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« Wesley Clark Tried to Bribe Me | Main | How the Internet Boom Helped Tiny Tuvalu » January 7, 2004How Poor is Poor in America?The Census Bureau's 2003 annual report on poverty in the United States counted nearly 35 million "poor" people in the country in 2002, a small increase over 2001. It's election year, so you can count on Democrats to highlight the data as "proof" that President Bush's economic policies are failing, leaving millions destitute. Except, er, most "poor" people in America aren't that poor by world or American historical standards. The Heritage Foundation has just published a very helpful report, Understanding Poverty in America, on the nature of poverty in America (summary here, 19-page PDF here). According to the authors of the report: If poverty means lacking nutritious food, adequate warm housing, and clothing for a family, relatively few of the 35 million people identified as being "in poverty" by the Census Bureau could be characterized as poor.Chances are, the poor have many of the same things you have. For most Americans, the word "poverty" suggests destitution: an inability to provide a family with nutritious food, clothing, and reasonable shelter. But only a small number of the 35 million persons classified as "poor" by the Census Bureau fit that description. While real material hardship certainly does occur, it is limited in scope and severity. Most of America's "poor" live in material conditions that would be judged as comfortable or well-off just a few generations ago. Today, the expenditures per person of the lowest-income one-fifth (or quintile) of households equal those of the median American household in the early 1970s, after adjusting for inflation.Here's a link to the 40-page PDF file of the Census Bureau's report, Poverty in the United States: 2002. The report is based solely on income - and, as the Heritage Foundation's thorough response explains:Forty-six percent of all poor households actually own their own homes. The average home owned by persons classified as poor by the Census Bureau is a three-bedroom house with one-and-a-half baths, a garage, and a porch or patio.As a group, America's poor are far from being chronically undernourished. The average consumption of protein, vitamins, and minerals is virtually the same for poor and middle-class children and, in most cases, is well above recommended norms. Poor children actually consume more meat than do higher-income children and have average protein intakes 100 percent above recommended levels. Most poor children today are, in fact, supernourished and grow up to be, on average, one inch taller and 10 pounds heavier that the GIs who stormed the beaches of Normandy in World War II. The Census Bureau defines an individual as poor if his or her family income falls below certain specified income thresholds. These thresholds vary by family size. In 2002, a family of four was deemed poor if its annual income fell below $18,556; a family of three was deemed poor if annual income was below $14,702. There are a number of problems with the Census Bureau’s poverty figures: Census undercounts income, ignores assets accumulated in prior years, and disregards non-cash welfare such as food stamps and public housing in its official count of income. However, the most important problem with Census figures is that, even if a family’s income falls below the official poverty thresholds, the family’s actual living conditions are likely to be far higher than the image most Americans have in mind when they hear the word "poverty."So cheer up. If you're "poor" in America, you're probably not. Posted in Economy & Business
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I've said this plenty before, and it doesn't earn me any friends, but there is no real poverty in America. There are people who can't afford a typical middle-class lifestyle, but most of them hardly qualify as poor by any reasonable standard. Those who do live in poverty in America do so voluntarily; there are plenty of shelters to feed them and take them in. Ah, but if they all flocked to shelters there wouldn't be enough beds, right? Well, why not cross that bridge when we get to it. And for those wondering, I've seen poverty first-hand in the Philippines. It's not pretty. Posted by: Michael Chaney at January 7, 2004 09:20 PMWe were having a discussion in the lunch room one day and a democrat overheard me. Response was something like, I hope you never have to be poor. My response was poor like an American or poor like someone in Bangladesh? Posted by: Sandy P. at January 7, 2004 10:00 PMAccording to the definition I'm poverty stricken. Now, if I had to pay for my medical care and all my housing costs I'd be in a real poor way, but that's not because my disability payments are bad, more because we've let certain items get over priced. You get right down to it, we've started confusing what we want with what we need. And we're willing to shell out too much for it. Are there things I'd like to have? Yes, but complaining about how unfair the world is aint gonna change a thing. Are there things I'm going to need? Of course. A new Macintosh for one thing. This beast I've got is getting old, and it can't handle OSX safely. So it's save money up and hope I get a tip or two at my site. (No pressure.:)) In the meantime I do without and make do. I realize it's unAmerican, but sometimes you have to be a rotten cad.:p Posted by: Alan Kellogg at January 7, 2004 10:06 PMNice spin, but let's not gloss over the I seem to recall reading that the middle class grew under the previous administration. Vote for a Republican, get a recession. Posted by: Odin at January 8, 2004 01:26 PMNo... it's vote for a republican because a recession is underway. That's what happened this time. The Clinton recession had begun, then we elected Bush, now the recession is over and the Bush Boom is underway. Posted by: Bill at January 8, 2004 01:43 PMThat's what I love about you Republicans. You shamelessly make up "facts" and try to pass them off as gospel. Contrary to what the liar in the White House and the propagandists on Fox "News" tell you, there was no Clinton recession. According to the NBER, the recession began in March Here's some factoids for you: "Census data released today show that poverty increased and median household income fell in 2002 for the second consecutive year. The number of poor people increased by 1.7 million to 34.6 million; the poverty rate rose from 11.7 percent to 12.1 percent; and median household income fell by $500, or 1.1 percent, to $42,409. There were 3 million more poor people in 2002 than in 2000, the last year before unemployment began to rise." http://www.cbpp.org/9-26-03pov.htm Pay particular attention to the last sentence. Then get a clue. The accepted definition of a recession is two successive quarters of shrinking GDP. When Bush took office January 1, 2001 the GDP was shrinking. Thus, two quarters later when the numbers were in, the recession which began in the first quarter of 2001 could be labelled. Posted by: Anya at January 8, 2004 07:39 PMThe NBER, the official arbiter of when U.S. recessions begin and end, looks at a broader range of economic indicators than just quarters of shrinking GDP. Furthermore, according to the NBER, This may be of interest: http://www.nber.org/cycles/november2001/ Posted by: Odin at January 9, 2004 12:10 AMMichael - When was the last time you visited the slums in New Orleans? Or Clarksdale, Mississippi? Or almost any place in the Mississippi Delta...? There may little poverty here that is on par with Africa or the Philippines? But your viewpoint is still INSANE!
I'd cut Michael more slack. I for one have not seen poverty in the Philipines, and "poverty" here is not extremely hard to live through. Heck, my parents went through it. Now, with hard work, we're middle-class citizens with $1,000 computers, $150,000 homes and big-screen tv's. However, I will have to get on my two own feet soon after college. I guess it is a bit scary after all. But, if I become poor the only person I can blame is myself. I will not take government hand-outs, none of my ancestors have yet, even through extreme farmer-poverty. Posted by: Greg at January 11, 2004 05:31 PMJust one home, btw. Not homes. Posted by: Greg at January 11, 2004 05:31 PMHi Greg, Who's paying for your college education if you're not your "two own feet" yet? You sound like you've led a Until life has knocked you down a few times, don't be too sure what you I don't know about poverty there, but here when the homeless are turned away from shelters too filled to meet demand, some of them freeze to death every winter. Posted by: Odin at January 14, 2004 02:17 PMPost a comment
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