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The Inclusive Economy: How to Bring Wealth to America's Poor

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About the Author

Michael Tanner is a senior fellow at the Cato Institute where he heads research into a variety of domestic policies with a particular emphasis on poverty and social welfare policy, health care reform, and Social Security. Tanner is the author of numerous other books on public policy, including Going for Broke: Deficits, Debt, and the Entitlement Crisis, Leviathan on the Right: How Big-Government Conservatism Brought Down the Republican Revolution, Healthy Competition: What's Holding Back Health Care and How to Free It, The Poverty of Welfare: Helping Others in Civil Society, and A New Deal for Social Security.

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Product details

Hardcover: 250 pages

Publisher: Cato Institute (December 7, 2018)

Language: English

ISBN-10: 194864701X

ISBN-13: 978-1948647014

Product Dimensions:

6.4 x 1.2 x 9.3 inches

Shipping Weight: 1.3 pounds (View shipping rates and policies)

Average Customer Review:

4.7 out of 5 stars

8 customer reviews

Amazon Best Sellers Rank:

#73,564 in Books (See Top 100 in Books)

Anyone who can make both the left and the right wingers angry is likely speaking truth to those in power. This book is extremely well-researched. It presents a balanced history of poverty in America and explains why both political extremes have no answer for solving the poverty program. His makes a persuasive case for why trying to raise taxes on the rich and simply handing over money to the poor will never solve the poverty problem (in the sense of eliminating poverty as opposed to alleviating its harms). Little progress has been made towards the goal of ending poverty since LBJ announced a national "War on Poverty." But he also takes conservatives to task for believing that all that is needed is hard work and following simple rules. (Donald Trump would choose not to work if he faced the marginal tax rates that many poor people face if they are making use of current government antipoverty programs). He makes a strong case that the trillions of dollars we have spent trying to win the war on poverty has merely institutionalized poverty. And unfortunately a huge bureaucracy that only exists because of poverty really has little interest in seeing poverty eliminated!What will be most challenging for readers is Tanner's prescription for truly ending poverty, which would begin with ending another sham "war" declared by another president - Nixon's "war on drugs." Here we have trillions more dollars spent with little success in stopping people from using their drug of choice.For anyone truly interested in understanding what would be required to end poverty in America. this book is a must-read. But it must be approached with an open mind, because its analysis and recommendations will be challenging to any on the right or left who already thinks they "know" all the answers. Libertarians though should take heart!

This book begins with a series of admissions that may shock some conservatives. Poverty is a real problem in this country, and for those affected it hurts. The trillions of dollars that have been plowed into the “War on Poverty” that was declared by LBJ in 1964 have alleviated poverty to some extent – even the federal government couldn’t spend that much money without getting something for it. And a good deal of history is cited to show that governments (as distinguished from churches and private charity) have been intervening to help the poor for many years, e.g., as by the English Parliament’s passage of the Poor Law in 1601.What are the causes of poverty. Does this condition simply show that some people are less capable of competing in the economy than others, or are cultural factors at work that put certain segments of the population at a disadvantage. Again, Tanner seemingly comes on down the liberal side of the argument. Racial repression is real and the rules of society were long rigged against women (yes, there have been some big changes, but single women are still more at risk of being poor than men are). So don’t bother arguing that it’s time to abolish the welfare state, because such a course would be morally bankrupt (and political suicide for conservatives).Tanner rejects the notion, however, that the government should seek to end poverty once and for all. Utopia is not an option, poverty reflects individual life choices as well as societal factors, poverty can never be fully eliminated. Also, economic growth has been the engine that permitted the United States and other developed nations to lift the majority of the population out of poverty, and we certainly don’t want to risk “killing the goose that lays the golden eggs.” It would be better to be unequally rich than equally poor.Given skyrocketing deficits and debt, it’s hard to believe that the US should spend even more on welfare programs than the $1 trillion per year (federal + state) that it is spending already.. And while one could argue that welfare for the poor is more important than entitlement programs (Social Security, Medicare, etc.) for the general population, the idea of eliminating the entitlement programs (as opposed to hopefully making them more affordable) is a nonstarter. Also, there is some merit in arguments that existing welfare programs treat the symptoms of poverty without helping the people concerned to improve their fortunes (or at least the fortunes of their children) through their own efforts.Some welfare program reforms are discussed, which hopefully will be pursued in an effort to get “more bang for the buck.” Combine the plethora of programs (some 100 or more) into a much smaller number - convert “in kind” benefits to cash benefits (giving the recipients more power to make optimal choices based on their specific circumstances) - make the welfare system more transparent and simpler to navigate. But at the end of the day, none of these ideas is likely to be a real game changer.The book moves on to a series of libertarian ideas that would attack some root causes of poverty without attempting to address the problem by spending more and more money. Criminal justice reform (at all stages, starting by criminalizing fewer offenses) – educational reform (promote more choice and competition vs. pouring more money into a monolithic public school system) – rethink laws that are driving up housing costs (especially for the poor) – find ways to permit the poor to accumulate savings (notably private accounts for the payroll taxes they are compelled to pay into Social Security) - prune or eliminate taxes and regulations that are curbing economic growth.Overall assessment: Excellent research, presents a lot of ideas that aren’t obviously related until Tanner points out the connections. Sensible, balanced conclusions. I plan to keep the book in my library for future reference.

This book should be required reading for everyone studying or interested in economics. These easy solution to most problems is more money but that is not always possible nor the most effective or efficient solution. I do not agree with everything the author recommends but he does make very strong arguments with extensive research and supporting data. I would add one observation that I think should have been included and that is you will never be successful or accumulate wealth if you are dependent on government safety net programs.

This is an excellent book! It presents a balanced view based on research. It is as nonpartisan as writing can be about such a politically divisive topic. The approach to poverty that is suggested has real potential for improving the lives of so many people ...and not just the poor. The writing is straightforward and simple, but not simplistic. If you have a book club that reads non-fiction, this book should generate an excellent discussion. Thank you, Michael D. Tanner.

Definitely a well thought out subject. I was hoping for a little more succient solutions to one of this country’s major problems.

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