That 'Official' Poverty Rate? It's Much Worse than You Think

[unhappycamper]

That 'Official' Poverty Rate? It's Much Worse than You Think
AlterNet / By David DeGraw

September 23, 2010 | While the shocking new poverty statistics from the Census Bureau indicating that a record 43.6 million Americans lived in poverty in 2009 emphatically demonstrates the severity of the economic crisis, the Census is drastically undercounting this demographic. Apparently the government's poverty statistics are as accurate as its unemployment statistics.

~snip~

Let’s revisit the 2008 Census total stating that 39.8 million Americans lived in poverty. It turns out that the National Academy of Science did its own study and found that 47.4 million Americans actually lived in poverty in 2008. The Census missed 7.6 million Americans living in poverty that year.

How did that happen? The Census Bureau uses a long outdated method to calculate the poverty rate. The Census is measuring poverty based on costs of living metrics established back in 1955 -- 55 years ago! They ignore many key factors, such as the increased costs of medical care, child care, education, transportation, and many other basic costs of living. They also don’t factor geographically based costs of living. For example, try finding a place to live in New York that costs the same as a place in Florida.

~snip~

Now let’s look at the poverty line these numbers are based on: $22,050 for a family of four. Let me repeat that: $22,050 for a family of four. That breaks down to $5,513 per person, per year. I don’t know about you, but I can’t imagine living in the United States on $459 per month. That amount will barely get you a good health insurance policy, never mind food, clothes and a roof over your head. No wonder why a record 50.7 million Americans do not have health insurance. (Beware: 50.7 million Americans without health insurance is a government-based number. If you had health insurance for only one day last year, you are not counted in this total.)

Clearly, the Census is setting the income level for its poverty measurement extremely low. If we were to increase that measure by just a small increment, to $25,000 for a family of four, I estimate that the National Academy of Science would come up with a number of nearly 100 million Americans in poverty.

[Hannah Bell]

1. $800/month for rent or housepayment takes $9600 of that off the top.

[mdmc]

4. yup

[rustyd55]

2. its bad

it will get worse and the repubs want to do away with health care and keep tax cuts for the most wealthy so we get sick they would rather let us just die without treatment as long as they get their tax cuts and the middle class is poverty today and they dont know it yet but the upper middle class is next if the republicans have their way

[w8liftinglady]

3. and yet...those in my area think this is "good"-and favor

decreasing taxes and keeping people at minimum wage....you know-THE GOOD CHRISTIANS who live in my county.Health care is a non-issue to them.It doesn't affect them...yet.(a large proportion are on Medicare).

[TBF]

5. It's interesting that the "good christians" decry government

programs while living off Social Security. Personally I think Social Security and Medicare are examples of programs that may not be perfect, but have helped millions (maybe billions) of people. I'd like to see that age requirement deleted from Medicare so everyone can buy in. I would think with the new enrollees the program would have even more clout to "negotiate" with providers/insurers. That is the change I was hoping to see with this administration ...

[Starry Messenger]

6. k & r

[old mark]

7. I live near Reading, PA, a small city in the mountains in Berks County. The poverty rate

in the city is over 35%. There were many old tech factories that employed a lot of city families. Some of them paid very well and allowed for a good life for a lot of people and a good economy with lots of (real) small businesses and relatively wealthy suburbs. It is an old city thta has long been involved with manufacturing and industry - it for some time a large center for middle class free black people, mostly skilled workmen and craftsmen, going back to the early 1800's. Industry has largely abandonded Reading, and the largest employer is now government and civil service. There are still jobs available, some good jobs, but they are scarce and they choose the most desirable (youngest) qualified applicants. Many older laid off workers are working menial jobs, if they can find them.

This used to be a prosperous working class city, and it is slowly coming back, but it is nothing like it was 10 years ago.

mark

[indepat]

8. Chillingly bogus data: in 1955, my entire college expenses (room, board, tuition, fees, and books)

for a school-year (three quarters) at a state university were less than $1,000. And yes, the $1,000 also included clothing, my health insurance premium ($3 per month as I recall), and my student season football ticket for six games ($6). Chillingly bogus indeed to measure any current expense/cost-of-living numbers against 1955 data. ;)