Chapter Two: Poverty Study Notes

Chapter Two: Poverty

Introduction to Poverty

  • Headline: "More US Kids Go to School Hungry" emphasizes worsening conditions.
  • National survey conducted by Share Our Strength among 638 public school teachers (grades K-8).
  • Findings:
    • More than two-thirds reported students coming to school too hungry to learn.
    • Over 60% said childhood hunger issues worsened in the past year.
    • More than 40% called it a serious problem.
    • Teachers often use personal funds to buy food for their students.

Example Quote from a Teacher:

  • "I've had lots of students come to school, not just one or two who put their heads down and cry because they haven't eaten since lunch yesterday."

Overview of Poverty in the USA

  • Despite being one of the richest nations, many Americans live in or near poverty.
  • Chapter goals:
    • Explain why poverty exists and the reasons for the high US poverty rate.
    • Discuss the consequences of poverty for millions of Americans.
    • Examine poverty in poorer nations and outline efforts to reduce it in both the US and abroad.

Historical Context

  • The War on Poverty began in the 1960s, inspired by books like "The Other America" (Harrington, 1962) and "Myths of Plenty" (Baddikian, 1964).
  • Resulted in federal programs reducing poverty dramatically in a decade.

Current Status

  • Reduction efforts waned since the 1970s; programs cut back, poor no longer prioritized in national agenda.
  • Compared to other wealthy democracies, US offers much less support, resulting in higher poverty rates.

Lessons from Other Nations

  • US poverty can potentially be reduced with effective policies, following examples of other democracies.

Importance of Addressing Poverty

Arguments from Experts

  • Mark R. Rank's View: Poverty is often seen as someone else's problem, but it affects everyone for two primary reasons:
    1. Cost of Poverty:
    • Poor people have worse health, family issues, and higher crime rates, leading to significant national expenditures.
    • Estimated childhood poverty costs the US economy approximately $500 billion annually.
    1. Commonality of Poverty:
    • Approximately 75% of Americans between the ages of 20 and 75 will experience poverty or near poverty at some point in their lives.

John Iceland's Contributions

  • Economic Impact: A high rate of poverty hinders national economic progress due to limited purchasing power.
  • Social Problems: Poverty generates crime and social issues, impacting all socioeconomic levels.

Measuring Poverty

Official Measures

  • To assess poverty, official poverty or poverty line is determined.
  • Originally calculated by economist Mali or Shanke in 1963.
    • Method: Multiplying the cost of a minimal diet by three, based on assumption that families spent one-third of their income on food.
    • Example: In 2010, the poverty line for a non-farm family of four was $22,213.

Limitations of the Official Measure

  • The method is outdated and does not account for changes in family expenses (heat, childcare, transportation, healthcare).
  • Fails to include noncash income (e.g., food stamps).
  • Ignorance of regional cost-of-living variations undermines accuracy.
  • Consequently, the measure is deemed unreliable, as noted by poverty experts.

Adjusting the Poverty Line

  • The poverty line adjusts annually for inflation and family size.
  • Families just above the poverty line often struggle but are not considered poor.

Supplemental Poverty Measure

  • Developed to address limitations of the official measure, considering additional family expenses and geographic differences.
  • In 2010, according to this measure, 16% (about 49.1 million Americans) lived in poverty.

Implications of the Poverty Measure

  • Without social support programs, 25 million more individuals would be classified as poor.
  • The twice poverty threshold indicates living conditions for many families.
    • Estimates suggest over one-third of the US population (more than 100 million Americans) lives in or near poverty.

Key Takeaways

  • Official poverty rate is based on minimal food budget and family size, resulting in underestimation of true poverty levels.
  • In 2010: Official poverty rate was 15.1%, equating to over 46 million Americans.
  • Societal reality indicates that about one-third of the population lives with incomes not exceeding twice the official poverty line.

Review Assignments

  1. Write an essay summarizing the official poverty rate problems.
  2. With classmates, estimate annual costs required for a family of four (two parents, two children) in your area to cover necessities (food, clothing, shelter, etc.).
    • Compare your findings with the official poverty line of $22,213 for 2010 for a family of four.