Unit 3.15

Chapter 15 - Poverty & Distribution of Income

Understanding Poverty

  • Definition of Poverty:

    • A condition in which people do not have enough income to provide for their basic needs.

Determining Poverty

  • Poverty Line:

    • The minimum level of income deemed necessary to achieve an adequate standard of living in a given country.

Annual Household Income and Poverty Line in the U.S.

  • Visualization:

    • Annual income levels represented on a bar graph indicating poverty status.

    • Example Income Range:

    • $35,000

    • $30,000

    • $25,000

    • $20,000

    • $15,000

    • $10,000

    • $5,000

  • Minimum Wage Discussion:

    • Question raised: "Is the minimum wage a living wage?"

    • Statement: "WE Can't Survive on $8.25/hr"

The Working Poor

  • Definition:

    • Individuals who are employed but earn below the poverty guidelines.

  • Minimum Wage Calculation:

    • Minimum Wage x 2000 (hours worked in a year) = Annual Income

  • Federal Poverty Levels (2020):

    • Income thresholds based on household size for poverty classifications:

    • 138% Level: $17,236

    • 150% Level: $18,735

    • 200% Level: $24,980

    • 250% Level: $31,225

    • 300% Level: $37,470

    • 400% Level: $49,960

  • Specific Income Levels for Other Households:

    • Varying levels based on household size, with examples (B to M) featuring income ranges that correspond to various poverty levels for 2019-2020.

Poverty Comparison Examples

  • Child Poverty Rate (2013):

    • McHenry County, Illinois:

    • Child Poverty Rate: 9.2% compared to Illinois statewide average of 20.6%; noted changes from previous years.

  • Bankruptcies per 1,000 People (2013):

    • McHenry County: 4.60

    • Illinois: 5.05

Global Poverty Statistics

  • Population Living on Less than $1.25 a Day:

    • Chart with categories:

    • Under 2%

    • 2%-5%

    • 6%-20%

    • 21%-40%

    • 41%-60%

    • 61%-80%

    • No data available

  • Percentage of Population Living Below National Poverty Lines:

    • Various thresholds outlined (from <10% to >60%).

Characteristics of Likely Poor Individuals in America

  • Family belongs to a minority group.

  • Head of family is a female.

  • Head of family has no high school diploma.

  • Head of family is affected by physical or mental illness.

  • Family resides in a rural or urban area.

Education and Poverty Correlation

Education Levels vs. Poverty Rates:

  • No High School Diploma:

    • Poverty Rate: 25%

  • High School Diploma:

    • Poverty Rate: 11%

  • Two Years of College (Associate Degree):

    • Poverty Rate: 7%

  • Four Years of College (Bachelor’s Degree):

    • Poverty Rate: 2%

  • Six Years of College (Master’s Degree):

    • Poverty Rate: 0.3%

Causes of Poverty

  • Unemployment.

  • Low productivity.

  • Low educational levels, no skills, etc.

  • Restrictions on job entry.

  • Discrimination.

Cycle of Poverty

  • Description:

    • Consequences of being poor in America include:

    • Poorer health.

    • Reduced educational opportunities.

    • Higher rates of experiencing violence.

Results of Poverty

  • Notable Outcomes:

    • Precarious livelihoods and social exclusions.

    • Physical limitations.

    • Complications in gender relationships.

    • Issues in social relationships.

    • Lack of security, which can lead to exploitation or abuse by those in power.

    • Limited capabilities and weak community organizations.

Strategies for Reducing Poverty

  • Key Interventions:

    • Invest in infrastructure and capital to create jobs.

    • Government Programs aimed at supporting those in need:

    • Educational opportunities

    • Skills training

    • Welfare programs, including Food stamps and other aid options.