottom line – are not considered when determining poverty status.

The new measure of poverty used in the report shows that the Recovery Act sheltered state residents from the worst effects of the recession. For more information, including a description of the new measure, read the newest post at the Wisconsin Budget Project blog.

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