USL20 Poverty Scenarios

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In prior posts (here and here) I've presented forecasts for US Hardship and Poverty that (1) were not very reassuring and (2) did not suggest any policy options. In this post, I will present and discuss some Poverty Scenarios based on different drivers for policy. The graphic above presents six possible future scenarios for SI.POV.DDAY from the World Development Indicators.

The TECH models indirectly address the current concern of the impact of Artificial Intelligence (AI) on employment, that is, taking away jobs. The BAU (Business as Usual) and RW (Random Walk)  describe two options for a Benevolent Neglect Policy (see below). The USL20-Input model allows the US economy to generate whatever level of economic progress produces in terms of poverty reduction. The WL20-Input lets trends in development of the World System determine levels of poverty.

• Business as Usual (BAU) turns out to be one of the best models given the AIC Statistics (see below).
• Random Walk (RW) the muddling-through model assumes that random attempts to reduce poverty might eventually find a solution.
• TECH Efficiency (TECHE) assumes that attempts to manipulate the intensive coefficients in the Kaya Impact model will affect poverty.
• WL20-Input assumes that keeping US Poverty in line with the World-System will at least ensure that Poverty remains at world-wide acceptable levels.
• USL20 Input assumes that growth in the US Capitalist economy provides the best way to reduce poverty.
• TECH Productivity (TECHP) assumes that Technical Productivity (Solow-Swan Economic Model) is the primary driver of economic growth and poverty reduction.

The best models, in terms of keeping poverty at existing levels, are the BAU and RW (benevolent neglect, see below) models. All the other models raise US Poverty above current levels. 

        None of the models considered will Reduce Poverty in the US.

Notes

Benevolent Neglect

From Google AI:

USL20 Poverty AIC Statistics

USL20 Poverty BAU Model