Poverty Rate Jumps

Written by FrumForum News on Thursday September 16, 2010

The New York Times reports:

Forty-four million people in the United States, or one in seven residents, lived in poverty in 2009, an increase of 4 million from the year before, the Census Bureau reported on Thursday.

The poverty rate climbed to 14.3 percent — the highest since 1994 — from 13.2 percent in 2008. The rise was steepest for children, with one in five residents under 18 living below the official poverty line, the bureau said.

The report provides the most detailed picture yet of the impact of the recession and unemployment on incomes, especially at the bottom of the scale. It also found that the temporary increases in benefits in last year’s stimulus bill eased the burdens on millions of families.

For a single adult in 2009, the poverty line was $10,830 in pretax cash income; for a family of four, $22,050.

The number of residents without health insurance in 2009 climbed to 51 million, from 46 million in 2008. The share of children who were uninsured fell, though, reflecting an expansion of government health programs covering low-income children. The share of uninsured adults rose, as a long-term decline continued in the number who have private health insurance. Health experts expect the share of residents without health coverage to decline in coming years as the health care overhaul adopted by Congress in March begins to take effect.

Government benefits like food stamps and tax credits, which can provide hundreds or even thousands of dollars in extra income, are not included in calculating whether a family’s income falls above or below the poverty line. But rises in the cost of housing, medical care or energy and the large regional difference in the cost of living are not taken into account either.

By any measure, living on so little income is precarious, and some experts think that people who are getting by on as much as twice the official poverty line should nonetheless be considered poor.

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Category: The Feed