Did America’s war on poverty fail?
The Economist
February 19, 2026
AI-Generated Deep Dive Summary
Did America’s war on poverty fail? This question lies at the heart of a significant debate about the effectiveness of welfare programs established during President Lyndon Johnson’s 1960s initiative to combat poverty. The initiative launched major policies like food stamps and Medicare/Medicaid, which expanded access to healthcare and nutrition. Over the following decades, welfare spending grew rapidly, reaching 15% of GDP annually today, with one in eight Americans now receiving food stamps.
While poverty rates have declined since the 1960s, it’s unclear how much credit the welfare state deserves for this progress. The article suggests that economic growth and broader societal shifts—such as changes in family structures, education levels, and labor market dynamics—have played significant roles alongside government efforts. This raises important questions about the extent to which anti-poverty programs have directly contributed to reducing deprivation.
For business readers, understanding the interplay between policy, economy, and society is crucial. The debate over the war on poverty’s success matters for long-term economic planning, workforce development, and the allocation of resources. If welfare policies are not as impactful as commonly believed, businesses may need to rethink strategies that rely on government programs to reduce inequality. Conversely, if these programs have been effective, they could serve as models for future policy initiatives aimed at fostering economic stability and growth.
Ultimately, the discussion highlights the complexity of tackling poverty and underscores the importance of evaluating the multifaceted factors influencing economic outcomes. For businesses, this means considering how policies, market forces, and social dynamics intersect to shape opportunities and challenges in the labor market and beyond.
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Originally published on The Economist on 2/19/2026