Despite decades of a war on poverty that came with proliferating programs and ballooning budgets, the official poverty rate in the United States has stubbornly refused to break from its narrow historical range. This failure stems largely from the methods used to pursue the alleviation of poverty. Policymakers should turn to block grants to states, a policy that has real-world empirical support and that would alleviate the knowledge problem suffered by the federal government. States, in turn, should administer income support programs tailored to the individual causes of poverty, implementing work requirements for people who are temporarily disadvantaged and providing direct income to people who are truly unable to work.
Ex-Im Bank advocates emphasize its importance to small businesses and economic growth. A new analysis of government data reveals that Ex-Im Bank’s top 10 overseas buyers are large corporations that primarily purchase exports from multinational conglomerates. Ex-Im Bank’s small business narrative is challenged by the fact that the buyers receiving the most subsidies are—like the exporters—major corporations.