Transcript Poverty

SW200 ~ Spring 2010
University of Alabama
Wharton
 1/6 of the world population lives in extreme poverty.
 Governments around the world define poverty
differently.
 One of the “2015 Millennium Goals” is to cut poverty in
half world-wide.
 Related to poverty & the poverty line:
 Juvenile justice, housing, substance abuse, employment,
primary education issues, literacy, childcare programs,
drug access (AIDS drug assistance), college access issues
(student loans)…
MOST SOCIAL WELFARE PROGRAMS DEAL WITH
SYMPTOMS OF POVERTY.
 Absolute or Extreme
 Lack of basic resources: shelter, food, water
 Relative
 A household income below a given proportion of
average national income
 Moderate
 A household income that falls at or below the poverty
line but still provides for most needs; Working poor.
 Economist Molly Orshansky, Social Security
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Administration: 1964, using the 1955 Household Food
Consumption Survey
Based on “market basket approach”
Originally: estimated a basic but nutritional food
budget for a family of 4; multiplied by 3 (surveys
indicated 1/3 of income= food)
Annual changes have been based on inflation of the
Consumer Price Index.
Guidelines are used for means-tested programs: vary
by family size; separate measures for Alaska & Hawaii
due to EOA legislation
 She indicated guidelines represented “how much, on
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an average, is too little,” not “how much is enough.”
Only takes into account cash resources, BEFORE taxes
Accounts for neither family assets nor lack of resources
Does not consider regional differences in cost of living
(national guideline)
Does not consider other issues, such as special
problems or hardships that drain away income (debt,
chronic illness, etc)
Persons in family Poverty guideline
2010 levels will use the 2009 guideline thru at least May 31.
 1
$10,830
(150%= $16,245)
 2
14,570 (150%= $21,855)
 3
18,310
(150%= $27,465)
 4
22,050 (150%= $33,075) (209%= $46,085)
 5
25,790
(150%= $38,685)
 6
29,530
 7
33,270
 8
37,010
For families with more than 8 persons, add $3,740 for each additional person.
According to HHS:
“The national median two-parent two-child budget (in 2004) was equal to 209
% of the corresponding official poverty threshold, while budgets for individual
areas ranged from 162 % (rural Nebraska) to 338 % (Boston, Massachusetts) of
the official threshold.”
ALTERNATIVES ARE NOW BEING CONSIDERED TO THESE GUIDELINES.
 $8/hr ($7.25 is min wage) x 40 hrs/week= $320
 50 weeks/yr= $16,000
 Subtract taxes: approx 24%= $3,840 (leaving $12,160)
 Rent? $500/month= $6000 (leaving $6,160)
 Gas? $150/month= $1800 (leaving $4,360)
 Food? $200/month= $2400 (leaving $1,960)
 Cell phone? Internet? Cable tv? Gifts for family?
 Health care??
 Low-wages
 Unreliable or unavailable work
 Food & gas price increases
 Health care costs wiping out savings
 Family death with no insurance removing
provider
 Unavailability of childcare
 Lack of savings, esp retirement savings
 Resource decline in the area or population
growth
 Living wage
 Savings, esp retirement savings can break trans-
generational poverty
 Technology can increase opportunities
 Agricultural technology can help increase crop yields
and decrease costs
 Wider access to employment resources
 Wider access to training opportunities
 Health care access
 Affordable housing & transportation
 Affordable childcare for working families
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