Question 11.6

2. According to Table 11-3, what effect does the U.S. welfare state have on the overall poverty rate? On the poverty rate for those aged 65 and over?

The second column of Table 11-3 gives the percentage reduction in the overall poverty rate by government programs. So the reduction in the overall poverty rate by the U.S. welfare state is given by adding up the numbers in that second column, which gives a 16.7% reduction in the overall poverty rate. For those aged 65 or over, the welfare state cuts the poverty rate by 43.6%, the amount given by adding up the numbers in the last column of Table 11-3.