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Coonoor Behal

http://www.census.gov/prod/2011pubs/acsbr10-17.pdf - 2 views

    • Coonoor Behal
       
      Why aren't poverty thresholds different based on cost of living across different states and cities? Does it make sense for the poverty threshold in NYC to be the same as Boise?
    • Vetan Kapoor
       
      Good point. My guess would be that the poverty line is calculated based on some basket of goods deemed vital to function at a basic level, and that most of these goods are within a fairly narrow price range (food, clothing etc.). Also the highest expenditures are probably in rent/housing (30-50% of income) and for low income folks these should be pretty comparable giving housing vouchers and other HUD type assistance?
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    "People living in poverty tend to be clustered in certain neighborhoods rather than being evenly distributed across geographic areas."
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    "...living in areas with many other poor people places burdens on low-income families beyond what the families' own individual circumstances would dictate."
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    "some government programs target resources to communities with concentrated poverty. Many of these programs use the Census Bureau's definition of "poverty areas" (census tracts with poverty rates of 20 percent or more)"
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    "the South had a larger proportion of people (27.4 percent) living in poverty areas than any other region, followed by the West (21.6 percent)."
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    "Nearly half (49.0 percent) of the 10.3 million people residing in category IV tracts lived in poverty, while a little more than a quarter (27.3 percent) of the 56.6 million in category III were in poverty."
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    "More than one-half of the families in categories I, II, and III were married-couple families while only 43.2 percent of families in category IV tracts were married couples. Female householder families represented about 14 percent of families in category I tracts, but 46.2 percent of families in category IV tracts."
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    "The poverty thresholds are updated annually to allow for changes in the cost of living using the Consumer Price Index (CPI-U). They do not vary geographically."
Coonoor Behal

The poor in America: In need of help | The Economist - 0 views

  • Mr Obama’s re-election and Democratic control of the Senate give federal anti-poverty programmes a level of security they would have lacked under a Romney administration. But America’s poor face systemic challenges beyond the aid of any single administration or programme.
  • Most counties exhibiting persistent poverty—meaning counties with poverty rates of 20% or higher, consistently, from 1990 to 2010—are indeed in rural America (see map).
  • For most, poverty will be a temporary condition; chronic poverty remains relatively rare. But it does seem to be growing more common.
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  • Another problem which got worse during the crisis, but was growing beforehand, is suburban poverty.
  • As of 2008 more than a third of America’s poor live in suburbs.
  • The number of poor people living in the suburbs grew 53% between 2000 and 2010
  • The eightfold growth in the prison population from 1970 to 2010 has turned ever more poor decisions into poor lives.
  • Most poor children live in single-parent homes, and most families that are poor lack married parents.
  • The amount the federal government spends on food stamps hit a record $75.7 billion in the 2011 fiscal year—more than double the level of 2008. Enrolment in Medicaid, through which federal and state governments provide health care to low-income Americans, has grown every year since 2008, though its 2012 growth was the slowest since the recession began, and its spending grew at a lower level than enrolment because of federal and state cost-control measures. In 2011 states disbursed $113.3 billion in unemployment benefits to 9.9m recipients, as well as roughly $16.6 billion received in block grants as part of a federal programme called Temporary Assistance for Needy Families.
  • America is unusually reluctant, compared with other rich countries, about giving cash transfers to the poor.
  • Its benefits skew overwhelmingly toward families: the most a single person can claim is around $500, while a married couple with three or more dependent children can receive $5,000 or more. In 2010 $55 billion was paid out through the EITC, and $23 billion for the child tax credit.
Coonoor Behal

National Poverty Center | University of Michigan - 2 views

  • The methodology for calculating the thresholds was established in the mid-1960s and has not changed in the intervening years.
  • Money income does not include noncash benefits such as public housing, Medicaid, employer-provided health insurance and food stamps
  • The poverty rate for children has historically been somewhat higher than the overall poverty rate.
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  • Since the late 1960s, the poverty rate for people over 65 has fallen dramatically.
  • The poverty rate for people in households headed by single women is significantly higher than the overall poverty rate.
  • In 2010, 19.9 percent of foreign-born residents lived in poverty, compared to 14.4 percent of residents born in the United States. Foreign-born, non-citizens had an even higher incidence of poverty, at a rate of 26.7 percent.
  • Children represent a disproportionate share of the poor in the United States; they are 24 percent of the total population, but 36 percent of the poor population.
  • The official poverty measure has been criticized for not accounting for several factors that can affect a family's economic well-being and for not having been updated, except for inflation, for four decades. 
  • For example, while cash benefits from government assistance programs are included in a family's income when calculating the official poverty measure, benefits received in-kind such as food stamps, Medicare or Medicaid, employer provided health insurance, housing subsidies, and other social services are excluded.  Taxes that families pay and tax credits they receive such as the Earned Income Tax Credit (EITC) do not enter into the official poverty determination.
  • Additionally, the threshold value a family must earn to escape poverty was developed in the 1960s by combining emergency food budget data from the US Department of Agriculture with an estimate of what fraction of income families spend on food. Although the thresholds are adjusted each year for inflation, some analysts believe that these numbers no longer accurately reflect the minimal resources a family requires.
  • These alternative measures tend to show lower levels of poverty than the official measure in any year, but the timing of increases and decreases in the poverty rate is very similar across measures. This similarity suggests that, despite the criticism it receives, the official poverty measure provides a reliable indicator of changes in the poverty rate from year to year.
  • These alternative definitions tend to show higher levels of overall poverty than the official measures in any year, although the difference is usually less than one percentage point.
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    Nuts that the only time the poverty threshold is lower is for single individuals age 65 and older. Seems like you'd have greater expenditures in your old age considering health care costs.
Vetan Kapoor

Notes from "The Price of Civilization: Reawakening American Virtue and Prosperity" by J... - 0 views

Ch 3: The Free-Market Fallacy * 63% of Americans concur that "It is the responsibility of government to take care of people who can't take care of themselves. The sentiment that government should h...

started by Vetan Kapoor on 22 Mar 13 no follow-up yet
Coonoor Behal

Casey B. Mulligan: A Tale of Two Welfare States - NYTimes.com - 0 views

  • Beginning next month, Britain will strive to put its welfare system on a different path by unifying many programs under a single “universal credit” system, what the department describes as an “integrated working-age credit that will provide a basic allowance with additional elements for children, disability, housing and caring.” The department forecasts that its “universal credit will improve financial work incentives by ensuring that support is reduced at a consistent and managed rate as people return to work and increase their working hours and earnings.”
  • The Congressional Budget Office estimates that the Affordable Care Act’s means-tested subsidies and cost-sharing will implicitly add more than 20 percentage points to marginal tax rates on incomes below 400 percent (see Page 27 of the C.B.O. report) of the poverty line (a majority of families fit in this category) by phasing out the assistance as family incomes increase, although a number of families will not receive the subsidies because they already get health insurance from their employer.
  • In summary, the United States intends to move in the direction of more assistance programs and higher marginal tax rates, while Britain intends to move in the direction of fewer programs and lower marginal tax rates.
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