The Economist: on Welfare & Poverty

Al Gore: Strengthen voluntary charity as well as federal welfare

Al Gore thinks the government can do a lot to help poor Americans, although he, like Bush, wants to strengthen the voluntary sector. Gore would:
• increase the minimum wage from $5.15 to $6.15 an hour
• expand the Earned-Income tax credit
• crack down on “deadbeat dads” and force them to pay child support
• encourage businesses to move into poor areas
• make sure people eligible for food stamps and Medicaid actually get them
• expand the child and dependent-care tax credit and make it refundable
• expand federal spending on child-care subsidies
• give all four-year-olds (not just poor ones) access to pre-school education
• strengthen Social Security benefits for elderly women living alone

Elizabeth Warren: Address housing crisis by assisting cities & homebuyers

George W. Bush: Devolve welfare to both state and private charities

A cornerstone of Bush's campaign is "compassionate conservatism." He wants to encourage the voluntary sector to deliver services to the poor. While not dismissing the role of the federal government, he is keen to devote as much responsibility as possible to the states. He plans to:
• encourage more private giving by making charitable contributions tax-deductible for all taxpayers
• allow faith-based organizations a bigger role in spending public funds to provide services for the needy
• cut the bottom rate of federal income tax to 10% and double the $500 child tax credit
• introduce tax credits to encourage poor Americans to buy health insurance, and to help them save for the down payment on a house
• expand Head Start and focus it on improving reading skills.

Kamala Harris: Build 3m new homes; $25,000 downpayment credits

Her plan is light on details: the construction funding (she targets $40bn) would go to local governments, who would need to find their own solutions. Meanwhile, other elements would cut against her ambitious supply targets. She vows to go after Wall Street investors, whom she decries as "buying up and marking up homes in bulk". They actually own less than 1% of America's single-family homes, and have been building, rather than just buying, homes. Another pledge--one that received loud applause when she unveiled it in a speech in North Carolina on August 16th--is to give first-time homebuyers $25,000 towards downpayments on mortgages. With demand for homes still outstripping supply, extra cash of this kind may just translate into higher prices.