Why a national plan to end poverty?

In 1964, the United States government declared war on poverty. In his State of the Union address, President Johnson said the following:

“This administration today, here and now, declares unconditional war on poverty in America…we shall not rest until that war is won...we cannot afford to lose it... It must be won in the field, in every private home, in every public office, from the courthouse to the White House. The program I shall propose will emphasize this cooperative approach to help that one-fifth of all American families with incomes too small to even meet their basic needs…”

Fifty-seven years later, we are still “fighting” this war, with more than one-fifth of all Americans still living without enough to get by on their own.

The reasons are many - a few follow below - and they highlight the need for a new approach, one that engages every American:

1. We do not measure poverty correctly, never mind address it appropriately.

The US poverty thresholds used today were derived in the 1960s by multiplying a subsistence food budget by a factor of three. Based on consumption data from the mid-1950s, these thresholds have been adjusted only for inflation since they were established.

In 2021, the poverty threshold for a family with two adults and two children was approximately $26,500. To have one standard for each family size, no matter where people live in the United States - thus, ignoring the cost of living there - has always led to a dramatic misunderstanding and underestimation of how many people in our nation are struggling to make ends meet. And that had had fatal effects on individuals and families that had known only poverty for generations, before and certainly, since the War on Poverty was declared.

The Shared Humanity Project has developed National Poverty Plan Standards (NPPS) to understand better what people need to get by. The standards, based on 50% of local median income, consider local costs of living and more accurately capture economic needs than the federal poverty line. They are easy to compare across jurisdictions, calculate and understand.

These are more workable numbers for a national plan, still well above the federal levels used by our government but below many other calculations. Moreover, these are standards on which we can all agree in coming together to better address poverty for our fellow Americans rather than continuing to have partisan debates about it.

Please see our data methodology paper for details on how we developed the NPPS.

2. We have relied heavily on the government to solve the problem, and this has two main drawbacks:

The government’s role in society is an oft-argued issue. Where most of us agree that its most effective utility is to correct for market failure. When the sectors that comprise our society do not produce fairness, the government has a role - a role, not the only one or the main role.

Government can also provide funds to people to help with basic needs, items, transportation, housing, and other issues. Still, when our main approach is to give people money, we need to understand the nuances and underlying causes of poverty, namely, lack of opportunity.

We also absolve ourselves and others of responsibility. Responsibility for and commitment to one another strengthens our country and always has. Coming together to solve problems is when we are at our best. Pointing fingers or accentuating our differences is when we are at our worst.

Second, there is too much innovation in the business sector for it not to be a leader in solving poverty. And there is too much readiness in the faith sector for it not to be involved. Educational institutions, health care providers, and especially those with lived experience have lead roles to play, in addition to the philanthropic and nonprofit sectors. And if you are not in one of those, you and your family have a lead role to play. In fact, you can find a robust list of suggested actions - no matter who you are or what you do - here in our Action Guide.

The Shared Humanity Project’s National Plan to End Poverty guides every person, and our data analysis and presentation allow for true data-informed decisions on how and where to act.

The Action Guide has more than 300 suggested actions. The more of us who use the guide, the more we will see poverty decline. It is that simple.

It is time for individuals and a nation to show what is possible.

There is a lot of energy around justice today. Let’s take that to its rightful end - empowering and supporting people who are the most vulnerable among us. Whatever actions you are moved to take, no matter your political or social perspective, let’s support those who have known only poverty from birth, who live each day in economic instability, with all the vulnerabilities that come with that.

The national plan is you, whoever you are and wherever you live. It is you looking beyond politics and the differences we too often highlight in our country. It is about our shared humanity.