Given that Hurricane Katrina in particular exposed the wound of poverty, we're using this WeeklyDIVA to hone in on some of the statistics surrounding poverty in the United States.
In stark contrast with each other, two recent reports reveal growth at opposite ends of the income spectrum in the United States: the number of millionaires grew last year and so did the number of people living in poverty. While the country added 700,000 more millionaires to total 8.9 million, another 1.1 million folks slipped below the poverty line to total 37 million people nationwide.
What does it mean to live below the poverty line?
For a family of four, it means living on $19,300 a year or less, according to the Census Bureau. About 12.7% of the population lives below the poverty line. In New Orleans, a city of 500,000 people, 28% live in poverty -- more than twice the national rate -- equaling 140,000 people.
What are the demographics of poverty?
A recent report from the Census Bureau breaks down a myriad of poverty, income and health insurance coverage demographics in the United States. Here's a sampling of some:
Percent of people living in poverty by race and Hispanic origin:
24.7% of Blacks (unchanged from 2003)
21.9% of Hispanics (unchanged from 2003)
9.8% of Asians (decreased from 2003)
8.2% of non-Hispanic Whites (increased from 2003)
Number of children under age 18 in poverty: 17.8% (unchanged from 2003)
Median Household Income: $44,389 (unchanged from 2003)
Number of uninsured people in U.S. 45.8 million, or 15.75 (unchanged from 2003) -- the number of those who are insured increased by 2 million to 245 million people.
The big picture
In 1964, President Lyndon Johnson declared a "War on Poverty." Since that time, the number of people in poverty has fluctuated between about 25-40 million people. The 2004 figure of about the same as the 1964 figure -- around 37 million. The overall population has grown, so the rate has dropped. (See Census Graph on page 16: "Number in Poverty and Poverty Rate: 1959-2004.") The current rate is a three-year high.
Why hasn't the poverty rate changed much? There are many reasons.
- Productivity, job growth and wages play a role. The Median household income has barely budged in four years.
- A recent New York Times story explains that certain areas have a history of concentrated poverty, like Appalachia (click on the "Map of Appalachia" on this site to see where it is).
-The publisher of the New York Daily News argues that immigration is to blame.
With poverty back on the radar screen for lawmakers, look for conversation about tabling tax cuts, a revisiting the Earned Income Tax Credit (EITC) -- a tax credit for families with low incomes, and likely the use of poverty as a talking point in Congressional races next year.
More resources:
National Poverty Center, The University of Michigan
