Poverty Rate Crosses 15%, highest in over 50 years: U.S Census Bureau

Poverty Rate Crosses 15%, highest in more than 50 years: U.S Census Bureau

Poverty Rate Crosses 15%, highest in more than 50 years: U.S Census Bureau

Household incomes among Americans have fallen sharply, accompanied by a rise in the number of people living below the poverty line to 46.2 million, the highest in over 50 years, according to income and poverty figures released by the U.S Census Bureau yesterday.

The poverty rate is the highest recorded over the 52 years that the Census Bureau has been publishing U.S economic data, while the low median household income level reported yesterday is comparable to levels last seen in 1997.

These figures add more distress to the already disappointing economic figures released by the U.S Department of Commerce and the Labour Department about the decline in consumer spending and high unemployment levels – which are at their highest this year.

The poverty line is defined by the U.S Census Bureau as below an annual income of $22,314 for a family of four, $17,374 for a family of three, $14,218 for couples and $11,130 per year for one person.

The worst hit states are Louisiana and Mississippi, with 21.6% and 22.7% people living below the poverty line, while Connecticut with a below poverty line population of 8.3% is the best off among all the states.

Doubled Up Households

These lower income and higher poverty levels are also reflected in a growing trend of “doubled-up” households, which the report defines as households that include at least one “additional” person who is 18 or older, not enrolled in school, not the house owner and not the spouse or partner of the house owner.

According to yesterday’s Census Board report, the total number of doubled-up households recorded in spring 2007, prior to the recession, was at around 19.7 million. In comparison, by spring 2011 this number had risen by 2.0 million to 21.8 million.

This change is reflective of the 5.9 million young adults, aged 25 – 34 (14.2 percent), living with their parents’ households, as compared to 4.7 million (11.8 percent) that was recorded before the recession.

Obama’s Re-election Campaign

The Census Bureau report comes soon after President Obama’s efforts to try to pass a jobs bill with his proposed package of $447 billion in tax cuts and spending towards reviving job growth and economic recovery.

How this grim economic situation is handled and the way poverty and income numbers progress is likely to have a significant impact on President Obama’s 2012 re-election campaign.

The Jobs plan being proposed by Obama includes a payroll tax holiday for workers and employers, tax credits for employers who hire long-term unemployed workers and an extension of unemployment benefits.

Katharine Abraham, a member of the White House Council of Economic Advisers said in a statement, “It’s a good package. If it is not enacted, there could be people who experience significant problems.”

The job-creation policies being put forth by the president are being set up so as to take effect as soon as Congress passes the bill, paired with tax increases, mostly on the top 2 percent of households that make more than $250,000 a year, starting in 2013.

It is this last part of Obama’s plan however, that is already facing a lot of disagreement from the Republicans, with House majority leader, Eric Cantor, voicing his discontent with a plan that will tax “job creators” and Senate minority leader, Mitch McConnell, saying that the tax proposals were dead on arrival.

Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

Recent Posts

Audi A6 E-tron Production Launch in 2023

Audi A6 E-tron Production Launch in 2023

Audi has confirmed that there will be multiple variants of the etron, including “basic versions optimized for minimum consumption and maximum range.
9 hours ago
Royal Dutch Shell buyback lifts investor sentiment

Royal Dutch Shell buyback lifts investor sentiment

Royal Dutch Shell commences share buybacks before the end of this year while reducing its first quarter dividend to 16 cents per share, a 66% cut.
10 hours ago
Citizens Financial to acquire Investors Bancorp in $3.5 billion NYC push

Citizens Financial to acquire Investors Bancorp in $3.5 billion NYC push

Citizens Financial Group, Inc. and Investors Bancorp announced today that they have entered into a definitive agreement and plan of merger in a cash-and-stock deal worth $3.5 billi
1 day ago
Apple Q3 Earnings Break Records Again!

Apple Q3 Earnings Break Records Again!

Apple Q3 earnings prove the Cupertino giant remains unaffected by the Covid-19 pandemic as sales rise across all product lines.
1 day ago
Strong iPhone 12 sales could boost Apple’s Q3 2021 earnings

Strong iPhone 12 sales could boost Apple’s Q3 2021 earnings

Will Apple manage to post solid earnings in Q3 2021? Here’s what Wall Street’s top analysts have to say ahead of Apple’s Q3 2021 earnings report today.
2 days ago
Tesla earnings top $1 billion for the first time

Tesla earnings top $1 billion for the first time

Tesla earnings not only blew past analyst expectations but also marked the first time the automaker’s quarterly profit joined the three-comma club.
2 days ago