Market Failure Poverty and Income Inequality

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Market Failure: Poverty and Income Inequality Donna Butler South University Online ECO2071 Principles of Micro-Economics Week 5, Assignment 1 Professor Brandt May 29, 2015 Market Failure: Poverty and Income Inequality Every country in the world needs basic information on the residents that live there. This information is needed for planning, for development and for trying to improve the quality of life for those residents. In order to have good planning, reliable, accurate, detailed information and information that is up-to-date needs to be gathered. This is one of the things that the census does. It gathers information for many different reasons and uses. The information is used to make it possible to plan better services,…show more content…
The official poverty rate in 2010 was 15.1 percent—up from 14.3 percent in 2009. This was the third consecutive annual increase in the poverty rate. Since 2007, the poverty rate has increased by 2.6 percentage points, from 12.5 percent to 15.1 percent. In 2010 the poverty rate jumped up by almost a full present. It was the third consecutive annual increase in the poverty rate and the fourth consecutive annual increase in the number of people that were living in poverty. In 2014 there were over 46 million people that lived in poverty and this was defined by the low level of income for those households where they made about $22,000 a year in a family of four. For children that were under the age of 18, that lived in poverty jumped from 20.7% to 22.0%. This was a total of 16.4 million kids that live in poverty. The total number of citizens that lived in poverty was equal to the population of the fifty largest cities in the US. The absolute number of people living in poverty is at the highest since the government started calculating these numbers in 1975. One of the reasons for this is because of the enormous inequality where income is concerned. Households with the lowest income of $20,000 or less a year, saw this income decline from 3.4% to 3.3%. The top 20% brought home more than 50% of all money income. Since 1990, real income has fallen 12.1% for people that are in the
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