Read

Search form

Half of America in Poverty — and It's Creeping Upward

Half of America in Poverty — and It's Creeping Upward
Wed, 5/29/2013 - by Paul Buchheit
This article originally appeared on AlterNet

The Census Bureau has reported that 15% of Americans live in poverty. A shocking figure. But it's actually much worse. Inequality is spreading like a shadowy disease through our country, infecting more and more households, and leaving a shrinking number of financially secure families to maintain the charade of prosperity.

1.Almost Half of Americans Had NO Assets in 2009.

Analysis of Economic Policy Institute data shows that Mitt Romney's famous 47 percent, the alleged 'takers,' have taken nothing. Their debt exceeded their assets in 2009.

2.It's Even Worse Three Years Later.

Since the recession, the disparities have continued to grow. An OECD report states that "inequality has increased by more over the past three years to the end of 2010 than in the previous twelve," with the U.S. experiencing one of the widest gaps among OECD countries. The 30-year decline in wages has worsened since the recession, as low-wage jobs have replacedformerly secure middle-income positions.

3.Based on Wage Figures, Half of Americans Are in or Near Poverty.

The IRS reports that the highest wage in the bottom half of earners is about $34,000. To be eligible for food assistance, a family can earn up to 130% of the federal poverty line, or about $30,000 for a family of four.

Even the Census Bureau recognizes that its own figures under-represent the number of people in poverty. Its Supplemental Poverty Measure increases, by 50%, the number of Americans who earn between one-half and two times the poverty threshold.

4.Based on Household Expense Totals, Poverty is Creeping into the Top Half of America.

A family in the top half, making $60,000 per year, will have their income reduced by a total tax bill of about $15,000 ($3,000 for federal income tax and $12,000 for payroll, state and local taxes. The Bureau of Labor Statistics and the Census Bureau agree that food, housing, and transportation expenses will deduct another $30,000, and that total household expenditures will be about $50,000. That leaves nothing.

Nothing, that is, except debt. The median debt level rose to $75,600 in 2009, while the median family net worth, according to the Federal Reserve, dropped from $126,400 in 2007 to $77,300 in 2010.

5.Putting it in Perspective

Inequality is at its ugliest for the hungriest people. While food support was being targeted for cuts, just 20 rich Americansmade as much from their 2012 investments as the entire 2012 SNAP (food assistance) budget, which serves 47 million people.

And as Congress continues to cut life-sustaining programs, its members should note that their 400 friends on the Forbes list made more from their stock market gains last year than the total amount of the foodhousing and education budgets combined.

Arguments about poverty won't end. Neither should our efforts to uncover the awful truth.

Originally published by AlterNet

 

Add new comment

Sign Up

Article Tabs

Nicaraguan indigenous struggles, Miskitu people, Mayagna people, Bosawas Biosphere Reserve, North Caribbean Autonomous Region, colonos, United Nations Declaration on the Rights of Indigenous People

Settlers are attacking indigenous communities with automatic firearms, killing, plundering and forcing residents to flee their ancestral lands, while foreign companies have entered the territory illegally and are burning the region at a rapid rate.

rising inequality, wealth inequality, wealth gap, rising incomes, growing unemployment, Great Recession, housing crisis

Recent research published about the Great Recession adds to the already clear evidence that rising inequality translates into nearly all of today's winnings going to the wealthy.

Jeremy Corbyn, MPs

The anti-Corbyn forces within Labour might very well have achieved the complete opposite of what they aimed to achieve.

shady financial practices, financial crimes, Dodd-Frank Act, Roosevelt Institute, too big to fail, Glass-Steagall Act, Gerald Epstein, Juan Antonio Montecino

The average U.S. household loses over $100,000 to destructive activities of bankers and financiers.

Bernie Sanders supporters traveled to Philadelphia from every corner of the country this week to show their enduring support for his candidacy.

Democratic National Convention, DNC, DNC protests, Hillary Clinton, Bernie Sanders, Bernie supporters, Food & Water Watch, March for a Clean Energy Future

More than 10,000 people calling for a “clean energy revolution” filled the streets here Sunday.

Posted 4 days 21 hours ago

Bernie Sanders supporters traveled to Philadelphia from every corner of the country this week to show their enduring support for his candidacy.

Posted 2 days 17 hours ago
All Lives Matter protesters come together for a group hug with join Black Lives Matter activists in Dallas at Park Ln & Fair Oaks Ave. July 10th.

In recent weeks, the Southern Poverty Law Center has received a number of requests to name Black Lives Matter a hate group. In our view, these critics fundamentally misunderstand the nature of hate groups and the BLM movement.

Posted 4 days 21 hours ago
Democratic National Convention, Bernie Sanders, Jill Stein, Bernie protesters, progressives, Equality Coalition for Bernie Sanders, Migrants Rights March, Juntos, immigrant rights, Democracy Spring

We’re supposed to have a government of and by the people, but the government we have is only interested in protecting the rights of big corporations and billionaires.

Posted 3 days 8 hours ago

This week, as the DNC rages on, we're talking state surveillance – digging deep into the past and present with surveillance expert, Chip Gibbons from Defending Dissent

Posted 2 days 17 hours ago
marijuana legalization, cannabis legalization, legalized weed, Adult Use of Marijuana Act, AUMA, Monsanto, GMOs, seed patents, George Soros, corporate marijuana takeover

With the cannabis industry predicted to generate over $13 billion by 2020, there should be little doubt that companies like Monsanto are simply waiting for Uncle Sam to remove herb from Schedule I.

Jeremy Corbyn, MPs

The anti-Corbyn forces within Labour might very well have achieved the complete opposite of what they aimed to achieve.

employees with criminal records, criminal justice system, Dave’s Killer Bread, Hot Chicken Takeover, POP! Gourmet Foods, Drive Change, Greyston Bakery, banning the box

Companies like Hot Chicken Takeover, POP! Gourmet Foods, and Greyston Bakery are breaking down barriers.

All Lives Matter protesters come together for a group hug with join Black Lives Matter activists in Dallas at Park Ln & Fair Oaks Ave. July 10th.

In recent weeks, the Southern Poverty Law Center has received a number of requests to name Black Lives Matter a hate group. In our view, these critics fundamentally misunderstand the nature of hate groups and the BLM movement.

This week, as the DNC rages on, we're talking state surveillance – digging deep into the past and present with surveillance expert, Chip Gibbons from Defending Dissent