US poverty rate highest since 1993

THE US poverty rate rose in 2010 to 15.1 per cent, the highest rate since 1993, the Census Bureau has reported in another sign of a sputtering economy following a deep recession. The report showed a sharp increase in poverty from 14.3 per cent in 2009, and a fourth consecutive rise in the number of people below the poverty threshold, to 46.2 million.

The number of people in poverty was the highest since data collection began in 1959, although the rate was 7.3 percentage points lower than in 1959.

The US definition of poverty is an annual income of $22,314 for a family of four, and $11,139 for a single person in 2010.

The survey showed struggles for the rest of Americans, with median household income falling 2.3 per cent to $49,445.

The poverty rate for blacks and Hispanics was much higher than for the overall population at 27.4 per cent and 26.6 per cent, respectively. Among regions, the South had the highest poverty rate at 16.9 per cent and the highest percentage without health insurance, 19.1 per cent.

The report, showing the first full year since the recession officially ended in June 2009, supports the notion that Americans have been losing ground economically. It showed real median incomes fell 6.4 per cent from pre-recession levels in 2007 and were 7.1 per cent below the peak in 1999.

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Posted by John J. Ray (M.A.; Ph.D.).