Value of Abolishing Poverty (NLIEC)

In a paper recently published by Entergy Corporation, Jerrold Oppenheim and Theo MacGregor show that investments to eradicate poverty can pay for themselves returning to all Americans 3.75 times the amount invested. Investments in energy efficiency for low-income homes are especially cost-effective, returning at least $7 to society for every $1 invested. The paper, "The Economics of Poverty: How Investments to Eliminate Poverty Benefit All Americans," shows that anti-poverty investments are particularly cost-effective if they are carefully targeted. Energy efficiency is one example. Another is investments in high-quality pre-school education for low-income children, which return $9 for every dollar invested. Other proven investments are food for hungry children, preventive health care, and job training. Thus a careful $400 billion investment can generate at least $1.5 trillion in savings and income that's $18,000 for every non-poor American household, or a 30 percent increase in median income. The gap between rich and poor in the U.S. has hit levels reminiscent of the Great Depression. "The Economics of Poverty" shows how investments to eliminate poverty are among the most cost-effective investments we can make.