ABSTRACTDuring the 1970's several policy analysts developed estimates of the effect of in‐kind transfers (e.g., Food Stamps and Medicaid) on poverty. Unfortunately, many of these studies have, drastically overstated the antipoverty impact of in‐kind transfers, leading some to claim that there are no mart? poor people in America. This article reviews these, studies, provides new evidence on the impact of in‐kind benefits on poverty, and concludes that there is still a substantial poverty problem in America today which need be addressed by policym