Welfare and Poverty: Following the Money

One of the central principles of Catholic Social Thought is the preferential option for the poor, that is, the idea that special attention ought to be paid to the condition of the poorest and most vulnerable members of society. For many, the preferential option for the poor justifies the creation and expansion by the government of so-called welfare programs, in which the government spends tax dollars in order to alleviate poverty. Others object to at least some of these programs, arguing that they are ineffective, create perverse incentives, or crowd out alternative solutions provided by private groups and voluntary associations. I don’t propose to try and settle these disputes here. But it is worth noting just how much (or how little) of spending on these welfare programs actually goes to the poorest members of society.

For example, in 2006 the Federal government spent around $740 billion on programs designed to increase income mobility. Yet of that $740 billion, only roughly a quarter was spent on people in the bottom 40% of the income distribution: