1. Poverty

2. Poverty Poverty Threshold Poverty Guidelines
The benchmark used to evaluate the income that people receive
Poverty Guidelines
Guides to determine who is eligible to receive certain federal programs

3. Distribution of Income
Lorenz Curve

4. Reasons for Income Inequality
Education
Usually the more education, the higher pay
In the last 30 years, there is a widening gap between well educated and poorly educated
Wealth
Wealth gap creates issues with the ability to earn income
Tax Law Changes
Changes to the system allow for a greater earning potential for higher income earners

5. Reasons for Income Inequality
Decline of Unions
Heavy manufacturing jobs are leaving the US and union membership is falling
Less skilled workers are generally dependent on union wages
More Service Jobs
New and lower paying jobs are changing our economic structure
Monopoly of Power
Some high paying professions have limited the number of people who can enter

6. Reasons for Income Inequality
Discrimination
While it is illegal, discrimination does still occur in a lot of professions, driving out minority groups to other lower paying professions
Change in Family Structure
The shift from the traditional two-parent household to a single-parent household drives down family income

7. Antipoverty Programs Income Assistance General Assistance
Cash assistance
General Assistance
Food Stamps
Medicaid
Social Service Programs
Child abuse prevention, foster care, family planning, job training, child welfare, and day care

8. Antipoverty Programs Tax Credit Enterprise Zones Workfare Programs
Earned Income Tax Credit
Enterprise Zones
Areas within some cities where businesses can build and operate with reduced or no taxes to promote jobs
Workfare Programs
Program where welfare recipients work for their benefits
Negative Income Tax
Proposed program to give money to the lowest earners

9. Questions
Which reason for income inequality do you think is the largest contributor? Explain your answer
What happens if we eliminate Antipoverty Programs? Short term and long term?
Out of the Antipoverty Programs listed in the book, which do you think has the highest potential? Explain