Even with absurdly low threshold, poverty rates increase

40M Americans in Poverty
by Leigh Graham
Published September 10, 2009 @ 11:42AM PT
http://uspoverty.change.org/blog/view/40m_americans_in_poverty

The census results on poverty in the U.S. in 2008 are in, http://www.census.gov/Press-Release/www/releases/archives/income_wealth/014227.html and they're worse than we thought. The lowlights:

--Median household income declined by 3.6%, to $50,303 from around $52K.

--The poverty rate rose to 13.2% from 12.5% in 2007. That's an additional 2M Americans who have fallen below the nation's already absurdly low poverty threshold to officially qualify as poor.


--Over 46M people - or 15.4% of the population - lack health insurance.

Of course, the specter of poverty hits some groups harder than others. Median incomes for Hispanics, Southern households, and foreign-born households declined by about 5%. If you were earning $10/hour, now you're earning $9.50 - this adds up to almost $1,000 in wages lost over a year for someone already struggling full-time at such a low wage.

Almost every group is worse off, including those with comparatively low rates of poverty: households headed by married couples; non-Hispanic whites; and working age adults.

Interestingly, the number of people with health insurance also grew - because more people are receiving coverage from the government. What's that now about a public option?

Finally, income inequality is unchanged (yippee?), but the poverty rate is the highest in 11 years. It's worth combing through all the data to really get a full picture of how many more Americans have become so poor even the government has officially taken notice - your neighbors, your grandmother, your kid's friends at school, perhaps even you.

Please help us get this info out today (#PDD09!)http://uspoverty.change.org/blog/view/poverty_data_day_twitter_campaign as part of Poverty Day. And you know the drill - Take Action to Fight Poverty in America now! http://www.change.org/actions?cause_id=2704
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I think its time that something should be done about the way the government measures poverty, but that's for another post!!

:dem:

-Laelth

This reminds me of the posting style when I first came to the DU. It is so refreshing to read your post, and have that info presented in links. Thank you very much, here's a grateful kick and recommend! :kick: :bounce:

and thank you for the kind words!!:hi:

wow! that's ridiculous in this country.

Thank you for the links.

that the so called richest country on earth has people sleeping in cardboard boxes. I believe that is why we don't see this covered on the news, its too embarrassing.

that the upper crust's lifestyle had so much influence on the economy and MY lifestyle!!

The reason they consider poverty so low, is to deny a problem, so the government can deny help.

It also gives those right above the poverty line, a false sense of well being, and makes them fear losing what they do have.

living just above the poverty line, but not making enough to pay bills and barely survive "INBETWEENERS". My family falls into this category, I just payed the water bill and property taxes, but the phone and electric bills will have to wait till the next paycheck. I expect a shut off notice any day now.

since the 1980's.

But real income has shrivelled and housing and other costs are jumping by leaps and bounds.

Time to re-calibrate the poverty meter.

that shows alternative measurements of poverty.

http://nccp.org/publications/pub_825.html

but the number of people living in official poverty has grown.

I agree with the comments about the shriveling of real income v. costs, though.

I have no idea of the numbers, but there a lot of people out there that are 'off the books'. They get by with 'under the table' work and by living ten to a trailer. I have lived among them before, the one-eyed king in the land of the blind (rueful laughter). I don't know if it's a significant number, but considering that people can simply 'fall off' the unemployment counts by being out of official tax-paying work for too long, the existence of people unaccounted for in the greater scheme of things would not surprise me. Whether they are in numbers large enough to bother counting, I have no clue. All I have is anecdotal evidence from an adult life often spent among some really poor people and the knowledge that I can barely support myself, let alone a family on what I make.

And if the real cost of living vs stagnant wages was figured in and poverty adjusted for that, I think we'd find a lot more people 'in poverty'. We'll never have that adjusted accurately tho, because to do so would reveal our national disgrace. I mean, we might be forced to raise the minimum wage to somewhat closer to livable, and we can't have that! Of course, I never benefit immediately from min wage hikes. I have a trade that pays me a whole two dollars more an hour and small bumps don't affect me much. That certainly hasn't changed since the Reagan years.

:hi:

From census report (in case anyone wants $ amounts):
"As defined by the Office of Management and Budget and updated for inflation using the Consumer Price Index, the weighted average poverty threshold for a family of four in 2008 was $22,025; for a family of three, $17,163; for a family of two, $14,051; and for unrelated individuals, $10,991."

we need a REAL poverty level.

Especially when counting who has insurance and who doesn't. The disabled, children, and elderly are often in poverty, yet a good number of them are covered under Medicare/Medicaid or the local state-care systems. Their ability to have health care may still be compromised due to homelessness or lack of facilities that take subsidized care in their areas.

The uninsured are primarily workers or lower middle-class (the under 6-figures workforce). The ones that don't make enough to pay for their own insurance if their employers don't provide it - and aren't eligible for the state or federal subsidized insurance.

When a family of 4, with someone with a serious condition and a gross income of over $50K a year, is paying out of pocket around 12% of their take-home on health care, - or up to 20% - 40% if the employer doesn't provide healthcare and they either have to go on the market to find coverage or pay out of pocket, all the tax deductions in the world won't help them pay their bills.
And since their gross income is over double the poverty level, they aren't "poor", even though their ability to pay just the regular bills is pushed down to the poverty level.
Because of the cost of health care, I don't think I'd be too far off the mark adding another 5 to 7 million to the Poverty list. I may actually be figuring the number a bit low...

At pretty much any income level under $100K a year, paying for health care for a chronic or serious condition is like paying the rent or mortgage - in most cases, it needs to be done for survival. One could have fallen into a trap of "buying too much house" or a car they couldn't afford, but one really doesn't have the luxury to consider it an option to spend what it costs to be able to remain functional enough to go to work or be able to get out of bed most mornings - not to mention just to be able to remain breathing.

Haele

Its like I said before, there are many people who don't qualify as poor under the government standards. They make too much for any kind of assistance, but are in just as bad shape financially because they don't make enough to pay all their bills, including insurance. We are the "in betweeners" and have no where to turn.

:hi: thanks dajoki!!

:pals:

good job!:hug:

It just goes to show how much so many have!