Poverty Measurement in the US

Posted on January 5, 2011 by townsend

• Census releases alternative formulas for gauging poverty, By Carol Morello, January 5, 2011, Washington Post: “The Census Bureau took a baby step toward redefining what is considered poor in America on Tuesday when it released several alternative measurements of poverty, fundamentally revising a one-size-fits-all formula developed in the 1960s by a civil servant. Under a complex series of eight alternative measurements, the Census Bureau calculated that in 2009, the number of Americans living in poverty could have been as few as 39 million or as many as almost 53 million. Under the official calculation, the census estimated that about 44 million were subsisting on incomes below the poverty line of about $21,750 for a family of four. The alternatives generally set the poverty threshold higher, as much as $29,600 for a couple with two children. In September, the census estimated the nation’s poverty rate in 2009 was 14.3 percent. Under the alternatives, it could have been as low as 12.8 percent or as high as 17.1 percent. For the time being, the government will continue to use the original poverty definition to determine eligibility for federal programs. The alternatives are experimental and will be revised every year, eventually winnowing them to one…”
• Census: Number of poor may be millions higher, By Hope Yen (AP), January 5, 2011, Washington Post: “The number of poor people in the U.S. is millions higher than previously known, with 1 in 6 Americans – many of them 65 and older – struggling in poverty due to rising medical care and other costs, according to preliminary census figures released Wednesday. At the same time, government aid programs such as tax credits and food stamps kept many people out of poverty, helping to ensure the poverty rate did not balloon even higher during the recession in 2009, President Barack Obama’s first year in office. Under a new revised census formula, overall poverty in 2009 stood at 15.7 percent, or 47.8 million people. That’s compared to the official 2009 rate of 14.3 percent, or 43.6 million, that was reported by the Census Bureau last September…”