Defining and Measuring Poverty in Social and Political Context

As a nation, we are on a cusp: (1) 2012: the 50th anniversary of Michael Harrington’s “The Other America,” (2) 2013: the 50th anniversary of the March on Washington for Jobs and Freedom (or the Great March on Washington) on August 28th; (3) 2014: the War on Poverty (the Economic Opportunity Act of 1964); and (4) 2015: the 50th anniversary of Medicare and Medicaid (Social Security Act Amendments of 1965)

Impact of the War on Poverty

The poverty rate in

1964: 19.0%

1969: 12.1%

A decline of 36.3% in the first five years of the War on Poverty

Poverty During the Past DecadeYear Number Percent

2011 46,200,000 15.0

2010 46,200,000 15.1

2009 43,600,000 14.3

2008 39,800,000 13.2

2007 37,300,000 12.5

2006 36,500,000 12.3

2005 37,000,000 12.6

2004 37,000,000 12.7

2003 35,900,000 12.5

2002 34,600,000 12.1

2001 32,900,000 11.7

From 2001 to 2011:

an increase of 13,300,000 individuals in poverty

or

+40%

The poverty rate increased by 3.3%

or

+29%

The 2013 Poverty Guidelines for the 48 Contiguous States and the District of Columbia

Persons in Family Poverty Guidelines

1 $11,490

2 $15,510

3 $19,530

4 $23,550

5 $27,570

6 $31,590

7 $35,610

8 $39,630

For families with more than 8 persons, add $4020 for each additional person.

Roanoke, VA HUD Metro FMR Area (VA)Two Parents, Two Children

Item CostMonthly Housing $764Monthly Food $754Monthly Child Care $1617Monthly Transportation $607Monthly Health Care $1403Monthly Other Necessities $389Monthly Taxes $510Monthly Total $6043Annual Total $72513

Economic Policy Institue Family Budget Calculator

Where does the Federal Poverty Line (FPL) come from?

Mollie Orshansky:January 9, 1915 – December 18, 2006

At that time, most economists believed that the typical family spent about one-third of its disposable income

on food.

So, if we knew what a family spent on food,

we could create a poverty line by multiplying the cost of a basket of food by three.

Why was a subsistence level food basket chosen?

Why was a subsistence level food basket chosen?

Cold War politics.

Why was a subsistence level food basket chosen?

Cold War politics.

But numbers are always a matter of politics.

The Federal Poverty Line is an absolute measure.

An absolute measure establishes a line.

If a person or family is below that line, they are in poverty.

If they are above it – even by one dollar – they are not in poverty

Numbers

Federal Poverty Line (FPL) or the poverty threshold for a family of four in 2012:

$23,550

As an hourly wage:$11.32

Food Stamps:November, 2012

Supplemental Nutrition Assistance Program (SNAP)

• Participants:47,693,000

• Average Benefit:$135.72

WIC:November, 2012

Special Supplemental Nutrition Program (Women, Infants and Children, or WIC)

• Participants:8,789,000

• Average Benefit:$43.77

National School Lunch Program:November, 2012

• Average Daily Participation:31,491,000

• Participating Children (free/reduced):21,740,000

• Percent Free/Reduced:69%

School Breakfast Program:November, 2012

• Average Daily Participation:13,436,000

• Participating Children (free/reduced):11,316,000

• Percent Free/Reduced):84%

Household Income in the United States: 2011

Median:$50,054

Mean:$69,677

Household Income by Quintiles: 2011

Quintile Mean Share of Total

Top ($101,583 or more) $178,020 51.1%

Fourth ($62,435-$101,582) $80,080 23.0%

Third ($38,521-$62,434) $49,842 14.3%

Second ($20,263-$38,520) $29,204 8.4%

Bottom ($20,262 or less) $11,239 3.2%

Note: to be in the top 5%, income must be $186,000 or higher. The top 5% share of total income was 22.3%.

Median Household Income by Race and Ethnicity

Race/Ethnicity Median Household IncomeWhite, non-Hispanic $55,412Black $32,229Asian $65,129Hispanic (any race) $38,624

Earnings by Sex for Full-Time, Year-Round Workers

Sex Median EarningsMen $48,202Women $37,118

As a nation, we are on a cusp: (1) 2012: the 50th anniversary of Michael Harrington’s “The Other America,” (2) 2013: the 50th anniversary of the March on Washington for Jobs and Freedom (or the Great March on Washington) on August 28th; (3) 2014: the War on Poverty (the Economic Opportunity Act of 1964); and (4) 2015: the 50th anniversary of Medicare and Medicaid (Social Security Act Amendments of 1965)