The Poverty Level in the USA
The national poverty level according to the US government is for the year 2008 is
1 person $10,400
2 persons (family) $14,000
3 persons (family) $17,600
4 persons (family) $21,200
5 persons (family) $24,800
Now if you take the single person income number you will realize that most retired people living on Social Security are getting about the same income per year as the poverty level. That of course is assuming that most retirees worked at a low paying job for most of their working lives (which is true for about 50% or more people in the USA).
Now let's break the figures down for a young working couple that has a baby or small child. At the federal minimum wage rate of $5.75 (some state rates are much higher thank goodness) per hour and both of them worked full time they could expect to bring home $23,920 before taxes each year. Now with a small child they will have to expect to take time off for illnesses, doctor's appointments and such. Most minimum wage employers don't pay for time off so let's deduct at least one week's worth of pay so that leaves $23,460. Now take the average cut from their pay for taxes(I know they will probably get the taxes back after they file their taxes but they do have to pay it up front first), social security, local income tax. That rate is about 20% for low incomes. That leaves $18,768 which is now very close to the poverty level.
Divide $18,768 up by 52 weeks and you get almost $361 dollars. Now tell me how in the hell is a small family of 3 going to afford shelter, food and clothing for $361 a week? Now keep in mind that I have not included medical insurance that most minimum wage employers don't offer and that will run another $300-$500 a month for a family of 3. Another couple of items that are needed but I did not include were electricity, water and fuel for the transport to get to the jobs.
The only part of the equation that the young couple could change was to live rent free somewhere. That is what has been happening all over the USA with married children moving back home in with their parents.
Now back to my original statement of people claiming to live on extraordinarily low incomes. Some of them have claimed to have become champion coupon clippers but coupon clipping does not help you at the gas station or with the electric bill. My search continues as I am truly trying to find out how those people are really surviving or are they embellishing the facts? I will find out.
Published by Jan S
Published author, freelance writer and webmaster. Available as a ghost writer and blog article writer. Contact theknowledgelady[AT]gmail.com Expertise in the following areas: Technology, entrepreneurship, ho... View profile
- Being Poor in the United States: The Definition of Poverty is Not Accommodating to...While millions of Americans are living below poverty level, many argue the poverty threshold levels are too low resulting in a whole sector of our population who are considered "poor" but not receiving benefits as such.
Problems Behind Crime and PovertyWelfare and other programs if not administered according to ideological, can keep people above the poverty level.- The Effects of Poverty on Childhood DevelopmentPoverty is one of the most devastating problems a child can face, all the more disheartening because it is (in theory) preventable. The challenges a child born in poverty faces may never completely go away.
Food Security and Hunger in the USAThere are two views - official and non-official - on hunger in the USA. The official view denies "hunger" and instead uses the euphemism "food insecurity" instead.- The Problem of Homelessness in the United States of AmericaEstimations of the homeless population in the U.S vary, causes of homelessness are structural and deep-seated, and the solutions to homelessness would require a nationwide concerted effort to make fundamental changes...
- Idea for a New American Labor-Based Currency for Minimum-Wage Workers
- Exemptions from the Minimum Wage
- Third Minimum Wage Increase: Good for the Economy?
- A Review of the Economic Literature on U.S. Minimum Wage Laws
- New Arizona Minimum Wage for 2009 Will Cause Job Losses for Some
- Union Fails to Get Workers Stipulated City Minimum Wage Pay; Is it a Sign of the T...
- The Minimum Wage in America
4 Comments
Post a CommentWhat about childcare? I am a single mum and the cost of childcare in my country is the reason why I haven't got back to work yet. The family of 3 with 2 parents working is bound to have childare costs as well, unless they are lucky enough to have a relative looking after the baby when they are at work.
Very informative article, good analysis also.
As a volunteer with homeless women (and men) I can tell you that many have to band together, pool their resources and create a strong support network. THey share food, child care and transportation. They babysit each others' children and help reduce costs of child care. Whatever it takes, they do. and even then many are hard-pressed to get by.
Living below the poverty line is difficult. It is just about impossible without the aid of several federal and state assistance programs. The problem is once a family is on these assistance programs, it is very difficult to get off of them. I wrote an article about it that you might find interesting.