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This study reviews United Way's ALICE reports and explains several problems with the methodology. It also demonstrates how these results have been misinterpreted and misused in the media and elsewhere. Ultimately, the ALICE reports fail to provide a valid estimate of the financial situations of the people it intends to study and does more to mislead policymakers and the public than it does to inform them. As such, these reports distract from the real needs faced by households that struggle to make ends meet.
The Mackinac Center for Public Policy is a nonprofit research and educational institute that advances the principles of free markets and limited government. Through our research and education programs, we challenge government overreach and advocate for a free-market approach to public policy that frees people to realize their potential and dreams.
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