Poverty in the United States
In the United States, poverty has both social and political implications. In 2020, there were 37.2 million people in poverty.[1] Some of the many causes include income inequality,[2] inflation, unemployment, debt traps and poor education.[3] The majority of adults living in poverty are employed and have at least a high school education.[4] Although the US is a relatively wealthy country by international standards,[5] it has a persistently high poverty rate compared to other developed countries due in part to a less generous welfare system.[4]
Efforts to alleviate poverty include New Deal-era legislation during the Great Depression, to the national war on poverty in the 1960s and poverty alleviation efforts during the 2008 Great Recession. The federal government has two departments which measure poverty. Under the Department of Commerce, the Census Bureau has been reporting the Official Poverty Measure (OPM) since the 1960s, while the Department of Health and Human Services defines income levels for which people are eligible for governmental anti-poverty assistance. The OPM includes cash assistance from programs like Supplemental Security Income and Temporary Assistance to Needy Families (Welfare) as part of someone's income when reporting on how many people are in poverty. Since 2011 the Census Bureau has also been reporting a newer Supplemental Poverty Measure (SPM), which includes non-cash anti-poverty government assistance like Supplemental Nutrition Assistance Program (Food stamps) and Medicaid (health care for the poor), and also accounts for regional differences in the cost of living.[6][7] The SPM is considered a more comprehensive estimate of poverty.[8]
For 2021, the percentage of Americans in poverty per the SPM was 7.8%, and per the OPM was 11.6%.[9][10] By the OPM, the poverty threshold for 2021 for a single person was $13,800, and for a family of four was $27,700.[9] In 2020, the World Bank reported that 0.25% of Americans lived below the international definition of extreme poverty, which is living on less than $2.15 per day in 2017 Purchasing Power Parity dollars.[11][12] The SPM increased by 4.6% in 2022 to 12.4%, due to the ending of pandemic stimulus payments and tax credits,[13][14] with around 15.3 million Americans falling into poverty over this time period according to the Center on Budget and Policy Priorities.[14]
The 2020 assessment by the U.S. Census Bureau showed the percentage of Americans living in poverty for 2019 (before the COVID-19 pandemic) had fallen to some of the lowest levels ever recorded due to the record-long period of economic growth.[15] However, between May and October 2020, some eight million people were put into poverty due to the economic effects of the COVID-19 pandemic and the ending of funds from the CARES Act.[16]
Poverty and disability[edit]
Disabled people in the United States are twice as likely to live in poverty due to persistent discrimination, structural and institutional barriers to economic security, and employment disparities.[125] In 2019, 21.6 percent of disabled people were considered poor under the Census’s Supplemental Poverty Measure.[126] People with disabilities experience income disparities in the form of a wage gap that heavily contributes to the increased risk of poverty. In 2020, workers with disabilities (ages 18–64) were paid, on average, 74 cents for every dollar paid to their non-disabled peers.[127] People with disabilities face additional challenges including an added cost of living, a lack of affordable and accessible transportation and housing, and a lack of access to affordable support and services that contribute to their increased risk of experiencing poverty. Income disparities, employment challenges, and additional barriers can cause difficulties in affording rent, as 4 in 10 disabled people in the United States are struggling to afford their rent.[128] Additionally, people with disabilities are three times more likely to not have enough to eat and are almost twice as likely to be unable to pay monthly bills.[129]
There are numerous factors related to poverty in the United States.