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Saturday, September 11, 2010

 

Statistics shows record increase in Americans in poverty

Statistics expected to show record increase in Americans in poverty

 

Hope Yen and Liz Sidoti 
Associated Press
September 11, 2010
 

WASHINGTON -- The number of people in the U.S. who are in poverty is on track for a record increase on President Barack Obama's watch, with the ranks of working-age poor approaching 1960s levels that led to the national war on poverty.

Census figures for 2009 -- the recession-ravaged first year of the Democrat's presidency -- are to be released in the coming week, and demographers expect grim findings.

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Interviews with six demographers who closely track poverty trends found wide consensus that 2009 figures are likely to show a significant rate increase to the range of 14.7 percent to 15 percent.

Should those estimates hold true, some 45 million people in this country, or more than 1 in 7, were poor last year. It would be the highest single-year increase since the government began calculating poverty figures in 1959. The previous high was in 1980 when the rate jumped 1.3 percentage points to 13 percent during the energy crisis.

Among the 18-64 working-age population, the demographers expect a rise beyond 12.4 percent, up from 11.7 percent. That would make it the highest since at least 1965, when another Democratic president, Lyndon B. Johnson, launched the war on poverty that expanded the federal government's role in social welfare programs from education to health care.

Demographers also are confident the report will show:

>>Child poverty increased from 19 percent to more than 20 percent.

>>Blacks and Latinos were disproportionately hit, based on their higher rates of unemployment.

>>Metropolitan areas that posted the largest gains in poverty included Modesto, Calif.; Detroit; Cape Coral-Fort Myers, Fla.; Los Angeles and Las Vegas.

The 2009 forecasts are largely based on historical data and the unemployment rate, which climbed to 10.1 percent last October to post a record one-year gain.

The projections partly rely on a methodology by Rebecca Blank, a former poverty expert who now oversees the census. She estimated last year that poverty would hit about 14.8 percent if unemployment reached 10 percent. "As long as unemployment is higher, poverty will be higher," she said in an interview then.

A formula by Richard Bavier, a former analyst with the White House Office of Management and Budget who has had high rates of accuracy over the last decade, predicts poverty will reach 15 percent.

That would put the rate at the highest level since 1993. The all-time high was 22.4 percent in 1959, the first year the government began tracking povertyIn 2008, the poverty level stood at $22,025 for a family of four, based on an official government calculation that includes only cash income before tax deductions.


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