chapter two

learning objectives

Official Poverty Measure (OPM)

Calculated as the cost of a minimal diet multiplied by 3, adjusted annually for inflation and family size.

Problems with Official Poverty Measure

Overlooks non-cash income and regional cost-of-living; uses outdated spending assumptions, leading to underestimation.

Numeric Extent of U.S. Poverty

In 2010, 46.2 million people (15.1%) were officially poor; almost 1/3 of U.S. residents experienced episodic poverty.

Evaluate myths about work motivation among the poor.

The myth that the poor lack work motivation (the “lazy poor” myth) is contradicted by data, as approximately 80% of poor adults are either working, looking for work, too young/old, disabled, or serving in the military.

Racial/Ethnic Poverty Differences

While non-Latino Whites form the largest number of poor, people of color (e.g., Blacks at 27.4%, Latinos at 26.6%) experience disproportionately higher poverty rates.

Feminization of Poverty

A social pattern showing that females (16.2%) have a higher poverty rate than males (14%), resulting in more women and girls living in poverty.

Poverty by Age Group

Children under 18 have the highest poverty rate (22%), and together with seniors (65+), they make up over 43% of all poor individuals in the U.S.

Regional Poverty Disparities

The Southern U.S. has the highest poverty rate (16.9%) compared to other regions.

Poverty and Family Type

Female-headed single families face the highest poverty rate (31.6%), leading to a high percentage of children living in poverty in these households.

Low-Income Nations

Geographically, low-income nations are primarily located in Sub-Saharan Africa and parts of South Asia.

What is the Official Poverty Measure (OPM)?

Created by government economist Mollie Orshansky (1963); calculated as (cost of a minimal diet imes 3) based on 1955 spending assumptions.

What are the main problems with the Official Poverty Measure (OPM)?

Includes outdated spending assumptions (food is no longer
$1/3$ of budgets), ignores non-cash income like food stamps, and does not account for regional cost-of-living variations, leading to systematic underestimation of poverty.

What is the Supplemental Poverty Measure (SPM)?

A more comprehensive measure that adds costs beyond food, geographic cost variation, taxes, and in-kind benefits, providing a more realistic picture of poverty (e.g., 16% in 2010 compared to OPM's 15.1%).

What is Twice-Poverty ('Near Poverty')?

An income level defined as $\text{2} \times \text{OPM}$, representing approximately the income needed to meet basic needs; over
$1/3$ of Americans live below this line, indicating they are one crisis away from official poverty.

What is episodic poverty?

Experiencing poverty for
$\ge$2 consecutive months; between 2004-2007, almost
$\text{1/3}$ of U.S. residents experienced this, while only 2.2% were poor for all three years.

What is the demographic reality of racial/ethnic poverty in the United States?

Non-Latino Whites constitute the largest number of poor (42.4%, 19.6 million), while racial/ethnic minorities like Blacks (27.4%) and Latinos (26.6%) experience disproportionately higher poverty rates.

What is meant by the "Feminization of Poverty"?

It refers to the phenomenon where females and girls experience higher poverty rates than males; in 2010, 16.2% of females were poor compared to 14% of males.

How does age relate to poverty rates in the U.S.?

Children (<18) have the highest poverty rate at 22%, and combined with seniors (65+), they account for over 43% of all poor individuals.

Which regions of the U.S. have the highest and lowest poverty rates?

The South (16.9%) has the highest poverty rate among U.S. regions, followed by the West (15.3%), Midwest (13.9%), and Northeast (12.8%).

How do different family structures correlate with poverty rates?

Female-headed single-parent families have the highest poverty rate at 31.6%, significantly higher than married-couple families (6.2%) or male-headed single families (15.8%).

Does data support the myth that poor individuals lack work motivation?

No, the stereotype that poor individuals lack work motivation is contradicted by data showing approximately 80% of the poor are working, looking for work, too young/old, disabled, or serving in the military.

How does the functionalist view explain poverty?

Poverty is a byproduct of necessary social stratification, where rewards (income/prestige) motivate individuals to fill important societal roles.

According to the conflict view, what causes poverty?

Poverty arises from power struggles, exploitation, and systemic discrimination (class, race, gender) between 'haves' and 'have-nots,' protecting elite interests.

What is the focus of the symbolic-interactionist view regarding poverty?

It examines the daily meanings, identities, and interactions shaped by class, revealing the lived experience, coping strategies, and stigma associated with poverty.

What is the individualistic explanation of poverty?

Poverty stems from the values, impulsivity, or lack of ambition of individuals, often conceptualized as a 'culture of poverty.'

What is the structural explanation of poverty?

Poverty results from systemic issues such as discrimination, inadequate schooling/health care, and broad economic shifts like de-industrialization.