Module 2: Poverty and Homelessness

How do we define Poverty:

  • Poverty Line: developed during war on poverty

  • Federal Poverty Line in 2025

    • One person= $15,650

    • Two Persons= $21,150

    • Four= $32,150

  • Issues with Poverty Line: only federal line, doesn’t consider geography, urban/rural, cost of living in different areas

  • Poverty Rates have decreased: Virginia’s rate is 9.7%

  • ALICE (Asset-Limited, Income-Constrained, Employed): people who are struggling but aren’t under poverty line (38% of Virginia households, Wise County poverty rate: 19.5%)

Varies by:

  • Age and family structure (higher rates for children and single parents, lower for elderly people)

  • Race (Native Americans, Hispanic, Black are highest, Asians are lowest)


Explanations of Poverty:


Economic Shifts:

  • Job market may change (AI), entry-level jobs are affected

  • Location of Jobs


Homelessness

  • Acute (small) vs. Chronic Homelessness

  • 650,000 at any given moment

  • 20% work part time

Consequences of poverty:

Food; Nutrition and Obesity, Health Issues

Housing: Substandard, Ability to Buy a home/down payment

Education Property of taxes-schooling, field trips/cultural capital

Health and access to care: ER visits, co-pay


Solutions of Poverty:

  • Great Depression→ FDR new deal: Work progress administration

  • LBJ war on poverty in 60s: aid to dependent families with children

  • Backlash in 70s and 80s: Nixon, Reagan: stop depending on programs for money

  • Clinton attack on welfare in 96: personal responsibility and work opportunity act, ADFC→ TANF (Temporary Aid For Needy families)


Individual → Behaviors

Lack of Income → Resources

Lack of Opportunities → Education, Childfree

Structure/ Markets →


Income vs. Wealth

Income - Money you get from jobs (affected by education, opportunities, region,

Wealth - Assets, money, values from things (house, business, stocks, retirement accounts


Major Mechanism:

  1. Segregated public housing: Gov built, located, and administrated projects that separated resident by race

  2. Federal mortgage policy: FHA underwriting and guarantee reduced risk of many White buyers while treating Black people as credit risks


Podcast:

New Deal: PWA (public housing) and FHA (suburbs, mortgage insurer)

GI Bill (Limited stock, redlining)

Affirmative Action:

  • Supreme Court decisions affects college demographics

    • Affirmative action: give minorities opportunities in admissions

    • Supreme Court didn’t like that: gives group unfair advantage

    • Black 15% to 5%, Hispanic: 16% to 11%, Asian rose up, White stay same

    • Duke (14% black), Yale, Princeton → stay same

    • They don’t really consider multiracial people

    • Black admissions declining → pattern

    • UVA: Hispanic 8% to 10%

    • Economic: lower income students are increasing: Duke and UVA

    • Why? Upper income minority admissions have declined, but lower income students regardless of race has increased

    • College take in consideration backgrounds in essays (poor upbringing, racial discrimination)