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How Johnson Fought the War on Poverty: The Economics and Politics of Funding at the Office of Economic Opportunity

  • Martha J. Bailey (a1) and Nicolas J. Duquette (a2)
Abstract

This article presents a quantitative analysis of the geographic distribution of spending through the 1964 Economic Opportunity Act (EOA). Using newly assembled state- and county-level data, the results show that the Johnson administration directed funding in ways consistent with the War on Poverty's rhetoric of fighting poverty and racial discrimination: poorer areas and those with a greater share of nonwhite residents received systematically more funding. In contrast to New Deal spending, political variables explain very little of the variation in EOA funding. The smaller role of politics may help explain the strong backlash against the War on Poverty's programs.

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This project was supported by the National Institutes of Health (Grant HD058065-01A1 and R03-HD066145), the National Bureau of Economic Research's Dissertation Grant for the Study of the Nonprofit Sector (2011–2012), the Economic History Association's Exploratory Data Collection Grant (2011), and the Rackham Centennial Graduate Fellowship (2012).

We gratefully acknowledge the use of the services and facilities of the Population Studies Center at the University of Michigan (funded by NICHD Center Grant R24 HD041028). We are indebted to Price Fishback for editorial guidance and extensive comments. We are also grateful to Bill Collins and Bob Margo for providing their measures of riot intensity; to Price Fishback, Paul Rhode, and Michael Haines for sharing their information on farm operators in the 1930s; and to Paul Rhode for sharing information on the U.S. census plantation counties. We also thank Lee Alston, Sheldon Danziger, Daniel Eisenberg, Joe Ferrie, Price Fishback, David Lam, Robert Margo, Edie Ostapik, Marit Rehavi, Paul Rhode, Mel Stephens, Jeff Smith, John Wallis, Gavin Wright, and participants at the 2012 Cliometrics Society Meeting for helpful comments and suggestions.

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This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

Gary M. Anderson , and Robert D. Tollison . “Congressional Influence and Patterns of New Deal Spending, 1933–1939.Journal of Law and Economics 34, no. 1 (1991): 161–75.

Elizabeth Cascio , and Ebonya Washington . “Valuing the Vote: The Redistribution of Voting Rights and State Funds Following the Voting Rights Act of 1965.Quarterly Journal of Economics 129, no. 1 (February 2014): 376433.

William J. Collins , and Robert A. Margo . “The Economic Aftermath of the 1960s Riots in American Cities: Evidence from Property Values.The Journal of Economic History 67, no. 4 (2007): 849–83.

Price Fishback . “The New Deal.” In Government and the American Economy, edited by Price Fishback , 384430. Chicago: University of Chicago Press, 2007.

Price Fishback , Shawn Kantor , and John Wallis . “Can the New Deal's Three R's Be Rehabilitated? A Program-by-Program, County-by-County Analysis.Explorations in Economic History 40, no. 3 (2003): 278307.

Robert K. Fleck Population, Land, Economic Conditions, and the Allocation of New Deal Spending.Explorations in Economic History 38, no. 2 (2001): 296304.

Robert K. Fleck Voter Influence and Big Policy Change: The Positive Political Economy of the New Deal.Journal of Political Economy 116, no. 1 (2008): 137.

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John J. Wallis The Birth of the Old Federalism: Financing the New Deal, 1932–1940.The Journal of Economic History 44, no. 1 (1984): 139–59.

John J. Wallis The Political Economy of New Deal Spending Revisited, Again: With and Without Nevada.Explorations in Economic History 35, no. 2 (1998): 140–70.

John J. Wallis The Political Economy of New Deal Spending, Yet Again: A Reply to Fleck.Explorations in Economic History 38, no. 2 (2001): 305–14.

Warren Whatley . “Southern Agrarian Labor Contracts as Impediments to Cotton Mechanization.The Journal of Economic History 47, no. 1 (1987): 4570.

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The Journal of Economic History
  • ISSN: 0022-0507
  • EISSN: 1471-6372
  • URL: /core/journals/journal-of-economic-history
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