Friday, September 24, 2010

Report shows 43 million U.S. Citizens moving into low income last year

The government began keeping low income statistics in 1959. More people fell below the low income line last year than ever in the time since. A Census Bureau record released Sept. 16 revealed that 43 million within the United States of America might be officially determined as living in poverty. Individuals living in low income made up 14.3 % of the total United States population, a rise from 13.2 % the year before. Republicans are already using the brand new poverty statistics to criticize the Obama administration as midterm elections draw near. A closer look at the poverty rate over the last decade shows the GOP is complicit in causing the spike. Liberals say the poverty rate underestimates the true level of economic misery. Rightists say the poverty threshold leads to an overestimation of the number of poor people in The United States. The government agrees with both sides and will start using a different set of measurements next year with the objective of getting a cl! earer picture of United States poverty. Article source – U.S. poverty rate report exhibits record number join ranks of poor by Newystype.com.

Low income increase near worse estimations

The number of poor individuals had been increasing within the United States was no surprise. Numerous experts really expected it to be higher. Soe said it would come in at nearly 15 percent. A CNN article said if not for a drop within the low income rate among the elderly (from 9.7 to 8.9 %), the latest figures would have come in higher, according to a Census Bureau official. So, what is the poverty line? It is the least amount of income thought to be required for a tolerable living standard. Looked at that way, the current poverty threshold appears to be considerable upbeat. According to the Census Bureau, a family of four is living in poverty with an income of $22,050.

Looking to define poverty

Poverty threshold methodology was created nearly 50 years ago. The baseline was how much cash a family needs to be adequately fed. As reported by MSNBC, considerations as well as income must be added to the equation, experts say, to determine how many within the United States of America are under the poverty line. Shawn Fremstad of the Center for Economic and Policy Research told MSNBC that current poverty threshold is unrealistically low in terms of what it takes to survive in today’s economy. Beginning next year, Census officials will add elements for instance tax credits and occupation-related expenses to come up with a more definitive low income threshold. Comparing the financially poor with the rest of the population based on median income could give a more accurate reading, according to Fremstad. Median income in the United States of America was $49,777 in 2009.

Blame, but no solutions

With a pivotal election looming, conservative commentators are using the rising low income rate as an example of Democratic failure . Nevertheless, financial growth credited to the Bush administration saw a concurrent rise in poverty. As reported by the Washington Independent, Rebecca Blank of the Commerce Department said last year in congressional testimony that in the 2001 recession, the poverty rate rose as anticipated and never came down. The poverty rate rose .08 percent through the 2000s expansion. A higher percentage of Americans were financially poor at the end of the expansion than at the beginning. Bush-era economics gave low income a running start when they caused the economy to collapse.

Further reading

CNN

cnn.com/2010/OPINION/09/20/meyer.sullivan.census.poverty/index.html

MSNBC

msnbc.msn.com/id/39211644/ns/us_news-life/

Fox News

politics.blogs.foxnews.com/2010/09/15/rnc-supports-odonnell-delaware-nrsc-changes-tune

Washington Independent

washingtonindependent.com/97318/poverty-in-the-recession



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