Few problems in history have ever been studied as much as poverty, which exists in all countries, be they rich or poor. Although the United States is called the richest country in the world, it makes no exception. Nearly one out of every eight Americans, according to an estimate, is poor. The concern of American government and people over the problem of poverty has become acute in the past several decades, and as the largest anti-poverty program, American social security system, since its establishment, has stirred up plenty of controversy.
This paper endeavors to examine the extent of poverty in the United States, its causes and consequences. It concludes that some Americans are much more likely to suffer poverty and their poverty may be attributed to both behavioral and structural factors. The paper also tries to discuss the anti-poverty program, evaluate the effects of it on poverty relief analyzing the factors that have hindered the efficiency of it. When problems arise, solutions come accordingly. Therefore, in the final part of the paper the thesis takes an in-depth look at the major reform programs on anti-poverty program. It is hoped that from this study of American poverty and anti-poverty studies, people can gain more insight into American way of living and American policy.
Key words: poverty, anti-poverty, social security
The world, at the beginning of the twenty-first century, is facing various challenges. Among them, poverty has been the continuous concern of many international organizations and countries. Although the United States is called the richest country on earth, poverty exists in it. It has long been known that even at the most prosperous periods there have been people without enough to eat, and that the social security system was not enough to cure the evils of poverty.
The number of poor Americans is enormous. Each year since the mid-1960s the federal government has attempted to identify those Americans living in poverty.According to the latest available figures, there were nearly 37.0 million poor persons living in the U.S. in 2005, some 12.6 percent of the population.[1]
Poverty may well become America’s most serious and costly social problem. Given the size, cost and consequences of poverty, America has a substantial stake in preventing this condition and in helping as many of the poor as possible to become self-reliant, secure and economically productive. The cost of services to the poor is staggering. Considering only the major welfare programs (e.g., Temporary Assistance to Needy Families, Food Stamps, Medicaid, Supplemental Security Income), expenditures at the state and federal levels substantially exceed $300 billion a year.
Major government efforts to assist the poor grew out of the New Deal Legislation of the 1930s, and these programs have evolved and grown substantially over time. As welfare programs and expenditure have grown, skepticism about the cost and effectiveness of these programs has become increasingly widespread within and outside of the government. Taking inflation into consideration, expenditures for welfare programs increased by 400 percent between 1935 and 1996. During this same period, the American population grew by only 32 percent. Despite major increases in expenditures, poverty rates increased during the 1980s and most of the 1990s. In the last two decades, over 90 percent of those families receiving cash assistance lived in poverty. Despite all these growing expenditures, America's major welfare programs were actually not designed to reduce poverty. This being the case, only rarely have America's complicated and increasingly expensive programs helped the poor go off welfare and become economically reliant and secure.
To confront with the public skepticism about the design, expense, and effectiveness of American welfare programs, Presidents Nixon, Ford, and Carter recommended major welfare reforms to Congress. However, none of these reforms were passed. Presidents Reagan and Bush also recommenced reforms. On May 2, 2001 President Bush announced the appointment of his Social Security Commission, the "President's Commission to Strengthen Social Security." The Commission issued its final report in December 2001“Strengthening Social Security and Creating Personal Wealth for All Americans”, the Final Report of the President's Commission to Strengthen Social Security --- released on December 21, 2001. This document includes all appendices and Estimates of Financial Effects for Three Models Developed by the President's Commission to Strengthen Social Security. This can be recognized as a milestone on the way to perfect Social Security System.
This paper begins with the brief description of American poverty. This is followed by a survey of American poverty population, namely “who are the poor” in terms of race, age, nativity, region and family structure. Then it moves on to the causes of poverty, which falls into three aspects: lack of economic opportunity; behavioral poverty and inability. Here also summarizes the consequences of poverty. The following part focuses on American Social Security System --- the nation’s biggest weapon against poverty. Firstly the paper reviews its history and development from the original Social Security Act of 1935. Then, the paper turns to the effects of the Social Security System on ameliorating poverty. Although it does play an undeniable role in aiding the poor, the present system has numerous shortcomings. The last part of this chapter will not only address these shortcomings, but also examine the major reforms in contemporary American history, trying to assess the effects of the reforms.

[1] U.S. Census Bureau, Current Poverty Data, 2005

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