Pitchfork Economics with Nick Hanauer Poverty for Profit: How Corporations Get Rich off America’s Poor (with Anne Kim)
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Feb 25, 2025 
Anne Kim, a writer and public policy expert, delves into the disturbing reality of how major corporations exploit anti-poverty programs to boost profits rather than alleviate suffering. She highlights the role of tax prep companies and Medicaid contractors in this scheme. The discussion unveils the unethical practices behind privatization, revealing how these systems prioritize shareholder profits over essential services for the impoverished. Kim also shares potential reforms to increase transparency and enhance support for low-income individuals, advocating for a government focused on public welfare.
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Poverty Industry Profits
- The poverty industry profits from the poor through skimming, monopolist contracting, and opportunism.
- Paid tax preparers, Section 8 housing providers, and even Walmart benefit from this system.
EITC Complexity
- The complexity of the Earned Income Tax Credit (EITC) forces many to use paid tax preparers.
- These preparers take a significant cut, hindering the EITC's effectiveness.
Private Medicaid Administration
- Maximus, a private company, administers Medicaid and other programs in many states.
- Their involvement raises concerns about private companies making crucial benefit decisions.
