KENNEDY EXPOSES MAJOR FLAW IN AMERICAN'S POVERTY NUMBERS

Hinzugefügt: 2026-06-03

[00:00:00]Uh, Mr. Secretary, the Census Bureau is is under your jurisdiction, is it not?

[00:00:04]>> Yes, it is.

[00:00:05]>> And the Census Bureau is is in charge of defining what it means to be poor or in poverty in America. Is that correct?

[00:00:12]>> I think it does economic analysis for America.

[00:00:16]>> But it also defines poverty level, does it not?

[00:00:18]>> I don't know if it's the defining um >> look cuz it does.

[00:00:22]>> Okay.

[00:00:22]>> Um how how if you know, this isn't a quiz, if you know, what's the uh percentage of Americans who live at or below the poverty level?

[00:00:30]>> I I don't know the percentage.

[00:00:31]>> Okay. It's around 11%. It's it's been constant. Now, when when the Census Bureau defines poverty, they do it by income. You're aware of that. Um when the Census Bureau defines poverty using income, they only count income that the individual earn or cash income that the individual gets from the uh federal government. Is that correct?

[00:00:50]>> Well, it includes all sources of their income. I mean, that is the purpose.

[00:00:53]>> Yeah, their income and cash income from the federal government. Is that correct?

[00:00:58]>> does it include income that they receive from the federal government?

[00:01:00]>> Yeah. Cash.

[00:01:02]>> I think I think so.

[00:01:02]>> Yeah. So, so if a person makes $11,000 a year, that's considered toward poverty level, but if the person gets a cash payment, let's say in the form of SSI or or um um TANF, um that counts, too. Is that right?

[00:01:16]>> I'm not certain.

[00:01:17]>> Yeah, it does.

[00:01:18]Okay. Are you aware that your agency doesn't count non-cash payments from the federal government defining poverty?

[00:01:25]>> I am not.

[00:01:26]>> Uh are you aware that your agency doesn't count refundable earned income tax credits or food stamps or housing subsidies or utility bill subsidies or Medicaid or free school meals? They don't count that. They call it a non-cash payment and it doesn't count. You're aware of that?

[00:01:45]>> Sounds to me that you and I are going to spend some time together and we're going to change it, but I did not know that and it sounds like something that we should add.

[00:01:50]>> A tense exchange unfolded on Capitol Hill as Senator John Kennedy challenged Commerce Secretary Howard Lutnick over how poverty is measured in the United States. The hearing quickly turned into a debate about whether official statistics truly reflect the full impact of government assistance on struggling families.

[00:02:09]>> And and and the purpose of my question is not to punish people who need help.

[00:02:12]The American people are the most generous people in the world.

[00:02:15]Uh that's why we spend $1.4 trillion a year helping people that other countries would allow to die in the ditch.

[00:02:22]But your Census Bureau says it's 11%.

[00:02:27]Uh who live at and below the poverty level. That's a lie.

[00:02:30]It's 1%.

[00:02:31]If you count as as any person with a brain above of a single-cell organism would, cash and non-cash payments, I I then they're not they're above the poverty level. And we ought to be honest with the American people and thank them for getting the poverty level down to 1% ins- instead of giving them a curb stomping and calling them selfish. Let me give you a real-life example here. Let's suppose you've got a mom and two kids. According to your Census Bureau, the poverty level for her is $27,000.

[00:03:01]She makes $11,000 a year, let's say. So, she's above the poverty level.

[00:03:06]But she also qualifies for $3,400 in refundable tax credits based on her $11,000 salary, $9,200 in food stamps, that's for her and her two children, $9,500 in housing subsidies, $900 in utility bill subsidies, $16,000 in Medicaid, $3,100 a year in free school punch uh uh free school lunches, and $6,600 a year in TANF.

[00:03:35]That's $64,100 a year.

[00:03:38]Tax-free.

[00:03:40]Is she living in poverty?

[00:03:43]>> Doesn't sound like it.

[00:03:44]>> No, but but your Census Bureau counts her as being poor.

[00:03:49]I'm not just take away her benefits. I'm saying give the American people a little credit.

[00:03:55]And I really think you need to change the definition.

[00:03:58]To to to to a definition that looks like somebody designed the damn thing on purpose.

[00:04:03]Final question. I'm going to hurry, Mr. Chairman. Why don't you just use satellite internet service? Why don't you just use Globalstar or Starlink?

[00:04:12]Yeah, you said it's the cost is $4,000 per person in Louisiana.

[00:04:17]For 600 bucks, you can buy a Starlink terminal.

[00:04:21]Why don't you just do that?

[00:04:22]And do it across America. And save a bunch of money.

[00:04:26]>> The states were responsible for determining the best outcome, and sometimes fiber in a dense location can be economically better. Sometimes satellite does not work best on the geography.

[00:04:36]>> That's not possible.

[00:04:37]Can't be cheaper.

[00:04:38]>> Math Math is Each of the states did the their best. We worked it out with them, and we moved on.

[00:04:43]>> I just don't understand. You can buy a I'm not saying do Musk. You There are others that just throw it out for bid.

[00:04:49]But 600 bucks for a terminal versus $4,000 for cyber optic? I mean, for a fiber optic?

[00:04:56]This is >> Kennedy argued that current poverty calculations overlook major non-cash benefits provided by federal programs.

[00:05:03]While Lutnick appeared unfamiliar with some of the details.

[00:05:06]The discussion highlighted a broader question facing policy makers. How should economic hardship be measured in a modern welfare system?

[00:05:15]From a Democratic perspective, government support programs have helped millions of families access health care, housing, food, and education.

[00:05:23]While poverty metrics can always be improved, many economists warn that reducing poverty to a single number risks ignoring the real challenges faced by low-income households across the country.

[00:05:35]The exchange served as a reminder that statistics shape public policy.

[00:05:39]Whether leaders favor expanding social programs or reforming them, accurate measurements are essential.

[00:05:45]The debate between Kennedy and Lutnick underscored the need for transparent data and informed decision-making, rather than political narratives alone.