Poverty & Inequality Study Notes

Notes for Exam 2

Poverty & Inequality - Part 1

Course Information

• Class: SW 200

• Instructor: Tina Thompson, LMSW

Poverty Defined

• Definition by United Nations (1998):
  "Poverty is a denial of choices and opportunities, a violation of human dignity. It means lack of basic capacity to participate effectively in society. It means not having enough to feed and cloth[e] a family, not having a school or clinic to go to, not having the land on which to grow one’s food or a job to earn one’s living, not having access to credit. It means insecurity, powerlessness and exclusion of individuals, households and communities. It means susceptibility to violence, and it often implies living on marginal or fragile environments, without access to clean water or sanitation."

Financial Implications of Wealth Distribution

• Taxation and Poverty:

  • "IF THE TOP 1% OF AMERICANS JUST PAID THE TAXES THEY OWED, NOT PAID MORE TAXES, WE AS A NATION COULD RAISE AN ADDITIONAL $175 BILLION EVERY YEAR. THAT IS JUST ABOUT ENOUGH TO PULL EVERYONE OUT OF POVERTY, EVERY PARENT, EVERY CHILD, EVERY GRANDPARENT.” (NPR, 2023)

Measures of Poverty

• Absolute Poverty Levels:

  • 1992: $13,950/year

  • 2017: $24,600/year

  • 2023: $30,900/year

• Relative Poverty Levels:

  • 1992: $14,228/year

  • 2017: $35,423/year

  • 2023: $44,485/year

• Comparison of Absolute vs. Relative Poverty

Current Poverty Guidelines (US Department of Health and Human Services, 2025)

Problems with Current Poverty Measures

• Criticism of Official Poverty Measure:

  • According to the U.S. Census Bureau, the official poverty measure has been criticized for being narrow and outdated, relying on a bare-bones food budget from the 1960s.

  • It neglects other major expenses such as housing and childcare.

  • Furthermore, it does not account for geographical differences in the costs of living. (Haider, 2021)

Social Worker's Perspective on Poverty

• Prevalence:

  • Poverty is considered one of the most prevalent and persistent social injustices in the U.S., with an official poverty rate of 10.6% in 2024, translating to 35.9 million individuals.

  • Child poverty statistics indicate that

  • 14.3% of children (10.3 million) lived in poverty.

  • The rates of poverty are disproportionately higher among children of color, with 1 in 9 children of color and 1 in 6 children under 5 years of age affected, which has increased from a rate of 5.2% in 2021 (American Rescue Plan).

  • In 2024, a staggering 65% of Americans reported being just one paycheck away from being homeless.

• Advocacy Requirements:

  • For case advocacy, social workers must understand the services, supports, and programs available to clients in need of financial support.

  • For cause advocacy, there is a need to comprehend the systemic, persistent, and intersectional nature of poverty to instigate necessary changes.

The Feminization of Poverty

Gender Pay Gap Visualized

• The gender pay gap and equal pay days vary across different races and ethnicities in the U.S. A male-centric comparison shows:

  • For every dollar white, non-Hispanic men earn, other women earn less:

  • Asian women: $0.90

  • White women: $0.79

  • Black women: $0.62

  • Native American women: $0.57

  • Latina women: $0.54

  • The calculation of figures does not account for inflation and assumes that all workers begin full-time, year-round work at the age of 20. (Source: National Women's Law Center, AAUW)

Income Loss Over a Career

• Comparison Against White, Non-Hispanic Men:

  • Women overall: Lose approximately $407,760 over a 40-year career.

  • Asian Women: Lose around $240,280 over the same period, catching up at age 72.

  • White, Non-Hispanic Women: lose $527,440 over their careers, catching up by age 70.

  • Black Women: lose around $941,600, catching up by age 84.

  • Native American Women: face the highest losses at about $1,035,360, catching up by age 90.

  • Latina Women: lose about $1,121,440 over their careers, needing to work until age 93.

Racial & Ethnic Disparities in Poverty

• Overall Poverty Rate (2024): 10.6%

• Disparities by demographic:

  • American Indian & Alaska Native: 21.9%

  • Black, non-Hispanic: 18.4%

  • Hispanic: 15.0%

  • Asian American & Pacific Islander: 10.2%

  • White, non-Hispanic: 7.8%

Children in Poverty: An Intersectional Approach

• Disproportionate Representation:

  • Black, Hispanic, and American Indian and Alaskan Native (AIAN) children are disproportionately represented among those living in poverty.

  • For instance, around 14% of children in the U.S. are Black, making up more than one-quarter of those living below the poverty line.

  • Child poverty varies by age, with younger children more likely to be under the poverty line due to higher associated costs and reduced parental earnings.

Public Assistance Programs

Supplemental Nutrition Assistance Program (SNAP)

• Description: A significant anti-poverty initiative.

• Impact on Poverty (2024):

  • Number of People Kept Out of Poverty by SNAP: 3,585,000

  • Other programs and their impact:

  • Supplemental Security Income: 7,487,000

  • Refundable Child Tax Credit: 2,153,000

  • Housing Subsidies: 2,134,000

  • School Lunch: 1,136,000

  • Unemployment Insurance: 420,000

  • Temporary Assistance for Needy Families: 369,000

Temporary Assistance to Needy Families (TANF)

• Program Overview:

  • Cash assistance program established in 1996, replacing Aid to Families with Dependent Children.

  • Administered as block grants to states, giving them authority over program structures and fund usage.

  • Aimed at promoting self-sufficiency among families with work requirement provisions.

• 2024 Average Payment:

  • For a family of 3: $552/month.

Decline in TANF Reach Over Time

• Statistical Overview:

  • Number of families receiving TANF benefits for every 100 families with children in poverty:

  • 1979: 82 families

  • 1996: 68 families

  • 2020: 21 families

  • Data comparison indicates significant reduction in TANF reach.

Spending on Basic Assistance has Decreased

• TANF Financial Analysis:

  • Total federal and state spending on basic assistance has dropped by 69% since TANF's inception in 1997.

  • Breakdown of 2020 TANF Spending:

  • Basic assistance: 22% ($7.1 billion)

  • Child Care: 17% ($5.2 billion)

  • Work Activities & Supports: 12% ($3.8 billion)

  • Program Management: 10% ($3.2 billion)

• Conclusion: States spend fewer TANF funds on basic assistance that targets families with the lowest incomes, with the majority allocated to non-essential programs.

TANF Funding Misallocation

• Disparities in Aid Distribution: Large shares of TANF funds are directed towards child welfare and pre-K programs, which often fail to target families requiring urgent support.

TANF's Intersectional Lens

• TANF reaches a declining number of jobless single mothers.

• Significant racial disparities exist concerning TANF benefits across different states, where Black children are likelier to live in states with the lowest benefits.

Example: TANF in Michigan - Family Independence Program (FIP)

• Eligibility:

  • Parents with children, individuals with disabilities, refugees, and those over 65.

• Maximum Monthly Benefit:

  • $492 for a family of 3 (remains unchanged since 2008).

• Income Limits:

  • Initial qualification: income below $814/month; cannot exceed $1,184/month.

• Work Participation Requirement: Mandatory activities could total up to 40 hours/week with penalties for rule violations.

• Lifetime Limit: 60-month maximum, as of 2025.

Medicaid & CHIP Overview

• Program Background:

  • Part of the Social Security Act of 1965.

  • Federal matching funds assist states in covering medical care for low-income populations, encompassing 78,095,734 individuals by May 2025.

• Breakdown of Coverage:

  • Medicaid covers approximately 70.8 million individuals, while CHIP serves around 7.2 million.

Upcoming Changes to Medicaid (OBBB Law)

• Significant cuts foreseen, leading to millions becoming uninsured by 2034, with cost-sharing introduced for Medicaid expansion recipients.

Supplemental Security Income (SSI/SSDI)

• Aid Type: Cash assistance for low-income older adults (65+) and disabled individuals hindering their employment capabilities.

• Funding: Funded through federal revenue with uniform eligibility standards.

• Average Payment (2024): $697.89/month.

SNAP Benefits Overview

• Formerly Food Stamp Program:

  • 2024 Prevalence: 12.3% of the U.S. population (approximately 41.7 million).

  • Demographics: 1 in 4 beneficiaries are children.

  • Beneficiary Statistics:

  • 6 million low-income older adults (65+)

  • 4 million adults receiving disability benefits

  • 1 million veterans.

SNAP in Michigan

• Benefit Structure:

  • Average monthly SNAP benefits aim to ensure nutritional needs are met.

  • Benefits vary by household characteristics:

  • Average SNAP monthly benefit across households: $270

  • Working households: $473

  • Households with children: $325

• Upcoming Changes: Cuts anticipated under OBBB will result in 22 million families losing some or all SNAP benefits by 2034.

Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)

• Description: Provides nutritional support, education, and services to low-income pregnant women, infants, and children at risk.

• Participation and Eligibility: WIC served 39% of infants in the U.S. as of FY 2023; significant disparities within participatory rates exist.

Earned Income Tax Credit (EITC)

• Effectiveness: Most effective program aimed at reducing poverty for working households.

• 2023 Statistics: Approximately 23 million families and individuals received EITC, with an average benefit of $2,743 per family with children.

Public Housing Overview

• Administration: Managed by the Department of Housing & Urban Development (HUD) for low-income families and individuals.

• Eligibility: Rent limits capped at 30% of monthly adjusted income, presenting serious issues of segregation and discrimination within housing policies.

Current Housing Crisis Analysis

• Shortage of Affordable Units: 7.3 million additional units are required for the 10.8 million extremely low-income families.

• Rising Costs vs. Affordability: Full-time minimum wage workers cannot afford a two-bedroom apartment in any state/community in the U.S.

• Underfunded Programs: Only 1 in 4 extremely low-income families receives housing assistance.

Homelessness and its Drivers

• Statistics: Over 580,000 individuals are homeless on any given night. Factors contributing to homelessness include rising rent costs and economic disparities.

Disparities in Ownership and Housing Types

• Homeownership disparities and accessibility issues lead to increased vulnerability among communities of color and marginalized families.

• Rental Housing: Each household incurs multiple costs associated with renting, often compounded by socioeconomic factors.

Overall Housing Statistics & Solutions

• Current policies emphasize the need for increased funding and systemic reform to address housing shortages, affordability issues, and homelessness effectively.

Child Welfare and Protection

Child Welfare History Overview

• Significant Events: Mary Ellen Wilson's case in 1874 launched the child protection movement in the U.S.

• Legislation Evolution: The establishment of the Child Abuse Prevention and Treatment Act (CAPTA) in 1974 has been pivotal in developing Child Protective Services (CPS).

National Child Abuse Statistics (2025)

• Reported Cases: 4.4 million referrals to CPS involving 7.8 million children, with 546,159 identified as victims.

• Foster Care Trends: 368,530 children in foster care reflected racial disparities and systemic issues affecting children of color.

Current Challenges in the Child Welfare System

• Systemic inequities often lead to the disproportionate representation of children from marginalized communities within the child welfare system.

Protective Factors in Child Welfare

• Encouraged Development: Families are regarded as better equipped when they can meet basic needs and access essential services such as healthcare and childcare, thus contributing to child and familial stability.

Conclusion: Complexities of Poverty and Inequality

• Understanding the interplay between poverty, inequality, and systemic issues is crucial for social work professionals aiming to mitigate these social injustices through advocacy and policy reform.