1. Unit 3 Economic Challenges
Poverty:
What is the face of poverty?

2. What images come to mind?

3. Poverty in America
The United States Bureau of the Census goes to great lengths to gather data about the American people. Every ten years they conduct extensive surveys so that economists can analyze the characteristics of our population.
In September 2010, the Bureau discovered that 43.6 million people in America are living in poverty.

4. How do you define poverty?
According to the government, a poor family is one whose total income is less than the amount needed to satisfy a family’s basic needs.
The income level below which income is sufficient to support a family or household is referred to as the poverty threshold.
Persons in Family or Household
Poverty Threshold in Lower 48 States 1
$10,956 2
$13,991 3
$17,098 4
$21,954

5. Who lives in poverty?
The percentage of people who live in households with incomes below the poverty threshold is called the poverty rate.
Poverty can differ greatly by various groups in the United States, and several factors lead to these realizations.
Race and ethnic origins
Family type
Residence
Age

6. Race and Ethnic Origins
What races or ethnic origins may be more likely to live in poverty? Why?
African Americans and Hispanic Americans are more than twice as likely to be living in poverty.
1 in 4 African Americans and 1 in 5 Hispanic Americans live below the poverty rate.

7. Type of Family and Age
Families with single parents have a poverty rate 6 times greater than 2 parent homes.
What age group has the highest poverty rate?
Children have a poverty rate significantly higher than any other age group.

8. Residence What are some causes of poverty?
Where are those living in poverty most likely to live?
Those living in the inner city are twice as likely to live in poverty.
Rural America has a significant portion of the population living in poverty.
What are some causes of poverty?

9. Causes of Poverty Lack of Education
High school dropout earned 1/3 less than graduates and 2 ½ times less than college graduates
Location
Those living in inner cities and rural areas find few employment opportunities and are often forced to commute long distances
Racial and Gender Discrimination
White workers earn more than minorities, and men earn more than women
Economic Shifts
Uneducated individuals are usually the “Last ones hired, first ones fired”
Shifts in Family Structure
The rise in divorce rates have led to a rise in poverty among single parents