Years ago, who could have
imagined the appalling growing poverty level in the world's richest
Various reports confirm it, including a new one by the University of
Michigan's National Poverty Center (NPC), titled “Extreme Poverty in
the United States, 1996 to 2011”.
NPC promotes multidisciplinary research on poverty and policy. It mentors
and trains poverty researchers. It analyzes causes and consequences,
and addresses pressing policy questions at both federal and state levels.
How is poverty calculated, it asked? The Census Bureau issues annual
thresholds. They represent minimal income levels required to support
various family sizes.
Its methodology dates from the mid-1960s and hasn't changed. Inflation's
taken into account annually. Families are judged poor based on pretax
income. Non-cash benefits aren't counted, such as Medicaid and food
In 2010, singles under 65 with incomes of $11,344 or less were designated
poor. For those over 65, it was $10,458.
For single parents with one child, it's $15,030. With two children,
it's $17,568. For two adults with no children, it's $14,602. With one
child, it's $17,552. With two children, it's $22,113. With three children,
Adjusted for inflation, current thresholds are slightly higher, but
bear no relation to reality. Individuals and families need double or
more these levels to avoid poverty. Moreover, jerry-rigged inflation
numbers further distort cost of living effects on all households.
The Department of Health and Human Services has its own federal aid
eligibility guidelines. They differ slightly from Census numbers, and
reflect marginally higher Alaska and Hawaii thresholds.
NPC's H. Luke Shaefer and Harvard Kennedy School's Kathryn Edin studied
how Clinton's 1996 welfare reform affected millions of poor Americans.
The Personal Responsibility and Work Opportunity Reconciliation ("welfare
reform") Act (PRWORA) changed eligibility rules. From 1935 until then,
needy households got welfare payments through Aid to Families with Dependent
Children (AFDC). It protected states by sharing caseload costs during
Thereafter, Temporary Assistance for Needy Families (TANF) set five
year time limits. It gave states fixed block grants to administer at
their own discretion. As a result, America's most needy face huge risks
during economic downturns when reduced federal aid exacerbates dire
Under TANF, recipients must work or receive job training, even during
hard times when employment's harder than ever to find. Moreover, single
mothers with young children are grievously impacted. During their most
formative years, children need them as caregivers.
With increasing austerity official federal policy, protracted harder
than ever hard times are assured. Future NPC and other reports will
For example, in 1994/1995, AFDC served 75% of impoverished families
with children. In 2008-2009, it was 28%. The percentage varies by state.
Some help fewer than 10% of impoverished families.
Moreover, when TANF was established, contingency fund assurances were
given. That was then. Austerity demands little or none. The 2009 Recovery
Act included TANF Emergency Fund aid. In September 2010, it wasn't renewed.
During today's dire economic times, budget strapped states force-feed
harsh cuts. Vulnerable residents are harmed most, including families
with children on TANF.
Moreover, its benefits are half or less poverty thresholds. Based on
real inflation adjusted dollars, they've dropped precipitously since
In 2011, NPC estimates 1.46 million US households lived on $2 or less
a day. It reflects a 130% increase from 636,000 in 1996. Around 2.8
million children live in extreme poverty. It represents 16% of all those
Supplemental Nutrition Assistance Program (SNAP) benefits reduce, but
don't eliminate extreme poverty. So-called reform, said NPC, "has been
followed by a dramatic decline in case assistance caseloads."
They dropped from around 12.3 million 1996 monthly recipients to 4.4
million in June 2011. Adult beneficiaries comprise only 1.1 million.
As a result, millions of unemployed parents "have little access to means-tested
income support programs." A new generation of poor resulted. They include
"households with children living on virtually no income."
Children always are harmed most. Since November 2008, those affected
increased dramatically at a time safety net protections are way inadequate
Demographically, married couples comprised 37% of extreme poverty households.
For single females, it's 51%.
About 48% of affected households are headed by White non-Hispanics,
25% by Blacks, and 22% by Hispanics. NPC added:
"Thus, extreme poverty is not limited to households headed by single
mothers or disadvantaged minorities, though the percentage growth in
extreme poverty over our study period was greatest among these groups."
It also said eroding social benefits are "leaving many households with
children behind." They haven't enough resources to get by. TANF and
other forced austerity bear most blame.
Given bipartisan agreement for additional deep cuts, America's most
vulnerable more than ever are on their own out of luck because policy
makers able to prevent it don't give a damn.
Cold hard truths reveal what they and complicit media scoundrels try
hard to suppress. Growing impoverished millions reflect America's dark
Stephen Lendman lives in Chicago and can be reached at email@example.com.
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