Poverty in AmericaPoverty in America

PovertyPoverty• Poverty is the condition of people who lack

adequate income and wealth.• Absolute vs. Relative Poverty • Absolute poverty is the absence of enough

money to secure life’s necessities – enough food and a safe place to live.

• Relative poverty comparing the economic conditions of those at the bottom of society and the rest of society. According to this measure, the definition of poverty can vary. For example it would not be the same in India as the U.S.

More than NumbersMore than Numbers

• HealthHealth: stress, frustration = high blood : stress, frustration = high blood pressure, ulcers, hostility, and crime. pressure, ulcers, hostility, and crime. – Poor are 3x as likely to die as childrenPoor are 3x as likely to die as children– Black & Latino children are 2x as likely to die Black & Latino children are 2x as likely to die

before the age of one. before the age of one. – Long term health of adultsLong term health of adults– Homicide is the #1 cause of death among Homicide is the #1 cause of death among

black males 15-24black males 15-24

• EducationEducation: less informed, less likely to : less informed, less likely to vote, 1:4 dropouts = poorvote, 1:4 dropouts = poor

• OpportunitiesOpportunities

Who is Poor? Who is Poor? • WomenWomen

– 70% of Americans in poverty are women70% of Americans in poverty are women– 55% of these women are Caucasian / 33% are 55% of these women are Caucasian / 33% are

African American African American • WorkersWorkers

– 50% of poor people work FULL time (consider 50% of poor people work FULL time (consider elderly) elderly)

– 1 in 5 jobs earn 25% the poverty line1 in 5 jobs earn 25% the poverty line• ChildrenChildren in Poverty in Poverty

– 20% of America’s children20% of America’s children– 46% of African American children46% of African American children– 40% of Latino children40% of Latino children– 17% of Caucasian children 17% of Caucasian children

• Minorities: http://www.youtube.com/watch?Minorities: http://www.youtube.com/watch?v=y3IW3PhBgjsv=y3IW3PhBgjs

• The The ElderlyElderly– 14% of people over 65 are in poverty (28% of 14% of people over 65 are in poverty (28% of

A.A. / 21% of Latinos)A.A. / 21% of Latinos)• The SouthThe South

Poverty is unevenly Poverty is unevenly distributed in the U.S.distributed in the U.S.

• Where people liveWhere people live, their , their race –ethnicityrace –ethnicity, , their their sexsex, their , their ageage, and their , and their marital statusmarital status all effect their chances of being poor.all effect their chances of being poor.

• The The statesstates with the highest level of poverty with the highest level of poverty tend to be in the tend to be in the South and SouthwestSouth and Southwest

• The The poverty rate in rural areas of the U.S. poverty rate in rural areas of the U.S. is higher than the national average.is higher than the national average.

• Compared to urban Americans, the Compared to urban Americans, the rural rural poor are less skilled and less educatedpoor are less skilled and less educated. Jobs . Jobs pay less than similar jobs in urban areas.pay less than similar jobs in urban areas.

• ““Feminization of PovertyFeminization of Poverty”: divorce, births ”: divorce, births to single women, and the lower wages paid to single women, and the lower wages paid to women.to women.

Figure 10.6 Poverty in the United States by Age and Race-Ethnicity

Source: Statistical Abstract 2002: Tables 668, 671, 673. Note: The poverty line on which this figure is based is $18, 194 for a family of four.

Who is Not Poor?Who is Not Poor?

• Among major industrialized nations, the Among major industrialized nations, the U.S. is the leader in the gap between the U.S. is the leader in the gap between the wealthiest 20% and the poorest 20%.wealthiest 20% and the poorest 20%.

• The The top 5% owns 50% of nations wealthtop 5% owns 50% of nations wealth• 1989198910% = 61% of nation’s wealth10% = 61% of nation’s wealth• 1994 1994 10% = 67% of nation’s wealth10% = 67% of nation’s wealth• 1999199910% = 72% of nation’s wealth10% = 72% of nation’s wealth• Black families make 45% of White Black families make 45% of White

Families’ income on average.Families’ income on average.

Figure 10.2 Inequality of U.S. Income

Bill Gates is the wealthiest person in the world.

His fortune runs between $ 50 billion and $100 billion, depending on the value of stock.

Home in Seattle appraised at $110 million

Gates has given more to poor and minorities than any individual in history

http://www.census.gov/dataviz/visualizations/019/

http://thesocietypages.org/socimages/page/2/

Why are people poor?Why are people poor?

• Human Capital Theory- Lack of education, Human Capital Theory- Lack of education, job training, job skills or language job training, job skills or language proficiency.proficiency.

• Racism, Discrimination and SegregationRacism, Discrimination and Segregation • Family TypeFamily Type – absence of 2 parent families – absence of 2 parent families• Culture-Culture- assumes there are cultures that assumes there are cultures that

value education, self improvement and value education, self improvement and motivation more than others. motivation more than others.

• Lack of Employment Opportunities and Low Lack of Employment Opportunities and Low WagesWages

• Lack of Political PowerLack of Political Power

Figure 10.8 Who Ends Up Poor? Poverty by Education and Race-Ethnicity

Source: Statistical Abstract 2002: Table 675.

Where Does the Public Where Does the Public Stand on the Matter? Stand on the Matter?

• The The majority feel that something needs to majority feel that something needs to be donebe done

• The majority The majority lacks faith in governmentlacks faith in government to to do itdo it

• People tend to People tend to support work programssupport work programs (as (as opposed to direct aid) opposed to direct aid)

• The majority of Americans The majority of Americans support raising support raising the minimum wage.the minimum wage.

• The majority The majority support a tax hike on the support a tax hike on the wealthywealthy

• javascript:window.location.reload(trjavascript:window.location.reload(true)ue)

Figure 10.7 Patterns of Poverty

Source: Statistical Abstract 2002: Table 673. Note: Poverty varies tremendously from one state to another. In the extreme, poverty is almost three times as common in New Mexico (19.3%) than it is in Maryland (7.3%).

WT Journal # 4WT Journal # 4

• After reading After reading Why Poverty Persists Why Poverty Persists in Appalachiain Appalachia, discuss Cynthia , discuss Cynthia Duncan’s belief on why poverty Duncan’s belief on why poverty persists. What actions can be done persists. What actions can be done to help the poor in the Appalachian to help the poor in the Appalachian Region? Explain and provide Region? Explain and provide examples. examples.