The fact that 10 million children in the
United States live in families with incomes below the poverty line means
that their chances of growing up and being healthy and productive adults is
compromised. The United States reduced its child poverty rate by 50 percent
over the last 35 years. In the United Kingdom the government of Tony Blair
embarked on a poverty reduction program and reduced child poverty by 50% in
seven years. The kind of programs that we considered
varied widely — employment support programs, earning support programs like
the Earned Income Tax Credit, income support programs like food stamps. We
developed a child allowance based on the child tax credit.
Moreover we designed these packages in ways that combine income support with
work support so that not only was poverty reduced by 50 percent but at
the same time employment among low-income adults was increased.