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Poverty in the US  

"Poverty often deprives a man of all spirit and virtue; it is hard for an empty bag to stand upright."

-Benjamin Franklin

Although the United States is the wealthiest country in the world, a significant portion of its population lives in poverty, as defined by the poverty line. Although the magnitude and conditions of poverty in the United States do not compare to those of some other regions in the world, there is the  uncertainty, danger, and unfulfilled hope for United States citizens living in poverty. 


Measuring Poverty in the United States

The United States defines poverty in absolute terms. This is the threshold below which families or individuals are considered to be lacking the resources to meet the basic needs for healthy living: insufficient income to provide the food, shelter and clothing needed to preserve health.  The European Union, on the other hand, measures poverty in relative terms. This is defined as having significantly compromised access to income and wealth than other members of society: an income below 60% of the national median equalized disposable income after social transfers for a comparable household (1).  If poverty in the United States were to be defined in relative terms as determined by the European Union, the level would be much higher.

Poverty in the United States is measured in two ways. The first, defined by the U.S. Census Bureau, measures the poverty thresholds.  Poverty thresholds classify households by type of residence, race, and other social, economic, and demographic characteristics. This data generally used for statistical purposes in order to  to estimate the number of people in poverty nationwide. The second measure is the poverty guideline. Used by the U.S. Department of Health and Human Services, it determines whether a person or family is eligible for assistance through various federal programs.

In 1965, all departments of the Executive Branch of the US government adopted the "Orshansky Poverty Thresholds" to determine poverty levels for statistical use. This method, developed by Mollie Orshansky, an economist working for the Social Security Administration, defines an absolute measure, adopted to objectively evaluate levels of poverty in the United States. The measure uses a range of income thresholds, adjusted for factors such as family size, gender of the family head, number of children under 18 years old, and farm or non-farm residence. Many scholars and policymakers argue that the methods used to determine "Orshansky Poverty Thresholds" are outdated and misrepresent the levels of poverty in the United States as lower than they actually are.   

Learn more about the development of the "Orshansky Poverty Thresholds."

Learn about Poverty Measurement Studies and Alternative Methods by the U.S. Census Bureau.


"The Other America"

(6)

"Unfortunately, many Americans live on the outskirts of hope -- some because of their poverty, and some because of their color, and all too many because of both. Our task is to help replace their despair with opportunity(3)."

- President Lyndon B. Johnson

1962, Michael Harrington published The Other America, a groundbreaking study of poverty in the United States.  Read by Presidents John F. Kennedy and Lyndon B. Johnson, Harrington's book brought, for the first time, the reality of millions of Americans to the public eye.  It was a call for action and was one of the driving forces behind the American response to poverty, a series of policies which became known as the "War on Poverty."  Since Harrington's book, many authors, politicians, and speechwriters have continued to use the expression, "The Other America" in order to describe the tragedy of so many living in poverty despite the enormous wealth and potential surrounding them.  

The term "War on Poverty" was first used by President Lyndon B. Johnson in his 1964 State of the Union address in order to set in motion a series of initiatives designed to decrease the levels of poverty in the United States.  Such initiatives included the creation of the Office of Economic Opportunity (now within the Department of Health and Human Services), Head Start, Medicare and Medicaid, food stamp programs, and work study programs.

Click here to listen to National Public Radio's (NPR) Madeleine Brand discuss the 40th Anniversary of President Lyndon Johnson's "War on Poverty" with historian Robert Dallek.

Click here to listen to NPR's discuss with Johnson administration officials who served on the front lines of the "War on Poverty" and its legacy today. 

In the last four decades, some of the objectives of the "War on Poverty"  have been met.  Social Security and Medicare have significantly reduced poverty amongst the elderly, and food stamps have made severe hunger in the United States mostly a thing of the past. In 1959, the first year poverty statistics were collected, 55% of African Americans were below the poverty line. By 1966, that had fallen to 41.8% and in 2005, it was 24.7%.  Today, the bipartisan supported Earned Income Tax Credit supplements the inadequate wages of the working poor and helps lift millions into the lower middle class.  When President Johnson announced the "War on Poverty," over 20% of Americans lived in poverty, while in the last decade the rate of Americans living in poverty remained between 10-13%.

Despite the some success in the effort against poverty, it continues to remain an important and difficult issue for the United States to address.  In recent years, poverty has generally increased, despite signs of economic recovery.  Most recent, the aftermath of Hurricane Katrina brought the tragedy of poverty to the national stage, as millions of Americans watched in horror as the poorest and least able of citizens struggled to survive in what appeared to be unimaginable conditions.  For many Americans, the event brought to attention the scope and breadth of poverty, along with its many contributing factors.  This sentiment was articulated by Senator Barack Obama when he said, "I hope we realize that the people of New Orleans weren't just abandoned during the hurricane; they were abandoned long ago—to murder and mayhem in the streets, to substandard schools, to dilapidated housing, to inadequate health care, to a pervasive sense of hopelessness(2)."

Read the report, "Child Poverty in States Hit by Hurricane Katrina," by Columbia University's National Center for Children in Poverty.

Watch a video from NBC News, 'Katrina exposes New Orleans' deep poverty


The State of Poverty in the United States

In parts of Appalachia, speciffically the central region, many low-income families continue their struggle with make-do shelter. Photo by Kim MacDonald(8)

According to the U.S. Census Bureau, in 2005, nearly 12.6% of the United States' population, or thirty-seven million people live in poverty.  Minorities face higher levels of poverty, with 24.9% of African-Americans living in poverty and 21.8% of Hispanics.  Furthermore, poverty rates for children under the age of eighteen remained higher than those between the age of eighteen and sixty four, at 17.6%.

Read the full report by the U.S. Census Bureau

Click here for Urban and Rural Poverty fact sheet from the University of Michigan.  Includes numerous statistics and links for urban and rural poverty.

Along with higher rates of poverty amongst minorities, there are certain demographics and areas within the U.S. that contain significant populations of people living in poverty.  These include:

Click the above links for more information about each topic.   

Place the mouse arrow over the map to see individual state poverty statistics(4).

Poverty Stats

 
Total in Poverty:
Percent of Total Population:

(7)
Top Ten Lists (5):

Sources Cited
(1) EU Commission; http://ec.europa.eu/employment_social/news/2001/oct/i01_1395_en.html
(2) Newsweek
(3) Washington Post;http://www.washingtonpost.com/wp-dyn/content/article/2005/09/18/AR2005091800988.html
(4) Map from Google Images
(5) USCCB;http://www.nccbuscc.org/cchd/povertyusa/povfact3.shtml
(6) Picture from the LBJ Presidential Library
(7) State poverty estimates from U.S. Census Bureau
(8) Picture from Habitat for Humanity


This page has been created by Senior Honors Institute Fellow Dylan Borchers.
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Last updated: Thu. Jan-11-07, 15: 13
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