Monday, March 8, 2010

Poverty in America Part 3: How Poor are American Poor?

In Part 2 of this series, we tried to define what Poverty in America really is.

In this third part of the series we ask "How Poor are American Poor?"

Poverty statistics only look at family unit income: they neither look at the assets held by family units nor do they factor final living status when income-tested benefits are added to family unit income: so how does that mythical family of 4 which has $22.050 in income really live?

-43% of "poor" households own their own homes
-80% of "poor" households have air conditioning
-only 6% of "poor" households are overcrowded
-75% of "poor" households own a car, 31% own 2 or more cars
-97% of "poor" households have a color television, over 50% own 2 or more
-62% of "poor" households have a VCR or DVD player, 62% have cable or satellite TV
-89% of "poor" households own microwave ovens

Not only does the typical American poor household have a wide array of assets, but their defined poverty ($22,050 for a family of 4) makes them eligible for numerous means-tested programs. Among these programs are;

Department of Health and Human Services:
Community Services Block Grant
Head Start
Low-Income Home Energy Assistance Program (LIHEAP)
Community Food and Nutrition Program
PARTS of Medicaid (31 percent of eligibles in Fiscal Year 2004)
Hill-Burton Uncompensated Services Program
AIDS Drug Assistance Program
Children’s Health Insurance Program
Medicare – Prescription Drug Coverage (subsidized portion only)
Community Health Centers
Migrant Health Centers
Family Planning Services
Health Professions Student Loans — Loans for Disadvantaged Students
Health Careers Opportunity Program
Scholarships for Health Professions Students from Disadvantaged Backgrounds
Job Opportunities for Low-Income Individuals
Assets for Independence Demonstration Program

Department of Agriculture:
Supplemental Nutrition Assistance Program (SNAP) (formerly Food Stamp Program)
Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
National School Lunch Program (for free and reduced-price meals only)
School Breakfast Program (for free and reduced-price meals only)
Child and Adult Care Food Program (for free and reduced-price meals only)
Expanded Food and Nutrition Education Program

Department of Energy:
Weatherization Assistance for Low-Income Persons

Department of Labor:
Job Corps
National Farmworker Jobs Program
Senior Community Service Employment Program
Workforce Investment Act Youth Activities

Department of the Treasury:
Low-Income Taxpayer Clinics
Corporation for National and Community Service:
Foster Grandparent Program
Senior Companion Program

Legal Services Corporation:
Legal Services for the Poor

The source for these programs: Health and Human Services.

Since the mid-1960's we have piled program upon program, yet over the years, the "poverty rate" in America has continued to range between 11.3 to 15.1%.

We are not solving the problem, if anything we are growing the problem.

How do you stop poverty? We will discuss this in Part 4.

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