The editors of the 4% Growth Project asked Bush Growth Fellow Ike Brannon to look into 10 things that would happen if the U.S. economy...
The editors of the 4% Growth Project asked Bush Growth Fellow Ike Brannon to look into 10 things that would happen if the U.S. economy grew at 4% each year in real terms for 10 years. We will unveil one growth fact each week. To read all previous growth facts, click here. Growth Fact #5 of 10: If the economy grew at 4% per year, an additional 3,000,000 people would rise out of poverty over the next decade, reducing the burden on government safety nets by $200 billion.[i]
[i] This amounts to a 7% reduction in the number of Americans (46.2 million) currently living below the poverty line, according to the U.S. Census. Those who emerge from poverty enjoy better health, longer lives, and a generally higher standard of living. As a consequence, government and private charities can redirect their energies toward other economically beneficial endeavors. See Gittell, Ross & Edinaldo Tebaldi: “Poverty in U.S. Metropolitan Areas: What are the Key Determinants and What is the Role of Local Fiscal Structure?” Public Finance and Management 10(3), 2010. 2010 poverty figures are from the U.S. Census Bureau.
