Representative
Chris Tuck
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December 23, 2016
Merry Christmas and Happy Holidays!
How PFDs Reduce Poverty in Alaska
A new report by the University of Alaska Anchorage Institute of Social and Economic Research reflects how Permanent Fund Dividends (PFDs) reduce poverty in Alaska. It also demonstrates that children and fixed income seniors are the principal class of Alaskans most affected by any changes to the PFD.
The report can be viewed here: http://www.iser.uaa.alaska.edu/Publications/2016_12-PFDandPoverty-Summary.pdf
The Dividend lifted about 25,000 Alaskans out or poverty in 2015, which reduced poverty in Alaska by about a third. Since 1990, PFDs have reduced poverty rates in Alaska by an estimated 2.5 to 4 percentage points annually. They have been particularly important for children, Alaska Natives, rural residents, and seniors who are much more likely to be poor than Alaskans on average.
In addition to reducing poverty and increasing income equality, the PFD over a longer time has an exponential effect on our economy. The PFD increases the average purchasing power of working families by allowing more money to be available for consumer demand while increasing the turnover rate, or velocity, of additional money into Alaska’s economy. The long-term effect is to help strengthen Alaska’s business community while making Alaska a better place to live for our families.
“One of the most glorious messes in the world is the mess created in the living room on Christmas day. Don't clean it up too quickly.”
- ANDY ROONEY
Reducing or eliminating PFDs to help fill the budget gap will significantly increase the number of Alaskans below the poverty threshold and have a negative effect on small businesses and therefore Alaska’s economy.
We must be careful in the decisions we make this year when addressing the budget deficit in Alaska. We want a policy that is fair and balanced and doesn’t unfairly burden one group of Alaskans over another group.
We are all in this together. I hope that you and your family have a holiday season that is happy and bright.
Merry Christmas and Happy New Year!
Warm regards,
![[signed] Chris Tuck](../../images/signatures/46.gif)
Chris Tuck
Alaska State Representative
District 23 - Anchorage