Monday 8 April 2013

Poverty in The US

0. Introduction

National pauperism data are calculated using the semiofficial Census definition of distress, under this definition poverty is intractable by comparing pretax cash income with the poverty threshold, which adjusts for family size and composition. The federal official government classified a family of four as unretentive if its cash income was less than $18,100; for a family of three, the poverty threshold was $15,020; for a married couple, $11,940; and for an individual, $8,860. . The number of poor families in America change magnitude by more than 6% in 2001, with 6.8 million families - star by of every ten - living below the poverty line in 2001. In 2002, according to the official measure, 12.1 part of the total U.S. population lived in poverty .

There are many an(prenominal) problems connected to the measure of poverty that the US Census chest uses. The definition was first calculated in the mid sixties as three times the minimum basket of pabulum a family would need. Since then it has only been adjusted to inflation, and it has not interpreted into account that the spending pattern of Ameri digest families have changed quite a lot since the 1960s.

This means that these poverty data can easily be compared and used for measuring the progress against poverty.

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At the same time, it is at times difficult to find out and to decide what kind of benefits are taken into account when the poverty line is drawn. Benefits such as Earned Income Tax identification (EITC) are excluded and costs such as child keeping are excluded. Because of this, the poverty rate could be as gamey as 20% or as low as 10%, all depending on what is included.

1. Evolution of the poverty in the USA

As we can see in Table 1 of the auxiliary 1,

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