The American Recovery and Reinvestment Act (ARRA) of 2009 contained temporary policy changes to offset or lessen the negative effects of the economic recession.
These policies included provisions increasing refundable tax credits for families and larger nutrition assistance benefits for those enrolled in the program.
Researchers at the UW-Madison Institute for Research on Poverty (IRP) analyzed the effect of the tax and nutrition assistance portions of the ARRA on poverty in Wisconsin, using a broader, more complete measure of poverty developed at IRP.
The new Wisconsin Poverty Measure [pdf] developed at IRP by Professor Timothy Smeeding, Julia Isaacs, and Joanna Marks revealed how the existence of refundable tax credits and non-cash benefits (particularly nutrition assistance) helped reduce poverty, even before the enactment of the ARRA.
A recent brief on their findings demonstrates that the 2009 expansions of the safety net under the ARRA helped mitigate poverty in Wisconsin even more than the existing tax credit and nutritional assistance programs extant in 2008.
The effect was greatest on families with children, in accordance with the design of the policy changes to help the most vulnerable citizens.
For more information:
- Fast Focus: “The effects of the 2009 ARRA on poverty in Wisconsin” Institute for Research on Poverty, University of Wisconsin–Madison, December 2010
- UW-Madison researchers release Wisconsin Poverty Report: New measure tells new story University of Wisconsin–Madison - September 2, 2010
- Wisconsin Poverty Report: New Measure, Broader View Institute for Research on Poverty, University of Wisconsin–Madison, September 2010
- Wisconsin Poverty Report: Methodology and Results for 2008[pdf] Institute for Research on Poverty, University of Wisconsin–Madison, September 2010