Supplemental Poverty Measure

Posted on November 7, 2011 by townsend

• US poverty at new high: 16 percent, or 49.1M, By Hope Yen (AP), November 7, 2011, San Francisco Chronicle: “A record number of Americans – 49.1 million – are poor, based on a new census measure that for the first time takes into account rising medical costs and other expenses. The numbers released Monday are part of a first-ever supplemental poverty measure aimed at providing a fuller picture of poverty. Although considered experimental, they promise to stir fresh debate over Social Security, Medicare and programs to help the poor as a congressional supercommittee nears a Nov. 23 deadline to make more than $1 trillion in cuts to the federal budget. Based on the revised formula, the number of poor people exceeds the record 46.2 million, or 15.1 percent, that was officially reported in September…”
• Seniors falling into poverty faster in new census measure, By Esmé E. Deprez, November 7, 2011, San Francisco Chronicle: “More Americans, and a greater percentage of the elderly, were poor in 2010 than the U.S. Census Bureau estimated in September, new figures from the agency show. The bureau used an alternate method to calculate that 16 percent of Americans, or 49.1 million people, lived in poverty in 2010, up from the official rate of 15.2 percent, or 46.6 million, according to a report released today. The new measure put the proportion of indigent Americans 65 and older at 15.9 percent, an increase from the official 9 percent rate. Among those under 18, the new rate was 18.2 percent, a drop from the official rate of 22.5 percent. The new Supplemental Poverty Measure is a ‘more complex statistic,’ showing how much families spend on food, shelter, clothing and utilities, the bureau said. It finds that medical out-of-pocket expenses have the largest proportional effect on disposable income of any expense or benefit, and takes into account how geographic differences can alter housing costs…”
• New data show grim picture of poverty, By Allison Linn, November 7, 2011, msnbc.com: “More Americans are living in difficult circumstances than the official data show, according to a new and sobering gauge of poverty. The new indicator, called the Supplemental Poverty Measure, estimates that 49.1 million were grappling with very difficult economic circumstances in 2010, compared with 46.6 million under the standard poverty definition. The poverty rate under the supplemental measure is 16 percent, compared with 15.2 percent under the official measure…”