Editorial: A new look at poverty

Saturday, Jan. 27, 2007 | 7:12 a.m.

A new federal report suggests that the ills suffered by people who live in poverty also can have negative effects on economic growth for all levels of society.

Not surprisingly, the report released Thursday by the Government Accountability Office, the research arm of Congress, says that people who live in poverty are hindered by increased risks of enduring such hardships as poor health and exposure to criminal activity.

For example, the GAO says, limited access to health care and greater exposure to environmental hazards, such as higher levels of air pollution in urban areas near freeways, increase the likelihood that impoverished people will remain unhealthy for longer periods of time than people whose incomes are higher.

These adverse living conditions affect people in a variety of ways, the GAO says, but they typically limit people's abilities to develop the knowledge, skills and levels of health needed to obtain, and keep, a steady job.

When people cannot earn enough to get by, social unrest and crime rates tend to increase, the GAO says. And this triggers a decrease in the value of "human capital," a term that economists use to define workers' education, experience, skills and overall health. Human capital is considered "one of the fundamental drivers of economic growth," the GAO says. When human capital deteriorates, society's overall economic growth could slow.

These conclusions seem elementary and obvious, but too often they are ignored by policymakers. Still, they are important for state and federal lawmakers to consider when making decisions about health care coverage and funding for public education and for such programs as child care for lower income parents, who are seeking an education or are trying to improve their work skills.

About 37 million people were living below the federal poverty line in 2005, the GAO reports. That means 13 percent of the U.S. population could be hindered from fully participating in the nation's labor force. Their struggles are more than personal, for they can limit economic growth for everyone.