Economics End Poverty Poverty in the United States
| Poverty in the United States |
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Poverty is defined as a state of privation and a lack of necessities. It is also defined as the state of one who lacks a usual or socially acceptable amount of money or material possessions. The nation's poverty rate rose to 15.1% (46.2 million), up from 14.3% (approximately 43.6 million) and to its highest level since 1993. The government's definition of poverty is based on total income received. For example, the poverty level for 2011 was set at $22,350 (total yearly income) for a family of four. Most Americans (58.5%) will spend at least one year below the poverty line at some point between ages 25 and 75. There remains some controversy over whether the official poverty threshold over- or understates poverty. The most common measure of poverty in the United States is the "poverty threshold" set by the U.S. government. This measure recognizes poverty as a lack of those goods and services commonly taken for granted by members of mainstream society. The official threshold is adjusted for inflation using the consumer price index. Relative poverty describes how income relates to the median income, and does not imply that the person is lacking anything. In general the United States has some of the highest relative poverty rates among industrialized countries. According to a 2008 report released by the Carsey Institute at the University of New Hampshire, on average, rates of poverty are persistently higher in rural and inner city parts of the country as compared to suburban areas. The number of people in the U.S. who are in poverty is increasing to record levels with the ranks of working-age poor approaching 1960s levels that led to the national war on poverty. Since the 1960s, the United States Government has defined poverty in absolute terms. When the Johnson administration declared "war on poverty" in 1964, it chose an absolute measure. The "absolute poverty line" is the threshold below which families or individuals are considered to be lacking the resources to meet the basic needs for healthy living; having insufficient income to provide the food, shelter and clothing needed to preserve health. Two changes were made to the poverty definition in 1969. Thresholds for non-farm families were tied to annual changes in the Consumer Price Index (CPI) rather than changes in the cost of the economy food plan. Farm thresholds were raised from 70 to 85% of the non-farm levels. The U.S. government's approach to measuring poverty has remained static for the past forty years.
Recent poverty rate and guidelinesUnited States Department of Health and Human Services (HHS) figures for poverty in 2011 Persons in
Family Unit 48 States Alaska Hawaii The poverty guideline figures are not the figures the Census Bureau uses to calculate the number of poor persons. The figures that the Census Bureau uses are the poverty thresholds. The Census Bureau provides an explanation of the difference between poverty thresholds and guidelines.[16] The Census Bureau uses a set of money income thresholds that vary by family size and composition to determine who is in poverty. The 2010 figure for a family of 4 with no children under 18 years of age is $22,541, while the figure for a family of 4 with 2 children under 18 is $22,162.[17] For comparison, the 2011 HHS poverty guideline for a family of 4 is $22,350. Number of poor are hard to compare across countries. Absolute income may be used but does not reflect the actual number of poor, which depend on relative income and cost of living in each country. Among developed countries, each country then has its own definition and threshold of what it means to be poor, but this is not adjusted for cost of living and social benefits. For instance, despite the fact that France and US have about the same threshold in terms of dollars amount for poverty, cost of living and health benefits may differ (with universal health insurance coverage for poor people in France). In general, it might be better to use the Human Poverty Index (HPI), Human Development Index (HDI) or other global measure to compare quality of living in different countries. [edit] Relative measures of povertyAnother way of looking at poverty is in relative terms. "Relative poverty" can be defined as having significantly less access to income and wealth than other members of society. Therefore, the relative poverty rate is a measure of income inequality. When the standard of living among those in more financially advantageous positions rises while that of those considered poor stagnates, the relative poverty rate will reflect such growing income inequality and increase. Conversely, the poverty rate can decrease, with low income people coming to have less wealth and income if wealthier people's wealth is reduced by a larger percentage than theirs. In 1959, a family at the poverty line had an income that was 42.64% of the median income.[citation needed] If the poverty line in 1999 was less than 42.64% of the median income, then relative poverty would have increased. Some critics argue that relying on income disparity to determine who is impoverished can be misleading. The Bureau of Labor Statistics data suggests that consumer spending varies much less than income. In 2008, the “poorest” one fifth of Americans households spent on average $12,955 per person for goods and services (other than taxes), the second quintile spent $14,168, the third $16,255, the fourth $19,695, while the “richest” fifth spent $26,644. The disparity of expenditures is much less than the disparity of income.
Poverty and demographics Poverty and family statusAccording to the US Census, in 2007 5.8% of all people in married families lived in poverty, as did 26.6% of all persons in single parent households and 19.1% of all persons living alone. By race/ethnicity and family status, based on data from 2007 Among married couple families:
5.8% lived in poverty. This number varied by race and ethnicity as follows: Among single parent (male or female) families: 26.6% lived in poverty.
22.5% of all white persons (which includes white Hispanics), Among unrelated individuals living alone:
19.1% lived in poverty This number varied by race and ethnicity as follows: Poverty and race/ethnicity The US Census declared that in 2010
15.1% of the general population lived in poverty: About half of those living in poverty are non-Hispanic white (19.6 million in 2010), but poverty rates are much higher for blacks and Hispanics. Non-Hispanic white children comprised 57% of all poor rural children. Poverty and age The US Census declared that in 2010
15.1% of the general population lived in poverty: Factors in poverty There are numerous factors related to poverty in the United States.
Income has a high correlation with educational levels. In 2007, the median earnings of household headed by individuals with less than a 9th grade education was $20,805 while households headed by high school graduates received $40,456, households headed holders of bachelor’s degree earned $77,605, and families headed by individuals with professional degrees earned $100,000.
In many cases poverty is caused by job loss. In 2007, the poverty rate was 21.5% for individuals who were unemployed, but only 2.5% for individuals who were employed full time.
In 1991, 8.3% of children in two-parent families were likely to live in poverty; 19.6% of children lived with father in single parent family; and 47.1% in single parent family headed by mother.
Income levels vary along racial/ethnic lines: 21% of all children in the United States live in poverty, about 46% of black children and 40% of Latino children live in poverty. The poverty rate is 9.9% for black married couples and only 30% of black children are born to married couples In 2007,11% of black women aged 30–44 without a high school diploma had a working spouse. The poverty rate for native born and naturalized whites is identical (9.6%). On the other hand, the poverty rate for naturalized blacks is 11.8% compared to 25.1% for native born blacks suggesting race alone does not explain income disparity. Not all minorities have low incomes. Asian families have higher incomes than all other ethnic groups. For example, the 2005 median income of Asian families was $68,957 compared to the median income of white families of $59,124. Asians, however, report discrimination occurrences more frequently than blacks. Specifically, 31% of Asians reported employment discrimination compared to 26% of blacks in 2005.
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