US poverty rate unchanged; record numbers persist

Claudia Pedroza, 39, and her eight-year-old daughter Karla Osorio at the Jefferson Action Center in Lakewood, Colo. Pedroza moved to the Denver suburbs five years ago with her husband and four children in hopes of a more comfortable suburban life. But Pedroza’s family struggles to make ends meet and she was waiting with her on Monday to apply for help with food, toiletries and seek a new frying pan.

Thursday, September 13, 2012

WASHINGTON (AP) — The nation’s poverty rate remained stuck at a record level last year, while household income dropped and the number of people who don’t have health insurance declined.

A Census Bureau report released Wednesday provided a mixed picture of the economic well-being of U.S. households for 2011 as the nation enters the final phase of a presidential election campaign in which the economy is the No. 1 issue.

The overall poverty rate stood at 15 percent, statistically unchanged from the 15.1 percent rate in the previous year. Experts had expected a rise in the poverty rate for the fourth straight year, but unemployment benefits and modest job gains helped stave that off, the bureau reported. For last year, the official poverty line was an annual income of $23,021 for a family of four.

While unemployment eased slightly from 2010 to 2011, the gap between rich and poor increased. The median, or midpoint, household income was $50,054, 1.5 percent lower than 2010 and a second straight annual decline.

In a blog post, the White House said the latest figures show government policies can help the poor, middle class and uninsured, while more work remains to be done.

“While we have made progress digging our way out of the worst economic crisis since the Great Depression, too many families are still struggling and Congress must act on the policies President Obama has put forward to strengthen the middle class and those trying to get into it,” the White House post said.

At a fundraising event in Jacksonville, Fla., Obama’s GOP rival for the White House, Mitt Romney, said the president “is the candidate that’s pushed the middle class into poverty. We’re the party of those who want a brighter, prosperous future for themselves and for their kids. We’re not the party of the rich. We’re the party of the people who want to get rich.”

By total numbers, roughly 46.2 million people remained below the poverty line last year, unchanged from 2010. That figure was the highest in the more than half a century that records have been kept. The 15 percent poverty rate was about the same as it was in 1993 and was the highest since 1983.

Broken down by state, New Mexico had the highest share of poor people, at 22.2 percent, according to rough calculations by the Census Bureau. It was followed by Louisiana, the District of Columbia, South Carolina, Arkansas and Georgia. On the other end of the scale, New Hampshire had the lowest, at 7.6 percent.

Bruce D. Meyer, an economist at the University of Chicago, said it was disappointing that poverty levels did not improve. He described it as a sign of lingering problems in the labor market, even with recent declines in the unemployment rate. “The drop in the unemployment rate has been due in significant part to workers leaving the labor force, because they are discouraged, back in school, taking care of family or other reasons,” he said.

Some economists were just relieved the poverty level wasn’t higher in the struggling economy.

“This is good news and a surprise,” said Sheldon Danziger, a University of Michigan economist who closely tracks poverty. He pointed to a continuing boost from new unemployment benefits passed in 2009 that gave workers up to 99 weeks of payments after layoffs and didn’t run out for many people until late 2011. Also, job gains in the private sector helped offset cuts in state and local government workers.

“It would indicate the stimulus was even more effective than believed,” he said.

The official poverty level is based on a government calculation that includes only income before tax deductions. It excludes capital gains or accumulated wealth, such as home ownership.

As a result, the official poverty rate takes into account the effects of some stimulus programs passed in 2009, such as unemployment benefits, as well as jobs created or saved by government spending. It does not factor in noncash government aid such as tax credits and food stamps.

More like this story

bertd 8 months, 1 week ago

Over 40 years of ever increasing welfare spending since Johnson started the "War on Poverty", and TRILLIONS of tax dollars spent. Welfare spending sucks up more and more of the federal budget, and what have we taxpayers gotten for our money. Nothing but an entitlement mentality society that actually believes that they have a right to steal the money I worked to earn. Insanity - continuing to do the same thing while expecting a different result. If the Democrats plan was to create a group of people who would always vote for an ever increasing welfare state, they have succeeded.

MO4LIFE 8 months, 1 week ago

Then move to another country. In This country we take care of our poor due to a little something we call morals and christianity!! "Bring us your poor, your tired, your hungry" America is the beacon of hope for the world and refuglicans are trying to turn it into an free for all everyman for himself. "oh you can't eat... then starve because we don't help poor people"

asb 8 months, 1 week ago

The part that's missing here Grace is the failure. We're in an economic slump, with most of the rest of the world, caused mostly by tax relief for folks who don't need it, unfunded wars, and a huge shift of wealth from the greatest middle class in history to the barons of America and Europe. Obama has done well, the world's economy is still under stress but America's is recovering. There is no failure, just an ongoing attempt by the Teaparty-hijacked congress to do everything in its power to discredit Obama and hurt the economy enough to scare people into voting against their own interests. This obstructtion is the main issue for November and will be woven into every reasoned discussion of the nearly treasonous actions of the GOP to defeat Obama. The ultimate baby-out-with-the-bathwater scenerio. This is a thousand year old struggle in western politics and the left always wins in the long run. Reason and the greater good will out.

Paroquet 8 months, 1 week ago

How much you put into the plate, Grace, a true tithe, or a pittance? And who has your congregation helped of late out of charity, gratis, that wasn't among their number under your pastor's fold?

Splinter to log.

RobHunterJohnson 8 months, 1 week ago

Would it not be nice if Jacob Marley would come visit the Republicans? Rob

RobHunterJohnson 8 months, 1 week ago

I am ashamed to, of the extreme right! Rob

TickledPink 8 months, 1 week ago

Grace, you're wrong. Because of Obama, the US has gotten some of its respect back with the rest of the world. Bush made us an extremely unpopular nation. People here might have liked his "good ol' boy" demeanor, but he was an awful statesman. President Obama has restored (some of) the image of this country around the world and as someone who actually goes to other countries, I appreciate that. I get tired of apologizing for the right wing nuts we have here.

I understand we have a very slow economy right now. So does most of the world. We are not an insulated bubble and our economy IS affected by other countries. One of the things that has always set us apart from a lot of the world is that we take care of our people. We're a land of opportunity BECAUSE we help our poor, our hungry, our indigent. We're a beacon of hope but that will all change if Romney is elected. An every man for himself society doesn't work. Didn't you read Lord of the Flies?

JMO 8 months, 1 week ago

The economy is like a bungee jumper. It took a dive and went into a free-fall during Bush, but Obama has that bungee stretching. You have to slow, then stop, the fall before you can bounce back up.

spelchek 8 months, 1 week ago

Do you remember a president named Carter? Do you remember the president after him named Reagan? The conservative got the economy turned around in 3 years (and lasted through Clinton's administration) after the democrat left him a weak economy with high energy prices, interest rates, and inflation. Bungee? Democrats are getting desperate trying to find excuses for the failed policies created by Mr. Obama.

JMO 8 months, 1 week ago

Yes...and I remember Bush, Clinton and Bush. See, I can name presidents in order too. But you can't deny that we were losing jobs under Bush II when Obama took office and it slowed and we are now gaining. Slow, but gaining.

Incidently, I'm neither a democrat nor a republican. I'm beginning to dislike both parties equally. Election years always do that to me.

spelchek 8 months, 1 week ago

FOUR MORE YEARS! FOUR MORE YEARS!

asb 8 months, 1 week ago

I'd count on it . . .

spelchek 8 months, 1 week ago

You basing your assumption off of the Nov. 2010 election results?

JCLifer 8 months, 1 week ago

You mean things really are no better now than they were four years ago???

RobHunterJohnson 8 months, 1 week ago

Things are alot better than they were 4 years ago, how could they not? Tell me what is worse? Rob

JCLifer 8 months, 1 week ago

"The nation’s poverty rate remained stuck at a record level last year, while household income dropped and the number of people who don’t have health insurance declined."

spelchek 8 months, 1 week ago

Don't expect intellectual honesty Lifer.

asb 8 months, 1 week ago

That's what I'd expect from a Teaparty-hijacked congress' refusal to pass the President's jobs bill. What a great bunch of fanatics, willing to keep millions of people out of work just to try and get their tax dodger in chief elected to funnel more and more of the nation's wealth to fewer and fewer of the top barons.

spelchek 8 months, 1 week ago

Yeah!!!! The tea party hijacked Obama's promise to close Guantanamo too!!!! They also hijacked the OWS crowds who's manufactured protest turned out to be.....manufactured (where are they now? oh yeah, in the park defecating on cop cars). Let's also not forget how they hijacked the citizens of WI making them vote for fiscal sanity and keep the governor that gave it to them. They also hijacked the coward democrats that ran to other states to keep the bill from passing, remember? The tea party also hijacked California and Illinois' economies and drove them off the cliff. We all know those two states are saturated with tea partiers.

asb 8 months, 1 week ago

Some of that makes sense, but it's wrong. Most of what you just wrote doesn't. OWS wasn't nearly as manufactured as the Beck-built first few teaparty protests, complete with AK's and swastikas. Are their bad apples as bad as the cop car poopers? You decide. Guantanamo . . . I hope it gets closed some day, maybe when the gits being held there die of old age. If Romoney gets elected, I'm sure he'll fail on at least one or two of his platitudes. But back to the Teaparty-hijacked congress of my post, your turn to try again to make sense.

RobHunterJohnson 8 months, 1 week ago

Obama and Bush have had the same problem with Guantanamo, you cannot turn them loose, they return to the battlefield, If you convict them the majority would get DEATH, and we see how the MUSLIM world reacts, so they will probably sit there until they die of old age. That is not fair to the people they commited their crimes against. The next President, and the next will have this until they are gone. Rob

spelchek 8 months, 1 week ago

Or worse, acquitted then allowed to use our system (ACLU) to sue us and profit.

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