Recalibrating the Poverty Linetags: poverty
John E. Schwarz is professor emeritus of government and public policy at the University of Arizona, senior distinguished fellow at Demos and the author of Common Credo: The Path Back to American Success.
This year marks the 50th anniversary of the landmark paper that helped delineate the federal poverty line. A huge leap forward in its day, the poverty line established credible criteria for what constituted an acceptable standard of living. It continues to be the official measure used, for example, to determine who will get what subsidies under assistance programs such as food stamps, housing assistance and Medicaid.
However, like anything half a century old, it could use a little updating. By its standards, only 15% of Americans fall below the poverty benchmark. Yet more than 35% of us hold jobs paying less than a living wage or are unemployed and trying to find a job, and another 1 in 10 receives just above a living wage. The out-of-whack poverty line carries huge repercussions for the poor, near poor and, indeed, the entire economy.
Here's the background. Mollie Orshansky, an economist and statistician with the Social Security Administration, devised the poverty line in the 1960s. She used the average family budget and the cost of food. Because the average family spent one-third of its budget on food in 1955, Orshansky set the poverty threshold at three times the minimum cost to purchase an adequate food diet. Her formula took a basic minimum (the food budget) and related it to the overall prevailing standard of living (its proportion in the total budget of the average family). She described it as an acceptable minimum social standard according to the custom of the day. It was not an absolute measure of poverty....
comments powered by Disqus
- Earth Is In The Early Days Of A New Mass-Extinction Event, Researchers Warn
- Without World War I, what would literature look like today?
- The Secret to Early Jewish Success: Literacy
- Egypt’s Nasser is blamed for current problems by the regime
- ‘Google must not be left to censor history’ – Wikipedia founder
- Yale's Jay Winter sums up what we should remember about WW I
- Plagiarism scandals galore … but no consequences?
- Stephen Cohen was once considered a top Russia historian. Now he publishes odd defenses of Vladimir Putin, says critic
- Historian who calls bull&%$@ on July 4th parade causes controversy
- This is what motivated history students in high school and middle school can do!