The Center on Budget and Policy Priorities issued a new report today by Sharon Parrott, "RECESSION COULD CAUSE LARGE INCREASES IN POVERTY AND PUSH MILLIONS INTO DEEP POVERTY: Stimulus Package Should Include Policies To Ameliorate Harshest Effects Of Downturn." The report warns warns of the danger of a sharp increase in deep poverty in the U.S.  The report points out that the housing turmoil has increased the risks of homelessness and that housing vouchers are an effective way to stabilize families and prevent them from becoming destitute. The report is available at http://www.cbpp.org/11-24-08pov.pdf.

The report finds that the current downturn is likely to cause significant increases both in the number of Americans who are poor and the number living in "deep poverty," with incomes below half of the poverty line.  Accordingly, policymakers should take steps to soften the recession's harshest impacts, including the funding of additional housing vouchers.  The current turmoil in the housing sector is exacerbating the risks of housing instability and homelessness, and housing vouchers are an effective way to stabilize families and prevent them from becoming destitute.  Given the likely duration of the recession and the fact that poverty tends to continue rising even after the economy begins to expand again, the report recommends that a recovery package could include 200,000 new vouchers for 2009 and an additional 200,000 vouchers (for a total of 400,000) in 2010.   (See pp. 12-13 regarding this recommendation.) 

Read more at http://www.cbpp.org/ and at http://www.cbpp.org/11-24-08pov.htm.