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Usa poverty


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Usa poverty

  1. 1. What is Poverty?• Subpar conditions compared to neighborhood, region, or country• Definition is subject to change• Ex: A person who earned $2000 a year in 1900 might have beenconsidered “well off”.Same earnings but in the later 20th century would have beenconsidered poverty- stricken.
  2. 2. Poverty in the USThe United States defines poverty through a ratio issued each year by theCensusBureau.1Developed in the mid 1960’s. There has been no major changes since itsinitialdevelopment. It is updated annually to account for inflation.1.Data from the US Department of Agriculture and fraction of income spentonfood used to calculate the ratio.
  3. 3. Calculating PovertyRatio
  4. 4. Criticism on Methods of Measure-Criticized for excluding several factors that affect economic well-beingand not being updated.-National Academy of Sciences offered a different method ofmeasurement. This measurement tends to show a higher level of overallpoverty.-Differences in measurements are usually less than 1%.
  5. 5. Poverty Definition Fluctuations
  6. 6. Poverty In a Family of Four
  7. 7. Per Year: $23,050Per Month: $1,921Per Day: $69.00Per Family Member: $17.00Historical Real MedianHousehold Income for theUnited StatesDate US2011 $50,5022010 $51,6252009 $52,6602008 $54,3492007 $55,0392006 $54,0472005 $53,274Per year: $50,502Per Month: $4,208Per Day: $175Per Family Member:$44.00
  8. 8. Los Angeles-Long Beach, CA HUD Metro FMR Area (CA)Two Parents, Two ChildrenItem CostMonthly Housing $1300Monthly Food $643Monthly Child Care $1025Monthly Transportation $401Monthly Health Care $312Monthly Other Necessities     $467Monthly Taxes $359Monthly Total $4506Annual Total $54078Budget for a Family of 4(According to the Economic Policy Institute)
  9. 9. Medicaid: provides health coverage for low-income children andadults, More than 58 million people rely on Medicaid services today(SNAP): Supplemental Nutrition Assistance Program is the nation’s mostimportant anti-hunger program.  In 2012, it helped almost 47 million low-incomeAmericans to afford a nutritionally adequate diet in a typical month.
  10. 10. The Gap between Median Income and Poverty line for a family of four
  11. 11. Affected: Children• Nearly 1 in 10 children (9.8 percent) livedbelow half of the poverty line in 2011.• Representing 16.4 million kids living inpoverty during 2011.• Children living at poverty rate is 16.4 millionor 22%
  12. 12. Child Poverty Rate in Selected Developed Nations
  13. 13. Raise Federal Minimum Wage
  14. 14. • Increasing the federal minimum wage to $10.10 by July 1, 2015, would raisethe wages of about 30 million workers, who would receive over $51 billion inadditional wages.• Across the phase-in period of the minimum-wage increase, GDP wouldincrease by roughly $32.6 billion, resulting in the creation of approximately140,000 net new jobs (and 284,000 job years) over that period.
  15. 15. Democrats vs. Republicans• Each party has a different belief system on how to dealwith poverty.• Democrats and Republicans’ ideas about what policiesthey believe will be the most effective in fighting poverty.
  16. 16. Democratic Party• The Democratic Party is currently the largest political party in theUnited States.• Has historically represented farmers, laborers, labor unions, andreligious and ethnic minorities.• The party began supporting welfare spending programs thattargeted the poor in the 1930s.
  17. 17. Republican Party• The Republican Party is the second largest politicalparty in the United States.• Do not believe in financial government aid.• Government should not get involved with business.
  18. 18. Role of the State• Republicans:– Attribute most of poverty to poor decisions made by people.– Believe government programs like welfare hinder economic progress.– Believe in minimal state involvement.– Generally believe that the government’s role in society is to maintain order, enforce socialcontracts, and maintain national security.– Tend to think the government should not try and solve poverty.– Ultimately, the market will solve the problem.• Democrats:– Government should take a more activist role in the market.– Blaming capitalism. – Government does have the power to fight poverty because it can eliminate inequality and exploitation.
  19. 19. Current Policies on Poverty• Currently, Republicans are not doing much to help the poverty level in the U.S.decrease.• Paul Ryan, (R-WI), proposed a plan creating budget cuts that will overwhelminglyaim at low-income Americans.• President Obama recently addressed the situation by stating:– Protect poor and vulnerable people as deficits are reduced.– Raise new tax revenue in a manner proportional to the capacity of the people to contribute.– Protect tax policies such as the earned income tax credit and the child tax credit that help reducepoverty.– Slow the growth of health care costs and find bipartisan solutions for the common good.
  20. 20. Trend:Rich RicherPoor PoorerPoor Poorer• The riches come out of recession becoming richer• although some decrease in value of assets, the rich’s livelihoodis not affected• provided with good investment entry points when market isdepressed• While the poor, who are impacted the most by recessions,come out poorer.• impact on them could mean loss of home and/or job:livelihood threatened.• decrease in tax revenue directly affects welfare programsfundings• not benefited from the depressed market since they had littleto no capital to invest.
  21. 21. Historical Numbers and Rates
  22. 22. steady increase from 80ssteady increase from 80sonwards, despite peace andonwards, despite peace andinternational economicinternational economicgrowth in this period, markedgrowth in this period, markedwith “feats” such as Ronaldwith “feats” such as RonaldReagan’s revival of privateReagan’s revival of privatesector, and Bill Clinton’ssector, and Bill Clinton’sbudget surplus.budget surplus.downward slope amid wardownward slope amid warefforts in Vietnam and theefforts in Vietnam and theonset of Arms Race andonset of Arms Race andSpace War with the USSR.Space War with the USSR.Government was moreGovernment was morefocused on social welfarefocused on social welfareduring this period too.during this period too.
  23. 23. Coming out of the recession,Americans “share” their pie....This is whereThis is wheremost of us fitmost of us fitin, nowin, nowimagine theimagine thepoor.....poor.....
  24. 24. The Trend is Clear, but do you really know how bad it is ?we think the rich makes about 100xof what the poor makes
  25. 25. Reality is....of thenation’swealthgoes tothe7% shared among...the 1% took home 24% of the nation’s wealth in 1976; now do you see the trend?
  26. 26. SourcesWaldron, Travis. "Two-Thirds Of House GOPs Budget Cuts Come From Programs For Low-Income Americans | ThinkProgress." ThinkProgress. N.p., n.d. Web. 15 Apr. 2013. <>."Obama address hits on social policy issues faith-based groups advocate - Bread for the World: Have Faith. End Hunger.." Homepage - Bread for the World: Have Faith. End Hunger..N.p., n.d. Web. 15 Apr. 2013. <>.Merritt, Hillary. "The poverty debate: Democrats and Republicans on how to solve poverty - Atlanta Poverty |" Welcome to | N.p., n.d.Web. 15 Apr. 2013. <>."Democratic Party Facts." N.p., n.d. Web. 15 Apr. 2013. <>.Chart Book:SNAP Helps Struggling Families Put Food On The Table. Center on Budget and Policy Priorities. Web. 15 April. 2013. Department of Agriculture (Snap Program);US, Census Bureau estimates of Individual below 130% of poverty).2013 Federal Poverty Guidelines. Families USA The Voice for Health Care Consumers. Outlook, Analysis and forecast. Better Policies For Better Lives. 16 April. 2013. Economic Policy Institute. Working Economics. April 14. 2013. U.S. Poverty Rate remains high, middle class Income declines. University of Washington. April 14. 2013. America. What America buys. April 14. 2013.>U.S. Department of State. Congressional Services Reports. April 14.2013.>United States Census Bureau. April 14.2013.>income disparity potentially a cause for financial crisis. distribution of wealth of income inequality