Wash. Post Highlights Research Debunking Myth That Economic Growth Is Solution To Poverty

The Washington Post highlighted research demonstrating “only a weak relationship” between increased economic growth and increased economic security in the United States. The findings undermine a core tenet of conservative economic philosophy, often parroted by Republican presidential hopefuls and conservative media outlets, which claims that so-called “pro-growth” strategies like tax cuts are the best policy for alleviating insecurities faced by millions of Americans.

In a February 2 post for The Washington Post's Wonkblog, reporter Emily Badger outlined how recent research from the Brookings Institution reveals a “weak relationship” between economic growth rates and improved economic inclusion in the country's 100 largest metropolitan areas. According to the Brookings report, from 2009 through 2014 the “growth/inclusion relationship was relatively weak” and consistent economic growth “hasn't revealed much about whether we are resolving larger challenges around providing improved economic opportunities for all.”

The Post concluded by highlighting how the Brookings data seemingly debunks economic policy talking points promoted by Republicans including Jeb Bush and Paul Ryan, which fixate on economic growth as one of the major solutions to poverty. From The Washington Post (emphasis added):

Look across all 100 of these metros, and there's only a weak relationship between economic growth and inclusion. Areas with rapid growth haven't necessarily swept up the poor and working class. In many places where relative poverty has declined (like Jackson, Miss.), the economy isn't growing much:

This non-pattern is notable precisely because the rising-tide theory remains so alluring, particularly among Republicans. Grow the economy, they argue, and that will improve job prospects and living standards for everyone -- the poor, the working class, minorities and other groups that have been left behind. Economic growth, they add, will achieve far more than any targeted program or government spending.

“The best anti-poverty program is economic growth,” Paul Ryan declared in the Wall Street Journal two years ago, as he was beginning to roll out his own poverty agenda.

“Economic growth is the key to everything,” offered Ohio Gov. John Kasich.

Here's Jeb Bush's take, in arguing that 4 percent growth will create jobs enough for everyone: “So many challenges could be overcome if we just get this economy growing at full strength.”

Rand Paul insists that this logic will specifically lift up African Americans, who should reconsider “the Republican promise” for policies that boost economic growth.

The data that we have, though, shows that inclusion doesn't work on autopilot. Sometimes -- often -- economic growth happens without broad benefits. And that means we have to actually be intentional in bringing everyone along, in connecting poor communities to transportation, or unemployed men to job training, or minority children to better education.

The Brookings research seems to support a hypothesis endorsed by economists Jared Bernstein of the Center on Budget and Policy Priorities and Elise Gould of the Economic Policy Institute, who argue that economic growth alone is not enough to reduce economic insecurity in the face of persistent inequality.

Despite this evidence, conservative media have claimed for years that growing the economy is the best and only solution to alleviating economic insecurity and that crafting policies to reduce inequality as a means of reducing poverty would be counterproductive. Making matters worse, the tax cuts frequently endorsed by conservative media as a means of spurring economic growth have failed to generate the promised economic returns, though research suggests cutting taxes can worsen economic inequality.

According to Media Matters' analysis of evening and prime-time economic news coverage in 2015, segments about policies focused on creating jobs and growing the economy were frequently featured on major cable and broadcast programs, outnumbering discussions of economic inequality.**

During the course of a 12-month survey, Media Matters recorded 382 segments on ABC, CBS, NBC, CNN, Fox News, and MSNBC focused on economic growth -- most of which came from Fox News. The same 12-month period produced 301 segments focused on economic inequality -- two-thirds of which came from MSNBC alone.

**Media Matters' economic indicator tracking reports are available here: first and second quarters, 2015; third and fourth quarters, 2015.