1. Facing Economic Challenges
Poverty
Facing Economic Challenges

2. Key Questions

3. Poverty & Income distribution
What Is Poverty?
The Poverty Threshold
People are considered in poverty if income falls below poverty threshold
Also called the poverty line
Based on costs of nutritious food, necessities
differs by size of household
adjusted annually
A state or condition in which a person or community lacks the financial resources and essentials to enjoy a minimum standard of life and well-being that's considered acceptable in society.

5. 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

6. Poverty Rates for Children 1999-2010

7. The Problem of Poverty Factors Affecting Poverty
Education—the higher the level of education, the higher the income
Discrimination—against minorities, women
Includes 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

8. Income Distribution
Income distribution—how income is divided among people in a nation
Income inequality—unequal distribution of income; some always exists

10. Antipoverty Programs Programs for Low-Income Households
Supplemental Security Income (SSI)
Provides cash to meet basic needs in food, clothing, and shelter for disabled people
Supplemental Nutrition Assistance Program (SNAP), formerly the Federal Food Stamp Program
Created to provide nutritious food
Medicaid
Provides medical care
Earned-income tax credit (EITC)
refunds taxes deducted from paychecks
ABC’s
TANF, MTO, LIHEAP, CHIP, HOPWA, etc.
TANF: Temporary Assistance for Needy Families
LIHEAP: Low Income Home Energy Assistance Program
CHIP: Children’s Health Insurance Program
LIFELINE: Provides phone and discounted phone service to low income individuals
EITC: Earned Income Tax Credit
MTO: Moving to Opportunity, provides housing vouchers to move out of projects
HOPWA: Housing Assistance for People With AIDS

11. Median Household income