Poverty and Inequality What Is Poverty? Population Trends and Policies

Poverty Population Trends What is poverty? During my life, where and how have I encountered poverty? Who have I known that was poor? How do I know they were poor? What were the reasons that they were poor?

Poverty is a number(s) 2007 Poverty Thresholds Population Trends and Policies

Americans in Poverty Population Trends

Poverty & Age Population Trends

Poverty & Race Population Trends

Poverty & Family Structure Population Trends

Poverty Spells Population Trends

Poverty & Geography Population Trends

Population Trends and Policies Mollie’s Miss-measure 1955 Mollie supervises a USDA study indicating that food costs constitute 1/3 rd of an average family’s after-tax cash expenditures (Wrong) Mollie calculates poverty levels as 3 times the cost of “nutritionally adequate” economy food plans that were "designed for temporary or emergency use when funds are low.” 1965 The poverty level is applied to pre-tax income and Farm/Nonfarm, gender of householder, and elderly 3 or more person households discarded Despite these and other flaws, this remains the measure of poverty today. Poverty: Arriving at the number Mollie Orshansky aka Miss Poverty Family Economist, USDA , SSA

Food Expenditures as a Share of Disposable Personal Income Population Trends

Underestimating Poverty Are families more diverse now than they were in 1965? Do the adult relationships/ages in a family influence spending? Do families spend the same proportion of their income on food now than they did in 1950? Can a family in 2006 survive on the cost of an “economy” food budget multiplied by 3? Do families eat outside the home more today than in 1965? Does food cost the same in every part of the country or even a city? Does anything cost the same in every part of the country? Does every family incur the same expenses? Population Trends

Adjusting The Poverty “Line” In 1995 a panel of poverty experts was convened to study the concepts and methods underlying the poverty measure. The expert panel recommended that: 1. Actual costs for food, clothing, and shelter, rather than a budget for food, be used; 2. A better method be used to adjust for family size; 3. Adjustment to reflect geographic differences in housing costs; 4. Government food and housing benefits not in the form of cash, and tax- related benefits such as the Earned Income Tax Credit, be included as family income; 5. Mandatory expenses such as taxes, work expenses, child care costs, child support payments, and out-of-pocket medical care costs be deducted from family income; and 6. A different Census survey, the Survey of Income and Program Participation, be used to derive annual figures on the number of poor. Population Trends

Adjusting The Poverty “Line” Since the panel returned its findings to the Joint Economic Committee of Congress, there have been no changes to the way the United States measures poverty. If you were a politician, would you be interested in promoting a new measure of poverty that when implemented would effectively increase poverty? Population Trends

Basic family budget calculator Population Trends

Poverty and Policy Programs intended to reduce poverty: “Welfare”, TANF, EITC, SSI, Food Stamps, Head Start, Housing Assistance How has welfare policy changed over the past several decades? Welfare Reforms, Changes in Budgets Have our policies been effective? Population Trends

Temporary Assistance for Needy Families (TANF) is a block grant created by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, as part of a federal effort to “end welfare as we know it.”Temporary Assistance for Needy Families (TANF) is a block grant created by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, as part of a federal effort to “end welfare as we know it.” The TANF block grant replaced the Aid to Families with Dependent Children (AFDC) program, which had provided cash welfare to poor families with children since 1935.The TANF block grant replaced the Aid to Families with Dependent Children (AFDC) program, which had provided cash welfare to poor families with children since “Welfare” Source: Center on Budget and Policy Priorities.

Population TrendsTANF 1.provide assistance to needy families so that children may be cared for in their own homes or in the homes of relatives; 2.end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage; 3.prevent and reduce the incidence of out-of- wedlock pregnancies and establish annual numerical goals for preventing and reducing the incidence of these pregnancies; and 4.encourage the formation and maintenance of two- parent families.

Population Trends TANF and Work 1.Recipients (with few exceptions) must work as soon as they are job ready or no later than two years after coming on assistance. 2.Single parents are required to participate in work activities for at least 30 hours per week. 3.Two-parent families must participate in work activities 35 or 55 hours a week, depending upon circumstances. 4.Failure to participate in work requirements can result in a reduction or termination of benefits to the family.

Population Trends Source: Center on Budget and Policy Priorities.

Population Trends Total, inflation-adjusted spending from all federal and state revenue sources on the four traditional self- sufficiency programs - child care subsidies, employment services, cash assistance, and emergency assistance - fell from $744 million in to $478 million in the budget period.Total, inflation-adjusted spending from all federal and state revenue sources on the four traditional self- sufficiency programs - child care subsidies, employment services, cash assistance, and emergency assistance - fell from $744 million in to $478 million in the budget period. Because funding for the four traditional self- sufficiency programs has not remained at levels, Oregon’s low-income families have lost a total of $861 million in support over the last decade.Because funding for the four traditional self- sufficiency programs has not remained at levels, Oregon’s low-income families have lost a total of $861 million in support over the last decade. In , despite Oregon’s return to economic growth, these programs were cut even more.In , despite Oregon’s return to economic growth, these programs were cut even more. TANF in Oregon Source: Oregon Center for Public Policy.

Population Trends By 2005, eligibility shrank to 46 percent of the federal poverty level for a mother with two children. In 1991, it was at 66 percent of poverty.By 2005, eligibility shrank to 46 percent of the federal poverty level for a mother with two children. In 1991, it was at 66 percent of poverty. Less than two percent of Oregon TANF cash assistance recipients had earnings from work in 2005.Less than two percent of Oregon TANF cash assistance recipients had earnings from work in Nationally, 25 percent of adult TANF recipients were employed in 2004.Nationally, 25 percent of adult TANF recipients were employed in The number of able-bodied families with children in Oregon who were poor in stood at about 65,000, essentially the same number as when welfare reform began in the mid-1990s.The number of able-bodied families with children in Oregon who were poor in stood at about 65,000, essentially the same number as when welfare reform began in the mid-1990s. Lifetime benefit limit of 60 months was started in 2003.Lifetime benefit limit of 60 months was started in TANF in Oregon Source: Oregon Center for Public Policy.

Population Trends

Source: Oregon Center for Public Policy.

Population Trends Source: Oregon Center for Public Policy.

Population Trends Source: Oregon Center for Public Policy.

Population Trends Source: Oregon Center for Public Policy.

Population Trends Source: Oregon Center for Public Policy.

Population Trends The Food Stamp Program has made severe hunger rare in America.The Food Stamp Program has made severe hunger rare in America. In the late 1960s, medical research found that American children suffered and died from diseases related to severe malnutrition.In the late 1960s, medical research found that American children suffered and died from diseases related to severe malnutrition. In 1979, after the Food Stamp Program became available nationwide, physicians discovered that severe malnutrition had become rare, a result they attributed to the Food Stamp Program.In 1979, after the Food Stamp Program became available nationwide, physicians discovered that severe malnutrition had become rare, a result they attributed to the Food Stamp Program. Today, the Food Stamp Program is the largest anti- hunger program in America.Today, the Food Stamp Program is the largest anti- hunger program in America. Food Stamps Source: Oregon Center for Public Policy.

Population Trends Approximately 434,000 Oregonians – 11.7 percent of the people in Oregon – use food stamps to meet their nutritional needs every month.Approximately 434,000 Oregonians – 11.7 percent of the people in Oregon – use food stamps to meet their nutritional needs every month. In 2007, the average monthly benefit per family was $176.In 2007, the average monthly benefit per family was $176. Households receive, on average, $1 dollar per person per meal in food stamp benefits.Households receive, on average, $1 dollar per person per meal in food stamp benefits. Program pumped $463 million federal dollars into the Oregon economy in 2006, generating approximately $852 million in new economic activity.Program pumped $463 million federal dollars into the Oregon economy in 2006, generating approximately $852 million in new economic activity. About 82 percent of benefits go to households with children, many in working families.About 82 percent of benefits go to households with children, many in working families. Most of the rest go to households with seniors or people with disabilities.Most of the rest go to households with seniors or people with disabilities. Food Stamps in Oregon Source: Oregon Center for Public Policy.

Population Trends Early this decade, Oregon had one of the highest hunger rates in the country.Early this decade, Oregon had one of the highest hunger rates in the country. By expanding the use of food stamps the state’s hunger rate significantly improved. Oregon used a federal policy tool – “categorical eligibility” – to reach more low-income, working families, particularly those with high child care or housing costs, and those with modest assets such as a reliable car for getting to work.By expanding the use of food stamps the state’s hunger rate significantly improved. Oregon used a federal policy tool – “categorical eligibility” – to reach more low-income, working families, particularly those with high child care or housing costs, and those with modest assets such as a reliable car for getting to work. Oregon’s hunger rate is now near the middle among all the states.Oregon’s hunger rate is now near the middle among all the states. Food Stamps in Oregon Source: Oregon Center for Public Policy.

Population Trends About 35 million Americans, including nearly one in five children, live in households that have difficulty affording food.About 35 million Americans, including nearly one in five children, live in households that have difficulty affording food. Nationally, only 60 percent of those eligible for food stamps receive them.Nationally, only 60 percent of those eligible for food stamps receive them. The program's "standard deduction" has been frozen since 1995, reducing typical monthly benefit by $37.The program's "standard deduction" has been frozen since 1995, reducing typical monthly benefit by $37. The $10 minimum benefit has not been adjusted for inflation in 30 years reducing its value by 2/3rds.The $10 minimum benefit has not been adjusted for inflation in 30 years reducing its value by 2/3rds. Since 1986, child care costs have doubled, but the cap on the allowable child care deduction has increased only slightly.Since 1986, child care costs have doubled, but the cap on the allowable child care deduction has increased only slightly. Food Stamps Source: Oregon Center for Public Policy.

Population Trends An estimated 169,000 households in Oregon live with hunger or the threat of hunger, according to USDA. This includes low-income working families with children and senior citizens living on fixed incomes.An estimated 169,000 households in Oregon live with hunger or the threat of hunger, according to USDA. This includes low-income working families with children and senior citizens living on fixed incomes. In Oregon, the participation rate is about 83 percent, one of the highest in the country.In Oregon, the participation rate is about 83 percent, one of the highest in the country. Despite Oregon’s efforts, about 76,000 eligible Oregonians miss out on food stamps.Despite Oregon’s efforts, about 76,000 eligible Oregonians miss out on food stamps. Expanding by 5% would provide for and additional 26,000 low-income Oregonians, bring about $18 million into our local economy, and result in about $33 million in new economic activity in the state.Expanding by 5% would provide for and additional 26,000 low-income Oregonians, bring about $18 million into our local economy, and result in about $33 million in new economic activity in the state. Food Stamps in Oregon Source: Oregon Center for Public Policy.

Class and Inequality Population Trends What is relative deprivation? Is relative well-being as important as absolute economic well being? How is inequality different from Poverty? Does a “rising tide lift all boats”?

Population Trends and Policies Poverty & Race: State of the Dream “Utilizing such diverse indicators as income, wealth, homeownership, poverty, unemployment, and infant mortality, this report looks at the gap between the legacy of Dr. King and the America of 2004.” Where progress has occurred in closing the black-white divide, it has been so slow that it would take decades, or even centuries, at the same pace of progress for African Americans to reach parity with white Americans. In some areas, the racial gap has actually widened since the 1960s.

Population Trends and Policies