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OCR Page 1 of 44The Economic Report of the President: Examining the Economic Well-Being of Children
President Clinton is committed to investing in the future of our children. The
Administration has adopted a number of strategies to ensure that children grow up in a economically
and socially stable environment. These efforts have resulted in a dramatic improvement in the
overall welfare of our children. The Administration will continue to invest in these and other new
initiatives to improve upon the gains they have already made.
THE RESULTS
A Decline in the Poverty Rate. The official poverty rate among children trended upward from
1969 to 1993. Recently, however, that trend has been reversed, with the child poverty rate declining
by 2.2% between 1993 and 1996. The recent expansion of the Earned Income Tax Credit (EITC) is
largely responsible for this reduction.
An Increase in the Availability of Food. The percentage of children living in households without
enough to eat has fallen from 4.1% in 1989-1991 to 3.0% in 1994-1996 for all children, and from
13.5% to 9.4% for children in households with incomes below 130% of the poverty line.
An Improvement in the Adequacy and Quality of Housing. The percentage of all households
with children living in housing with moderate to severe physical problems fell from 8.7% in 1978 to
7.2% in 1995, and from 18% to 12.9% for very low income renters. In addition,
households with children were less likely to live in crowded living situations in 1995 than in 1978:
the percentage of people living in housing with more than one person per room dropped from 9.4%
to 6.6% for all households and from 21.9% to 17% for low-income rentals.
Lower Infant Mortality Rates. Infant mortality rates fell from 9.8 deaths per 1,000 births in 1989
to 7.2 per 1,000 births in 1996. Mortality rates have also continued to decline since the mid-1980's
for all children and youths except those aged 15-19.
Increased Access to Health Care. The proportion of children who are enrolled in Medicaid
increased from 16% in 1989 to 23% in 1995. By 1996 all pregnant women and all children under
the age of 6 who had family incomes below 133% of the poverty line were eligible for Medicaid.
The average number of physician visits per year rose by more than 30% for poor children in fair or
poor health, and by more than 10% for poor children in excellent or good health.
More Child Support Payments. From 1992 to 1996 child support payments increased by 50%, to
a record $12 billion.
Gains in Educational Test Scores. Results from the National Assessment of Educational Progress
(NAEP) suggests that achievement in math, science and reading has improved since the late 1970s.
These gains have been especially dramatic for black and Hispanic students in mathematics and
science.
CHALLENGES AHEAD
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