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Well, not quite. But the U.S. ranks among the bottom and the U.S. welfare state is so underfunded as to be considerably less efficient in reducing poverty than the nordic and Canadian welfare states. A common rebuttal from conservatives is that, while the welfare state may indeed be good at reducing relative poverty within a society, it retards growth. If for example Sweden is able to keep relative poverty low, the adverse effects of a large welfare state , i.e. less growth, cause a greater share of its population to be worse off than the poor in say, the UK or U.S. In order to bust this myth researchers have measured both, pre-transfer and post-transfer, poverty rates at an absolute standard, set at 40% of U.S. median household income. The table below shows this absolute standard, which dispells the idea that a welfare state induced depression of growth causes absolute poverty is rise. Fewer people in Norway, Sweden, etc... live on less than 40% of U.S. median household income than in the U.S. We must, as a nation, face the fact that we have one of the highest poverty rates, in both: absolute and relative terms - so we may take appropriate actions. | Country | Absolute poverty rate
(treshold set at 40% of U.S. median household income) | Relative poverty rate |
|---|
| Pre-transfer | Post-transfer | Pre-transfer | Post-transfer | | Sweden | 23.7 | 5.8 | 14.8 | 4.8 | | Norway | 9.2 | 1.7 | 12.4 | 4.0 | | Netherlands | 22.1 | 7.3 | 18.5 | 11.5 | | Finland | 11.9 | 3.7 | 12.4 | 3.1 | | Denmark | 26.4 | 5.9 | 17.4 | 4.8 | | Germany | 15.2 | 4.3 | 9.7 | 5.1 | | Switzerland | 12.5 | 3.8 | 10.9 | 9.1 | | Canada | 22.5 | 6.5 | 17.1 | 11.9 | | France | 36.1 | 9.8 | 21.8 | 6.1 | | Belgium | 26.8 | 6.0 | 19.5 | 4.1 | | Australia | 23.3 | 11.9 | 16.2 | 9.2 | | UK | 16.8 | 8.7 | 16.4 | 8.2 | | U.S. | 21.0 | 11.7 | 17.2 | 15.1 | | Italy | 30.7 | 14.3 | 19.7 | 9.1 |
Sources: Bradley, D., Huber, E., Moller, S., Nielson, F. & Stephens, J. D. (2003). Determinants of relative poverty in advanced capitalist democracies. American Sociological Review, 68(3), 22-51. Kenworthy, L. (1999). Do social-welfare policies reduce poverty? A cross-national assessment. Social Forces, 77(3), 1119-1139.
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