Poverty in America The Economics of Poverty

Statistics Poverty in America Over half the world lives on under $2.00 per day. In 2003, over 12% of all Americans were classified as below the poverty line. New York Ranks Number 18 with over 13.5% below poverty line.

Statistics Poverty in America Nationally, Onondaga County ranks number 81, with 12.9% impoverished.

What is Poverty? Poverty in America Relative Poverty: A situation where people are poor in comparison to other poor people. Absolute Poverty: A situation where people are classified as impoverished according to a standard.

Income Distribution Poverty in America Income Distribution: The division of income in the economy among different groups of people.

Income Distribution Poverty in America Distribution of income in 2002, according to rich vs. poor. Poorest 20% of Nation3.4% Poorest 40% of Nation12.2% Poorest 60% of Nation27.1% Poorest 80% of Nation50.3% 100% of Nation100% The chart shows how the richest 20% of Americans income make up almost 50% of the Nation’s total income. The poorest 20% of the nation receive only 3.4% of the nation’s total income.

What is Poverty Line? Poverty in America A level of income below which a household is considered poor. Poverty line annual income according to household size. One Person Family$ 9,183 Two Person Family$ 11,756 Three Person Family$ 14,480 Four Person Family$ 18,307 Five Person Family$ 21,141 Six Person Family$ 23,588 Seven Person Family$ 25,865 National

Poverty Breakdown Poverty in America When below the poverty line, where does one’s money go? Yearly Food Expenditures: $ 3,649 Per person per day that is: $ 2.51 Monthly Spending: $ 1,216 “This money is used for rent, fuel, utilities, insurance, transportation, clothing, medical and dental needs, educational expenses, entertainment, and taxes” (Brux 135).

Has Poverty Improved? Poverty in America Since the mid 1990s we poverty percentages have been slowly decreasing, with the exception of 2001 and Percentage of population living under poverty line: Lowest

Who is Impoverished? Poverty in America Broken down by race, age, and residence. Race and Ethnicity White Black Hispanic Asian Age Aged under 18 Aged Years Aged over 65 Residence Urban Suburban Rural

Causes of Poverty Poverty in America Recession, or decline in national GDP, is a major cause of poverty in the United States. Decrease in Labor Productivity: Fewer skills, limited education, and limited experience make obtaining a job less likely. Economic Changes: Technological advances in the economy have helped to create poverty in America. Firms have replaced human workers with robots in many cases. In other cases, not everyone adapts to the change in technology well, and are left behind.

Causes of Poverty Poverty in America Recession, or decline in national GDP, is a major cause of poverty in the United States. Personal Problems: Lack of job readiness can also lead to unemployment and poverty. Those with mental disabilities, inexperience, or immaturity are placed in this category. An example includes single parent homes, where parents must take off work to tend to their children. Some people basically lack the maturity level to work. Many times these people go to work late, unprepared, or not at all.

Causes of Poverty Poverty in America Recession, or decline in national GDP, is a major cause of poverty in the United States. Minimum Wage: Minimum wage is a government set level at which an employer cannot pay any less per hour for one’s services. Nationally, the minimum wage is set at $ 5.15 per hour. With a forty hour work week this adds to $ 10,712, well below the poverty line. In New York State, the minimum wage will go to $ 7.15 per hour in January of 2007, a yearly income of $ 14,872… still far below the poverty line.

Combating Poverty Poverty in America Medicaid: A program offered to those who cannot afford medical care on their own. Broken down by household size, income. One Person Family$ 692 Two Person Family$ 900 Three Person Family$ 1,017 Four Person Family$ 1,025 Five Person Family$ 1,034 Six Person Family$ 1,134 Seven Person Family$ 1,275

Combating Poverty Poverty in America New York’s Child Health Plus: A program offered to those who cannot afford medical care for their children. Social Security: Federal Government Program offered to those retired, survivors of dead workers, and disabled. Unemployment: Funding from federal and state governments paying those who do not have a job.

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