You can't manage if you don't measure

That's a basic tenet of Management 101. However, it is imperative that you measure the right things. The Hamilton Project has published a paper which questions how we measure poverty in this country.

The authors, Rebecca Blank and Mark Greenberg, point out that we still calculate the poverty line the same way we did 40+ years ago. The original calculation was based largely on the price of food, but, as we know, food is a smaller part of one's budget today than it was in the 1960s. Also, the original measure was lacking from an income standpoint; it did not consider tax benefits and subsidies from the government such as food stamps and heating assistance. And, finally, the measure ignored variations in the cost of living across the country.

Blank and Greenberg propose a measure that includes food, clothing, housing and utilities. On the income side they want to consider after tax income as well as government subsidies. And, of course, the measure should take into account the cost of living across the country. Interesting points.