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modernize America’s high schools for real-world learning. The goal is to provide challenging, relevant experiences, and reward schools that develop new partnerships with colleges and employers, and that create classes that focus on technology, science, engineering, and other skills today’s employers are demanding to fill jobs now and in the future. Creating Jobs and Growing Our Economy Building on the evidence that well-designed training programs can improve employment and earnings (Andersson et al. 2013), this Administration has proposed investing in subsidized employment and training opportunities for adults who are low-income or long-term unemployed. In 2009 and 2010, 372,000 low-income youth were placed into summer and year-round employment, and supported job opportunities were created for about 260,000 low-income individuals. In addition, the President continues to build public-private partnerships to provide opportunities for low-income youth. The Administration is using all available tools to help people who have lost their jobs to find new work or to train for new careers in growth fields that will provide better jobs and paths to viable careers. This includes supporting training opportunities that lead directly to a job, and making sure our unemployment system promotes re-employment through wideranging reforms to the unemployment insurance program, some of which were adopted in the Middle Class Tax Relief and Jobs Creation Act of 2012, and continued investment in reemployment services, which have proven effective in speeding the return to work. The President has proposed to build on these successes by further investing in creating job and work-based training opportunities for the long-term unemployed and youth seeking skills and wanting to get into the workplace. This Administration has already invested $1.5 billion in community college-business partnerships in all 50 states to build capacity and develop curricula to train workers for jobs in growing industries. President Obama has proposed to build on these successes with further investments that will transform community college education and support Americans in getting training to enter skilled jobs. Investing in and Rebuilding Hard-Hit Communities Living in a high-poverty area presents various challenges, including crime, limited access to quality education, and scarcity of good jobs. Since these issues often interact with each other and compound the problems they The War On Poverty 50 Years Later: A Progress Report | 265
create individually, it is very difficult for people, particularly children, to overcome the disadvantages created by and associated with poverty. A child’s zip code should never determine his or her destiny. To help provide ladders of opportunity so that every child has a chance to succeed, the Administration is working with State and local governments to focus public and private resources on transforming areas of high need into communities of opportunity. The Administration’s Promise Zones initiative focuses existing government resources on competitively selected communities and leverages private investment to create jobs, improve public safety, increase educational opportunities, and provide affordable housing. The Administration will designate 20 communities over the next several years with this intense and layered approach to community revitalization. That approach includes working with local leadership, and bringing to bear the resources of the President’s signature revitalization initiatives from the Department of Education, the Department of Housing and Urban Development, the Department of Agriculture, and the Department of Justice, to ensure that federal programs and resources support the efforts to turn around 20 of the highest poverty urban, rural and tribal communities across the country. The Promise Zones initiative will build on existing programs, including HUD’s Choice Neighborhoods and the Department of Education’s Promise Neighborhoods grant programs. The Administration has invested $244 million in Choice and $157 million in Promise since 2010. For every federal dollar spent, Choice Neighborhoods has attracted eight dollars of private and other investment and has developed nearly 100,000 units of mixed-income housing in 260 communities, ensuring that low-income residents can afford to continue living in their communities. Promise Neighborhoods grants are supporting approximately 50 communities representing more than 700 schools. To help leverage and sustain grant work, 1,000 national, state, and community organizations have signed-on to partner with a Promise Neighborhood site. By expanding these programs, the Administration continues to support local efforts to transform low-income urban, rural, and tribal communities across the country. Conclusion The War on Poverty represented a dramatic shift in the Federal Government’s priorities for helping those who are left behind in a growing economy. It set in motion a series of changes that transformed our social safety net and improved the well-being and economic outcomes of countless 266 | Chapter 6
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ECONOMIC REPORT OF THE PRESIDENT To
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C O N T E N T S ECONOMIC REPORT OF
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economic report of the president To
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year-old. In the meantime, I’m go
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the annual report of the council of
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C O N T E N T S CHAPTER 1. PROMOTIN
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APPENDIX 1: COMPONENTS OF THE RECOV
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THE OBAMA ADMINISTRATION’S RECORD
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2.15. Housing Starts, 1960-2013....
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3.1. Forecasted and Actual Real GDP
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C H A P T E R 1 PROMOTING OPPORTUNI
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Opportunity, Growth, and Security i
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crisis—continue to rebound and co
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Figure 1-4 Real GDP Per Working-Age
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Figure 1-6 Change in Poverty Rate F
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Figure 1-7 Domestic Crude Oil Produ
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Figure 1-8 Growth in Real Per Capit
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Figure 1-9 Unemployment Rate by Dur
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e needed to make up for a decades-l
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Annual percent change 2.50 15-year
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Figure 1-14 Share of National Incom
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Along with steps that create jobs,
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corner, with purchases increasing d
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the four quarters of 2013, or enoug
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Percent of GDP 12 10 8 6 4 2 0 -2 -
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Percent 5.0 4.0 3.0 2.0 Figure 2-3
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In the euro area, the unemployment
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Figure 2-6 Cumulative Flows into Mu
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Figure 2-7 Household Deleveraging,
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Box 2-1: The 2013 Comprehensive Rev
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Percent 25 20 15 10 5 0 -5 Figure 2
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Figure 2-11 State and Local Pension
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Percent of GDP 2 1 0 Figure 2-14 Cu
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Box 2-2. Administration Trade Polic
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Upon completion, the TPP and T-TIP
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percent of households report that i
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Figure 2-18 Petroleum Net Imports,
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Figure 2-21 U.S. Per Capita Consump
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Percent 11 Figure 2-22 Unemployment
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Figure 2-25 Predicted vs. Actual Ma
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Box 2-4: Unemployment Duration and
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The Long-Term Outlook The 11-Year F
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Growth in GDP over the Long Term As
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Box 2-5: Immigration Reform and Pot
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Even with this growth, however, the
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families. The other half was for in
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ecause of rapidly declining stock a
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Obama Administration and the 111th
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Figure 3-1 Recovery Act Programs by
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other cases, new measures expanded
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Figure 3-2 Recovery Act and Subsequ
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Box 3-1: Other Administration Polic
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challenges, and how economists have
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Table 3-5 Estimated Output Multipli
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Figure 3-7 Quarterly Effect of the
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Table 3-6 Estimates of the Effects
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International Comparison The 2008 c
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Box 3-2: The U.S. Recovery in Compa
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Table 3-7 Tax Relief and Income Sup
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traditionally been jointly financed
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downturn in the economy. Even thoug
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Figure 3-11 Recovery Act Cumulative
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The Recovery Act also invested in r
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helped individuals who chose to ret
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the period, even though total power
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average—then the resulting increa
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Alternative Minimum Tax relief, bus
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Through the end of a Individual Tax
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y Poterba (1994), states and locali
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Table 3-11 Fiscal Support for the E
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spells. Because the resulting unemp
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literature uses two different appro
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Table 3-12 Summary of Cross-Section
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the CMS projections show real per-c
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will accrue to workers as higher wa
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Box 4-1: Two Measures of Growth in
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Figure 4-1 Growth in Real Per Capit
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in particular may not exactly track
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find that even those seniors who di
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the slowdown in real (that is, infl
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health care costs for an individual
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estimate for the ACA found that its
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Figure 4-4 Medicare 30-Day, All-Con
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agreements among the providers them
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payment for physician services, the
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Box 4-3: The Cost Slowdown and ACA
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2010a; 2011; 2012c; 2013a; 2014), w
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Figure 4-6 Recent CBO Projections o
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Conclusion The evidence is clear th
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facilitated this private-sector tec
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esulting gap between the actual gro
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Table 5-1 Sources of Productivity I
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Table 5-2 Nonfarm Private Business
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of the productivity improvement res
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Figure 5-3 Growth in Productivity a
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improving and college completion ra
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Box 5-2: Does Inequality Affect Pro
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Percent 3.5 Figure 5-5 Composition
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• Just two of the largest U.S. te
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Box 5-3: Just-in-Time Manufacturing
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Figure 5-7 Exclusive and Shared All
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Box 5-4: Spectrum Investment Polici
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To stimulate investment in more adv
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Because current uses of technology
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Box 5-5: Electronic Health Records
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about the array of services and sup
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Page 221 and 222: Box 5-6: The Leahy-Smith America In
Page 223 and 224: Box 5-7: Pay-For-Delay Settlements
Page 226 and 227: C H A P T E R 6 THE WAR ON POVERTY
Page 228 and 229: Measuring Poverty: Who is Poor in A
Page 230 and 231: thresholds ever since. These dollar
Page 232 and 233: of necessary items, including food,
Page 234 and 235: Table 6-1 Poverty Rates by Selected
Page 236 and 237: Box 6-3: Women and Poverty While wo
Page 238 and 239: However, this reflects smaller decl
Page 240 and 241: Percent 25 Figure 6-1 Trends in the
Page 242 and 243: Box 6-4: Social Programs Serve All
Page 244 and 245: of low- and middle-income workers a
Page 246 and 247: particularly valuable since they es
Page 248 and 249: Figure 6-4 Official vs Anchored Sup
Page 250 and 251: deep market poverty driven by the b
Page 252 and 253: work: in 2010, for example, unemplo
Page 254 and 255: out of poverty through job training
Page 256 and 257: e noted that researchers have found
Page 258 and 259: 2012). Among the children of low-ea
Page 260 and 261: Education appears to be one of the
Page 262 and 263: Friedman, and Rockoff (2011) find t
Page 264 and 265: including an additional $25 a week
Page 266 and 267: Figure 6-11 Recovery Act and Subseq
Page 268 and 269: Empowering Every Child with a Quali
Page 272 and 273: low-income Americans and their chil
Page 274 and 275: C H A P T E R 7 EVALUATION AS A TOO
Page 276 and 277: program evaluation efforts. For exa
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Page 280 and 281: y adopting successful interventions
Page 282 and 283: Box 7-2: Using Behavioral Economics
Page 284 and 285: Box 7-3: “Rapid Cycle” Evaluati
Page 286 and 287: Figure 7-1 Outlays for Grants to St
Page 288 and 289: performance data, fewer than half o
Page 290 and 291: Investment Act programs. The PROMIS
Page 292 and 293: Figure 7-2 Inventory of Beds for Ho
Page 294 and 295: example, included a nondiscretionar
Page 296 and 297: Other benefits of considering evalu
Page 298 and 299: with the treatment effect and thus
Page 300 and 301: unemployment insurance wage and ben
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Page 304 and 305: REFERENCES Chapter 1 Almunia, Migue
Page 306 and 307: ____. 2014. “Press Release: Janua
Page 308 and 309: and the TPP at the Peterson Institu
Page 310 and 311: Increase Employment Evidence from t
Page 312 and 313: ___. 2010b. “The Economic Impact
Page 314 and 315: ___. 2012. World Economic Outlook A
Page 316 and 317: Polak Annual Research Conference. W
Page 318 and 319: Baicker, Katherine and Amitabh Chan
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Daly, Mary, Bart Hobijn, and Brian
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Nominal Wages,” International Jou
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Learning: A Meta-Analysis and Revie
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Chien, Colleen V. 2012. “Reformin
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GAO (Government Accountability Offi
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Jorgenson, Dale. 2001. “Informati
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Integration in Economic Development
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_____. 2007. “Improving the Safet
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Dahl, Gordon B. and Lance Lochner.
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Heckman, James J. and Dimitriy V. M
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Ludwig, Jens and Douglas Miller. 20
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Sharkey, Patrick. 2009. “Neighbor
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_____. 2013. “Practical Evaluatio
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www.nij.gov/topics/corrections/comm
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Stock, James H., and Mark Watson. 2
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letter of transmittal Council of Ec
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Council Members and Their Dates of
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The Members of the Council Betsey S
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Act has had on reducing health care
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Statistical Office The Statistical
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A P P E N D I X B STATISTICAL TABLE
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INTEREST RATES, MONEY STOCK, AND GO
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2013-to-2014 TABLE NUMBER MATCH 201
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Year or quarter Table B-1. Percent
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Table B-2. Gross domestic product,
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Table B-3. Quantity and price index
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Table B-5. Real exports and imports
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Year Total 2 Table B-7. Real farm i
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Table B-9. Median money income (in
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Year or month Civilian noninstituti
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Year or month All civilian workers
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Table B-14. Employees on nonagricul
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Table B-15. Hours and earnings in p
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Year and month Interest Rates, Mone
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Year and month Table B-18. Money st
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Table B-20. Federal receipts, outla
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Table B-22. Federal receipts, outla
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Table B-24. State and local governm
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End of month Table B-26. Estimated
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B-7. Chain-type price indexes for g
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B-28. National income by type of in
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B-48. Employment cost index, privat
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B-65. Producer price indexes by sta
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B-81. Federal receipts, outlays, su
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B-99. Farm output and productivity
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B-111. International reserves Inter
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