Why being poor costs more and pays a lot less

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Fifty years ago, President Lyndon B. Johnson made a move that was unprecedented at the time and remains unmatched by succeeding administrations. He announced a War on Poverty, saying that its “chief weapons” would be “better schools, and better health, and better homes, and better training, and better job opportunities.”

So starting in 1964 and for almost a decade, the US federal government poured at least some of its resources in the direction they should have been going all along: toward those who were most in need. Longstanding programs like Head Start, Legal Services, and the Job Corps were created. Medicaid was established. Poverty among seniors was significantly reduced by improvements in Social Security.

Johnson seemed to have established the principle that it is the responsibility of government to intervene on behalf of the disadvantaged and deprived. But there was never enough money for the fight against poverty, and Johnson…

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