One Nation, Underprivileged: Why American Poverty Affects Us All (review)

Mark Rank has written a timely book on poverty issues, as 2004 marks the 40th anniversary of the War on Poverty. While the period of the mid to late 1960s was one of energy and optimism about the fight against poverty, the following decades brought tougher economic times, diminished expectations, and cynicism about the ability of the government to combat poverty.

Rank is troubled by the lack of progress against poverty and by the fact that this issue is low on the list of the nation's priorities. The book's main thesis is that poverty results from systematic failings within U.S. economic and social structures, that a majority of Americans experience poverty during their adult years, and that poverty is an issue of vital national concern. Thus, Rank argues that poverty amidst plenty is "unwise, unjust, and intolerable."

The book has three sections. The first documents the extent of poverty in the U.S. and includes cross-national comparisons. It presents analyses showing the structural causes of poverty, including the lack of decent-paying jobs and the weak safety net and demonstrates that a majority of Americans experience poverty at some point. In part 2 Rank argues that reducing poverty is in our self-interest, consistent with core American values, and part of our shared responsibility.

Part 3 offers a "new paradigm" for change based on the causes and effects of poverty described previously. Rank advocates policies that create adequately paying jobs (e.g., public service employment), increase the access and availability of social goods (e.g., quality education and health care), buffer the economic consequences of family change for children (e.g., child support policies), build assets of individuals and communities (e.g., increase home ownership), and provide an effective safety net (e.g., strengthen and consolidate current means-tested programs).

The book has several strengths. One is the combination of quantitative data with qualitative interviews of low-income people in part 1 of the book. This discussion provides both an overview of the problem and laudably attaches a human face to it. A second contribution is the inclusion of Rank's previous work that shows how a majority of adults experience poverty at one time or another — this is a unique contribution to the "dynamics of poverty" literature. Third is the extended discussion of why we should care about poverty — including references to the role of values and even citation of scripture — often not contained in this type of research.

That said, not all Rank's contentions are fully convincing, such as the assertion that the book provides a "radically different perspective on American poverty." While some of the empirical research is new, this is still a bit of an overstatement, as most of the perspectives discussed are held by mainstream sociologists, even if not by the public as a whole. For example, as Rank notes, the argument that poverty's roots are structural has a long history in the poverty literature (e.g., Robert Hunter and Seebohm Rowntree). Perhaps what can be said is that the issues are brought together in a fresh, coherent, and persuasive manner.

The final part of the book could have benefited from a fuller discussion of potential trade-offs of various policies, such as the tension between providing an expansive safety net and its effect on economic growth (which has long-term consequences for absolute poverty). Rank too quickly dismisses the latter concerns, even though they figure prominently in both U.S. and especially European policy debates. Finally, while Rank contends that the safety net in the U.S. has weakened over the past 25 years, it might be more accurate to say that means-tested transfers are now concentrated in in-kind benefits (e.g., earned income tax credit, Medicaid) — many aimed at working families — rather than cash assistance programs that are no longer entitlements. This is a momentous policy shift to be sure, with a number of potential pitfalls for...