Understanding Poverty

What is Poverty?

Chapter 7 Overview

  • Definition of Poverty:
    • A lack of resources such as money or material possessions needed for survival.
    • Commonly understood as a lack of income or wealth.
  • Poverty Rates:
    • 2018 poverty rate was 12%, showing a decline since 2010 (22%).
    • Decline attributed to economic shifts and recession, notably the 2008 housing bubble.
  • Census Bureau Statistics:
    • Conducts annual estimates of poverty.
    • Utilizes statistical methods based on social and economic indicators rather than counting every individual in poverty.
    • Points of Service (POS) only account for those actively seeking help.
    • Reports conservative estimates highlighting that poverty rates have been below 11% for over five decades (1969-2018).

Measuring Poverty

  • Complex Nature of Poverty:
    • Measuring poverty involves moral, ethical, demographic, and epistemological considerations.
  • Poverty Measure:
    • Poverty rate in U-8 recorded at 123%, indicating various measurement methodologies.
    • Six common measures of poverty include:
    • Absolute Poverty
    • Relative Poverty
    • Official Measures
    • Subjective Measures
    • Hardship Indicators
    • Social Exclusion

Absolute Poverty

  • Definition: Inability to sustain oneself, also known as extreme poverty.
  • Absolute Poverty Threshold:
    • Defined as $1.90 a day, representing the minimum needed for survival including food, water, sanitation, and shelter.
    • UN's calculation for absolute poverty in 2020 is $653.99 annually or less.
    • Scholars advocate for a poverty line reflecting $17.40 daily due to varying living costs across countries.
  • Global Context:
    • In South Sudan, over 80% live below the poverty line.
    • Globally, poverty decreased from 36% (1990) to 10% (2018).
    • Regions like Sub-Saharan Africa and South Asia reported significant poverty reductions.
    • The Middle East and North Africa, however, are seeing increases in absolute poverty.
    • UNESCO's initiatives on education aim to reduce poverty, with 91% of nations adopting these measures by 2020.

Relative Poverty

  • Definition: Compares individuals based on resource distribution, defining poverty relative to average income thresholds of an economy.
  • Example:
    • In 2020, average income in New York City was $66,760.
  • Poverty Standards:
    • Official poverty threshold is earning less than $13,300 annually.
    • Most agencies use a measure relative to the median income, where earning 50% of that, or approximately $33,350, is considered impoverished.
  • Needs-Based Perspective:
    • Recognizes that poverty rates are dynamic and vary based on individual location and living costs.
    • Example: In San Francisco, the living wage is approximately $31.88/hour, far exceeding the minimum wage of $13/hour.

Official Poverty

  • Definition: Known as Federal poverty (USCB).
  • Types of Measures:
    • Thresholds: Computed by the Census Bureau.
    • Guidelines: Utilized by Health & Human Services to determine eligibility for government programs.
    • 2021 threshold: $12,880 for individuals; $26,500 for a family of four.

Subjective Measures

  • Definition: These measures depend upon local circumstances.
  • Considerations:
    • Include costs of local housing, employer-subsidized healthcare, childcare, and transportation.

Hardship Indicators

  • Definition: A comprehensive measure that assesses life circumstances used in eligibility determinations, focusing on economic well-being rather than just financial status.

Social Exclusion

  • Definition: Describes social determinants that prevent full societal participation. It is often a goal to enact social change to mitigate social exclusion's impact on poverty.

Extent of Poverty

  • Statistics:
    • Approximately 34 million individuals in the U.S. lived in poverty in 2018 (USCB).
    • Nearly 40% of Americans will experience poverty at least once over a decade (Zweig).
    • Family poverty rate was reported at 9.7%, households with children showed about 16% for those under 18.

Gender and Poverty

  • Trends:
    • Women are more likely to experience poverty due to gender inequality (Grusky and Kanbur).
    • Female-headed households see higher poverty likelihood.
    • Poverty rates: Married couples at 5%; single males without spouses at 13% (19-20% with children); single females at 17%.

Child Poverty

  • Statistics:
    • 11.9 million children (1 in 6) lived in poverty in 2018, predominantly in homes led by single mothers (termed the feminization of poverty).

Regional Poverty

  • Influence of Neighborhoods:
    • Poverty can arise due to housing discrimination, employment opportunities, and social exclusion levels.

Spatial Mismatch Theory

  • Definition: Explains the disconnection of inner-city residents from jobs and resources that have migrated to suburbs; lack of job opportunities in urban areas (Kirchenman and Neckerman 1991).

Race/Ethnicity and Poverty

  • Context:
    • Stable poverty rates for White people (10-15%) (1987-2018); Asian/White poverty rates were lower compared to Hispanic and African American rates.
    • Statistics: Non-Hispanic Whites (8.1%); Asians (10.8%); African Americans (22.0%); Hispanics (19.1%).
    • About three-quarters of poor children in America are children of color; those from color backgrounds are 2.5 times more likely to be in poverty versus White children.

Explanations for Poverty

Theoretical Perspectives

  • Individual Determinants:
    • Functionalists:
    • View poverty as a result of individual choices (Davis & Moore 1945).
  • Conflict Theorists:
    • Perceive poverty as a byproduct of structural power and class struggles (Marx 1977).
  • Symbolic Interactionism:
    • Examines poverty through individual perceptions and experiences, focusing on the meanings ascribed to poverty.

Culture of Poverty

  • Definition: A prevailing theory suggesting that certain behaviors and characteristics are widespread among those in poverty, such as perceived slothfulness or lack of appreciation for education (Lewis 1957).
    • Critique: Does not adequately explain the cyclical nature of poverty or how individuals transition in and out of poverty.
  • Underclass Theory: Addresses the persistence of poverty over generations, focusing on dimensions like impoverishment and the violation of middle-class values (Wilson).

Cycles of Poverty

  • Definition: Describes how poverty is often experienced as a transient condition, with many people experiencing spells of poverty short-term rather than as a permanent state (DeNavas, Proctor, and Smith).
    • Recent data (2001-2003) demonstrated that nearly 33% of individuals in the U.S. experienced at least one spell of poverty lasting two months or more.

Micro-Analysis of Being Poor

  • Minimum Wage Employment: Observations by Barbara Ehrenreich in her book "Nickel and Dimed" highlighted the challenges of working in low-wage jobs in poverty.
  • Key Studies:
    • Desmond (2016) studied the eviction experiences of families, while Edin and Kefalas (2011) discussed perceptions of marriage and motherhood among impoverished teenage girls.

The Working Poor

  • Clarification: The working poor are those who are employed yet remain below the poverty line due to low wages and economic conditions.
  • Statistics: Approximately one million individuals aged 18 and older worked 27 weeks or more and lived in poverty (Shambaugh, Bauer, Brietuieres).
  • Post-Recession Transitions: Between 2011-2017, only 5% of low-wage workers secured better jobs; 70% remained in the same low-wage employment, reflecting broader economic patterns (Autor and Dorn 2013).

Consequences of Poverty

  • Social Isolation: Low engagement in community and political activities among the poor, significantly impacting social mobility and opportunities.
  • Social Capital: Defined as the value derived from social networks. The poor often lack this capital, leading to further isolation and diminished opportunities for upward mobility (Bourdieu 1985).

Homelessness

  • Definition: As defined by the Stewart B. McKinney Act (1994), a homeless person lacks fixed, regular, and adequate nighttime residence.
  • Statistics: Nationally, approximately 500,000 individuals are homeless, with around 2/3 indicating recent housing loss due to economic hardship.
  • Misconception: Many believe the homeless are predominantly single individuals; however, 20% of the homeless population consists of families, with 60% in shelters and 40% in emergency shelters.

Social Welfare Programs

  • Educational Impacts: Children in poverty show high probabilities of failure in school and nonmarital childbearing, with specific challenges affecting women's mental health (Holohan 1997).
  • Government Responses: Various programs, notably Roosevelt's New Deal, have aimed to address poverty through structural reforms including the Social Security Act, Medicare, and Head Start initiatives (Duncan et al. 1995).

Summary

  • The concept of poverty is multifaceted and politically charged, influenced by how it is measured, perceived, and addressed through various governmental and social agencies. Understanding poverty through diverse theoretical lenses enables a more comprehensive approach to alleviating its impact.