Sabrina Tavernise, Poverty Rate Soars to Highest Level Since 1993, N.Y. Times, Sept. 14, 2011, at A1:
Another 2.6 million people slipped into poverty in the United States last year, the Census Bureau reported Tuesday, and the number of Americans living below the official poverty line, 46.2 million people, was the highest number in the 52 years the bureau has been publishing figures on it.
… The past decade was also marked by a growing gap between the very top and very bottom of the income ladder. Median household income for the bottom tenth of the income spectrum fell by 12 percent from a peak in 1999, while the top 90th percentile dropped by just 1.5 percent. Overall, median household income adjusted for inflation declined by 2.3 percent in 2010 from the previous year, to $49,445. That was 7 percent less than the peak of $53,252 in 1999. Part of the income decline over time is because of the smaller size of the American family.
This year is not likely to be any better, economists said. Stimulus money has largely ended, and state and local governments have made deep cuts to staff and to budgets for social programs, both likely to move economically fragile families closer to poverty.
Minorities were hit hardest. Blacks experienced the highest poverty rate, at 27 percent, up from 25 percent in 2009, and Hispanics rose to 26 percent from 25 percent. For whites, 9.9 percent lived in poverty, up from 9.4 percent in 2009. Asians were unchanged at 12.1 percent.
And last month, PBS ran a strong piece as part of an occasional series on inequality in America:
Watch the full episode. See more PBS NewsHour.
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Sabrina Tavernise, Poor Are Still Getting Poorer, but Downturn’s Punch Varies, Census Data Show, Sept. 15, 2011, at A25:
Two worrisome numbers in the report raise questions about the recent response of the safety net. Poverty has risen especially fast among single mothers. More than 40 percent of households headed by women now live in poverty, which is defined as $17,568 for a family of three.
That is the first time since 1997 that figure has been so high. Analysts attribute the rise in part to changes in the welfare system, enacted in the mid-1990s, which make cash aid much harder to get. Those changes were credited with encouraging recipients to work in good times, but may leave them with less protection when jobs disappear.
… Poor people not only grew more numerous — 46.2 million — but also poorer. Among the poor, the share in deep poverty (defined as having less than half the income to escape poverty) rose to the highest level in 36 years: 44.3 percent.
The census data may overstate hardship by failing to count some benefits the needy receive, like tax credits and food stamps. But it also may also understate their needs by failing to adjust for health care expenses and variations in the cost of living.
About 20.5 million people are in deep poverty, with food stamps increasingly replacing cash aid as the safety net of last resort. More than 45 million people get food stamps, an increase of 64 percent since January 2008. About one in eight Americans, and one in four children, receives aid. Using an alternative definition of income, the Census Bureau found that food stamps lifted 3.9 million people above the poverty line.
Sam Roberts, As Effects of Recession Linger, Growth in City’s Poverty Rate Outpaces the Nation’s, N.Y. Times, Sept. 22, 2011, at A23:
Poverty grew nationwide last year, but the increase was even greater in New York City, the Census Bureau will report on Thursday, suggesting that New York was being particularly hard hit by the aftermath of the recession.
From 2009 to 2010, 75,000 city residents were pushed into poverty, increasing the poor population to more than 1.6 million and raising the percentage of New Yorkers living below the official federal poverty line to 20.1 percent, the highest level since 2000. The 1.4-percentage-point annual increase in the poverty rate appeared to be the largest jump in nearly two decades.
Many New Yorkers were spared the worst of the recession, but the median household income has since shriveled to levels last seen in 1980, adjusted for inflation. Household income declined among almost all groups — by 5 percent over all since the beginning of the recession in 2007, to $48,743 in 2010.
Manhattan continued to have the biggest income gap of any county in the country, with the top fifth of earners (with an average income of $371,754) making nearly 38 times as much as the bottom fifth ($9,845).
Poverty among children under 18 rose 2.9 percentage points to 30 percent. The rate also increased for every other group except people 65 and older. Single mothers, blacks and adults lacking a high school diploma fared worst. Among Hispanic single mothers in the Bronx, the poverty rate was nearly 58 percent.
The bureau’s 2010 American Community Survey paints a disturbing portrait of the city. More New Yorkers depended on some form of public assistance than in 2009, and a record 1.8 million residents — nearly one in five households — are now relying on food stamps. Fewer people had health insurance, home ownership declined and housing values plunged; 44 percent of renters were diverting at least 35 percent of their income for housing.