compare rates over time. After all, would a lower poverty rate change the definition, or is it the case that people

were actually better off? Government statisticians at the U.S. Census Bureau have ongoing research programs

to address questions like these.

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15.2 • The Poverty Trap 363

15.2 The Poverty Trap

LEARNING OBJECTIVES

By the end of this section, you will be able to:

• Explain the poverty trap, noting how government programs impact it

•

Identify potential issues in government programs that seek to reduce poverty

• Calculate a budget constraint line that represents the poverty trap

Can you give people too much help, or the wrong kind of help? When people are provided with food, shelter,

healthcare, income, and other necessities, assistance may reduce their incentive to work, particularly if their

work is likely to offer low wages and reduce government assistance. Consider a program to fight poverty that
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