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National poverty data is collected and calculated using the official census definition of poverty. This definition has remained fairly standard since it was introduced in the 1960’s and is useful for measuring poverty. Poverty is determined by comparing pretax cash income with the poverty threshold, which adjusts for family size and composition (U.S Census, 2001). As stated by the U.S Census Bureau (2001), “the Census Bureau uses a set of money income thresholds that vary by family size and composition to determine who is poor. If a family’s total income is less that that family’s threshold, then that family, and every individual in it is considered poor”. The existing official measure of poverty has been widely criticized. Under the procedures by which the official poverty rate is calculated, only cash income is counted in determining whether a family is poor; cash welfare programs count, but benefits from non-cash programs such as food stamps, medical care, social services, education, and training and housing are not included. Taxes paid such as social security payroll taxes, and tax credits, such as the earned income credit, are also excluded from poverty calculations (U.S Census, 2001). Poverty is not defined for people in the military barracks, institutional individuals under age 15 (such as foster children). They are excluded from the poverty universe, which means that they are considered either poor or as non-poor (U.S Census, 2001). Poverty levels differ also depending on where people live. The metropolitan poverty rate differs greatly between suburbs and the inner city. “In 2001 the poverty rate for the inner city was 16.5 percent but was more than twice the rate for the suburbs” (U.S Census, 2001). The poverty rate also varies by region and within regions. “In 2001 it was the greatest in the South at 13.5 percent and lowest in the Midwest at 9.4 percent” (U.S Census, 2001). According to Katz (1989), the social and economic transformation started in the 70’s. Whites started to heavily populate the suburbs and Blacks remained in the urban areas. Research showed Blacks and Hispanics remained the highest groups affected by poverty, and children were the most impoverished age group. Economically, the job market went through a change, and the new jobs that were available required higher education and therefore left former labor workers dislocated. The idea of “inequality of prospects” dominated the under-educated job market (Katz, 1989). According to the official measure of poverty in 2001, “11.7 percent of the total U.S population lived in a state of poverty” (U.S Census, 2001). Blacks and Hispanics generally have poverty rates that exceed the average. The poverty rate for all Blacks and Hispanics remained near 30 percent during the 1980’s and the mid 1990’s. However, soon after it all began to fall, and in 2000 the rate dropped to 22.1 percent and for Hispanics to 21.2 percent, this was the lowest rate for both these groups since the U.S started measuring poverty. In 2001, the rate was 22.7 for Blacks and 21.4 for Hispanics. Also the poverty rate for whites that were not Hispanic was below the overall poverty rate from 1959 through 2001, at a rate of 7.8 percent (U.S Census, 2001).
Approximate Word count = 2015
Approximate Pages = 8.1
(250 words per page double spaced)
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