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NEWS

Census shows 1 in 2 people are poor or low-income

Thursday, December 15, 2011
(Updated 5:37 am)

WASHINGTON (AP) — Squeezed by rising living costs, a record number of Americans - nearly 1 in 2 - have fallen into poverty or are scraping by on earnings that classify them as low income.

The latest census data depict a middle class that's shrinking as unemployment stays high and the government's safety net frays. The new numbers follow years of stagnating wages for the middle class that have hurt millions of workers and families.

"Safety net programs such as food stamps and tax credits kept poverty from rising even higher in 2010, but for many low-income families with work-related and medical expenses, they are considered too `rich' to qualify," said Sheldon Danziger, a University of Michigan public policy professor who specializes in poverty.

"The reality is that prospects for the poor and the near poor are dismal," he said. "If Congress and the states make further cuts, we can expect the number of poor and low-income families to rise for the next several years."

Congressional Republicans and Democrats are sparring over legislation that would renew a Social Security payroll tax cut, part of a year-end political showdown over economic priorities that could also trim unemployment benefits, freeze federal pay and reduce entitlement spending.

Robert Rector, a senior research fellow at the conservative Heritage Foundation, questioned whether some people classified as poor or low-income actually suffer material hardship. He said that while safety-net programs have helped many Americans, they have gone too far, citing poor people who live in decent-size homes, drive cars and own wide-screen TVs.

"There's no doubt the recession has thrown a lot of people out of work and incomes have fallen," Rector said. "As we come out of recession, it will be important that these programs promote self-sufficiency rather than dependence and encourage people to look for work."

Mayors in 29 cities say more than 1 in 4 people needing emergency food assistance did not receive it. Many middle-class Americans are dropping below the low-income threshold - roughly $45,000 for a family of four - because of pay cuts, a forced reduction of work hours or a spouse losing a job. Housing and child-care costs are consuming up to half of a family's income.

States in the South and West had the highest shares of low-income families, including Arizona, New Mexico and South Carolina, which have scaled back or eliminated aid programs for the needy. By raw numbers, such families were most numerous in California and Texas, each with more than 1 million.

The struggling Americans include Zenobia Bechtol, 18, in Austin, Texas, who earns minimum wage as a part-time pizza delivery driver. Bechtol and her 7-month-old baby were recently evicted from their bedbug-infested apartment after her boyfriend, an electrician, lost his job in the sluggish economy.

After an 18-month job search, Bechtol's boyfriend now works as a waiter and the family of three is temporarily living with her mother.

"We're paying my mom $200 a month for rent, and after diapers and formula and gas for work, we barely have enough money to spend," said Bechtol, a high school graduate who wants to go to college. "If it weren't for food stamps and other government money for families who need help, we wouldn't have been able to survive."

About 97.3 million Americans fall into a low-income category, commonly defined as those earning between 100 and 199 percent of the poverty level, based on a new supplemental measure by the Census Bureau that is designed to provide a fuller picture of poverty. Together with the 49.1 million who fall below the poverty line and are counted as poor, they number 146.4 million, or 48 percent of the U.S. population. That's up by 4 million from 2009, the earliest numbers for the newly developed poverty measure.

The new measure of poverty takes into account medical, commuting and other living costs. Doing that helped push the number of people below 200 percent of the poverty level up from 104 million, or 1 in 3 Americans, that was officially reported in September.

Broken down by age, children were most likely to be poor or low-income - about 57 percent - followed by seniors over 65. By race and ethnicity, Hispanics topped the list at 73 percent, followed by blacks, Asians and non-Hispanic whites.

Even by traditional measures, many working families are hurting.

Following the recession that began in late 2007, the share of working families who are low income has risen for three straight years to 31.2 percent, or 10.2 million. That proportion is the highest in at least a decade, up from 27 percent in 2002, according to a new analysis by the Working Poor Families Project and the Population Reference Bureau, a nonprofit research group based in Washington.

Among low-income families, about one-third were considered poor while the remainder - 6.9 million - earned income just above the poverty line. Many states phase out eligibility for food stamps, Medicaid, tax credit and other government aid programs for low-income Americans as they approach 200 percent of the poverty level.

The majority of low-income families - 62 percent - spent more than one-third of their earnings on housing, surpassing a common guideline for what is considered affordable. By some census surveys, child-care costs consume close to another one-fifth.

Paychecks for low-income families are shrinking. The inflation-adjusted average earnings for the bottom 20 percent of families have fallen from $16,788 in 1979 to just under $15,000, and earnings for the next 20 percent have remained flat at $37,000. In contrast, higher-income brackets had significant wage growth since 1979, with earnings for the top 5 percent of families climbing 64 percent to more than $313,000.

A survey of 29 cities conducted by the U.S. Conference of Mayors being released Thursday points to a gloomy outlook for those on the lower end of the income scale.

Many mayors cited the challenges of meeting increased demands for food assistance, expressing particular concern about possible cuts to federal programs such as food stamps and WIC, which assists low-income pregnant women and mothers. Unemployment led the list of causes of hunger in cities, followed by poverty, low wages and high housing costs.

Across the 29 cities, about 27 percent of people needing emergency food aid did not receive it. Kansas City, Mo., Nashville, Tenn., Sacramento, Calif., and Trenton, N.J., were among the cities that pointed to increases in the cost of food and declining food donations, while Mayor Michael McGinn in Seattle cited an unexpected spike in food requests from immigrants and refugees, particularly from Somalia, Burma and Bhutan.

Among those requesting emergency food assistance, 51 percent were in families, 26 percent were employed, 19 percent were elderly and 11 percent were homeless.

"People who never thought they would need food are in need of help," said Mayor Sly James of Kansas City, Mo., who co-chairs a mayors' task force on hunger and homelessness.

 

Comments

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RonaldusMagnus

December 15, 2011 - 8:46 am EST

Thanks Obama for the hope and change..Your anti business policies are destroying jobs in this country. Add to that the debt and money printing that has devalued our currency. This is what you end up with. If these people are not voted out of office, they will turn US into a 3rd world country.

Bilbo

December 15, 2011 - 10:47 am EST

...actually...it's thanks GOP..for a needless 8 billion dollar war....a bunch of which wound up in Cheney's pocket...for gutting all the safety nets that YOU have obviously enjoyed...for leading the country down the road of ruin for political gain by NOT compromising..EVER...YOU should be ashamed as well....

johnodrake

December 15, 2011 - 12:04 pm EST

Care to back up those statements with a few facts?

Wilhammer

December 15, 2011 - 1:43 pm EST

These facts are self evident.

Not all men are created equal.

The GOP shall provide welfare to the rich, and tax the rest of us to make them richer.

No war can be unjust that results in profit for the Daddy Warbucks.

The poor shall remain down trodden, for the rich cannot truly be rich unless they stomp on the right of others.

No vote is so sacred it cannot be bought.

The dollar decides; the People are to suffer.

For without those truths, the conservative radicals cannot be.

And thus sayeth the 'Job Creators.'

Wilhammer

December 15, 2011 - 9:01 am EST

It is easy to say Obama's fault - it is simple and exemplary finger pointing.

The blame is the crony based political corporate system - we are in a corporate Tyranny that is fueld by unlimited campaign funding - where corporations are people and money is free speech, ironically taking those way from real people and real speech.

It started 40 years ago - not 2008.

Do you really wanted to live under the Republican Dream of Tax the Poor and Feed the rich - the anti-Robin Hood society?

I do not.

Embrace the Occupy Movement - it is time for Democracy to be By The People, For the People and not To The People and At The People.

pragmatist

December 15, 2011 - 9:06 am EST

Got to love the guy from the Heritage Foundation with the "They're doing just fine with their wide-screen TVs" line. The Heritage Foundation, and other conservative think-tanks, have adopted a new strategy: since they cannot refute the facts about income disparity, they have decided to redefine what it means to be poor or middle income in America. They have brought out reports that say that 99% of American households have electricity, compare that to places like Bangladesh, and declare: "See? They're not really "poor" at all!". They have documented the access of the middle-class to things like community college and declared, "See? They have access to affordable higher education!". They want us to believe that, regardless of income level, everything in America really is equal, as long as you accept a redefinition of "equal". After all, as the Declaration of Independence proudly states: all Men are created equal. And as the Declaration of the Heritage Foundation proudly states: Some are just more equal than others.

Laura

December 15, 2011 - 9:35 am EST

Anyone who blames Obama -- or Bush -- for the state of affairs we are in is either uneducated, naive or stupidly and stubbornly partisan. Just the way Rupert Murdoch wants you to be!

If ever there was a symbol for how the U.S. president is nothing more than a figurhead, it's that image of George W. Bush sitting in an elementary school classroom for seven minutes after hearing the words,
"The country is under attack," waiting for his handlers to tell him what to do.

And Obama is nothing more than a corporate tool and a player, cut in the same cloth as the Bush's, Biden, Cantor, the Clintons, Boehnor and the rest of the corrupt players in Washington D.C. who benefit from the status quo.

Wake up to the reality that corporations and banks now own our future and your children's. Our predatory economy is unsustainable, and it will collapse -- not because of the social safety net or entitlements -- but because of corruption and dirty dealing at the top of all our institutions. America needs business people to start working with people of good will toward a sustainable economy. The Occupy movement is not the enemy -- it's the only hope left.

itsjustron

December 15, 2011 - 12:14 pm EST

hmm, and only a few posts and the OWS propoganda starts coming. If the OWS movement is the only hope left, then I suggest we indeed, have no hope.

Sure corporations own your future, or at least anyone that employs you. I mean, really , unless you want to go into business yourself (which I highly suggest!) then you work, get a paycheck and benefits and go home!

Wilhammer

December 15, 2011 - 1:55 pm EST

OWS is Gone - Occupy is now global.

itsjustron

December 15, 2011 - 2:00 pm EST

Oh Im sorry, let me fix it, the GOWS propaganda flows.

Bosco

December 15, 2011 - 9:37 am EST

Define poor. You want to see real poor go to India or Haiti.

Wilhammer

December 15, 2011 - 10:59 am EST

So, that is the new standard for Americans - cholera and trash picking living in cardboard and tin shanty towns?

johnodrake

December 15, 2011 - 12:06 pm EST

No - but it will give you an idea of what truly poor is.

General Greensboro

December 15, 2011 - 10:33 am EST

Boy. Some of you folks are in a foul humour today. Please take it down a couple of notches.

GG

Wilhammer

December 15, 2011 - 10:53 am EST

We earned this foul mood - we are not pleased.

Respect our rights to express ourselves.

General Greensboro

December 15, 2011 - 11:08 am EST

It's fine to be angry.

It's not fine to ignore N-R.com's Terms of Use and Rules of the Road.

GG

johnodrake

December 15, 2011 - 12:07 pm EST

Two Thumbs Up! :)

Wilhammer

December 15, 2011 - 1:38 pm EST

No one has violated the terms.

General Greensboro

December 15, 2011 - 1:50 pm EST

The three comments I deleted for TOU violations say otherwise.

GG

Wilhammer

December 15, 2011 - 1:54 pm EST

did not see those - good work on keeping those nasties away from us.

Waldo Leidecker

December 15, 2011 - 12:45 pm EST

Quoting the Heritage Foundation is like turning over a rock at the RNC. Thanks to the obstructionist Republinazis we continue to support the 1% while people that work for a living get royally screwed over. REWARD THE RICH, PUNISH THE POOR - VOTE REPUBLICAN!!!

itsjustron

December 15, 2011 - 12:57 pm EST

Wow, that was a great slogan! Did you come up with that yourself?

Here, let me try..

KILL BUSINESS, KILL JOBS, VOTE DEMOCRAT!

Or

REWARD THE LAZY, PUNISH THE WORKING, VOTE DEMS!

This Fun!, I say we all join in!

Whatever, Im independent, Id just as soon, have a talking pig running the show, we would be just as well off compared to the current crop of repubs and dems.

jlh7738

December 15, 2011 - 1:05 pm EST

Talk about being callous. This take on poverty speaks volumes.
"Robert Rector, a senior research fellow at the conservative Heritage Foundation, questioned whether some people classified as poor or low-income actually suffer material hardship. He said that while safety-net programs have helped many Americans, they have gone too far, citing poor people who live in decent-size homes, drive cars and own wide-screen TVs."

Not only should poor people not live in decent sized homes, drive cars often necessary to get to and from work from a low-paying job and shouldn't own TVs is the kind of mentality that's gone way too far; almost un-American, except to these idealogues.

Citizens who join this kind of conservative mantra may soon find themselves in the very group he's denigrating.

itsjustron

December 15, 2011 - 1:21 pm EST

Ahh come on, thats not what hes saying,

What hes saying. he saying that entitlement dollars would be better spent on things like food/ health care, etc.. I'm sorry I agree with part of what he says.. Taxpayer money shouldnt be used to make sure you live in a nice house, drive a nice car, and have a 50 inch flat screen TV. It should be used to make sure you and your children have access and recieve adequate healthcare, food, and shelter, etc.

Kind of equivalent to the ruckus the food stamps caused a while back when people use the food stamps to buy lobster and filets.. Sure, its not illegal, but the priority should be, "lets buy food for 5 meals, instead of 2".. Etc..

Laura

December 15, 2011 - 1:55 pm EST

Ron, OUr tax dollars aren't being used for anything of the kind. If you are unhappy with your lot in life, look inthe mirror -- stop blaming the poor.

itsjustron

December 15, 2011 - 2:10 pm EST

Laura, Im not unhappy at all with my lot in life! Thanks for the concern! As someone who leads their church in distributing food for those who dont have it, and working in shelters with other volunteers to help people be fed, and cutting firewood off my farm for people who need it, donations to the salvation Army, and good will,.. well you get the Idea, I have NO problmes looking myself in the mirror, except on days that I havent shaved yet!

Let me be more clear, If you are accepting government assistance, to buy food, keep your house warm, etc.. for any reason the law allows basically, then there is no issue. However if your accepting, government assistance, but also buy $20,000 cars, living in $150,000 homes, and buying $1000.00 flat screens, then you obviously have the money to pay your own way and shouldnt need government assistance, thus tax dollars ARE subsidizing your lifestyle, and those Tax dollars should be redirected to someone more in need of them, make sense now?

Disclaimer: All dollar figures were random and for comparitive purposes only.

Wilhammer

December 15, 2011 - 2:11 pm EST

So, no facts....just 'made up numbers'.

well, can't argue with that!

itsjustron

December 15, 2011 - 2:18 pm EST

Silly, I didnt make the number 1,000 - 20,000, or 150,000.. Someone made those numbers up long before me! Like, geesh, biblical times or something..

But, I mean.. I know of $20,000 cars, and I have seen $1,000 TVS, and im not 100% sure, but I do believe some homes are in the $150,000 range..

Yes, actually, Im pretty sure all 3 items do exist?

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