MacoEconomics Poverty Mr. Odren

What is Poverty? The Poverty Threshold People considered in poverty if income falls below poverty threshold Also called the poverty line Calculated based on costs of nutritious food, other necessities

The 2009 Poverty Guidelines for the 48 Contiguous States and the District of Columbia

What is Poverty? The Poverty Rate Poverty rate—percent of people in households below poverty threshold based on population as a whole Poverty does not hit all sectors of society equally. Most at risk: Children, minorities; inner-city, rural, and single–mother families

Factors Affecting Poverty Education—the higher the level of education, the higher the income Discrimination against minorities, women sometimes face wage discrimination, occupational segregation Demographic trends—single-parent families have more economic problems Change from manufacturing to service jobs has resulted in lower wages for low-skilled workers

General Antipoverty Programs Social Security program pays benefits to retirees, survivors, disabled Medicare is government health insurance for seniors Unemployment insurance helps laid-off workers while looking for job Food Stamps: helps with groceries Medicaid offers health care; funded by federal and state governments

How Difficult is it to Live at the Poverty Level? * You are head of a family of four with an income at the poverty level of $20,000. * Housing: $12,00 * Utilities: $2,400 * Bus to Work: $1,200 * Food: $4,200 * Health Care: $2,200 * Child Care: $2,400 BALANCE: ?? How much Money do you have now?