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Poverty In North Dakota

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Benson County (typology code: 38005), which is located in North Dakota, is a non-metro region with persistent poverty and persistent child poverty. It is a farming dependent county that mainly constitutes of Native Americans (USDA ERS, 2015). In 2013, 30.2% of the population were below the poverty level. The county was barely mentioned in any news, but the fact that people are living in substandard lives and the causes of their poverty worth our attentions. From ACE 255, I have learned that there are three explanations for poverty: flawed character, restricted opportunity, and big brother. As far as I’m concerned, poverty in Benson County is a result of a combination of these three causes, with more weight on restricted opportunity. In this …show more content…

Compared with the median household income ($53,741) in North Dakota as a whole, households living in Benson earned far below the state level. Similarly, as for persons below poverty level, North Dakota state had 11.9% of population below the poverty threshold, while the rate in Benson was 35.8% although the unemployment rate was only 3.5%. To explain the low household income of people in Benson, the Chapter of the Working Poor provides some useful information. According to Chapter 6, two major strategies to escape from poverty are 1. Small family size, and 2. Secondary workers. However, the average family size of Benson County was 2.9, which is small enough. Also, a majority of families have two to three workers in the labor market. It seems that the two strategies above were already satisfied, but why does Benson County still have such a high poverty level? From my perspectives, low wage should account for the reason of the working poor. Specifically, the workers may have a low level of human capital due to limited education. Another situation is businesses do not have a great demand for labor to contribute to outputs or profits. Thus, as Schiller mentions in the textbook, labor force participation is necessary but not sufficient to escape …show more content…

Take TANF as an example. The state funding to TANF was only 36.3 million dollar in 2009, which was the second lowest amount of funding among states. To encourage recipients to work, the work program expenditure was only 3.2 million dollar. However, with limited funding, the state still successfully provided as much cash assistance and as many work incentives as possible. In 2009, 0.8% of the state population received cash assistance, with $477 of benefits each month for a family of three. Furthermore, in 2009, the TANF work participation rate in North Dakota was 61%, far beyond the national level of

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