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Poverty Threshold Is The Maximum Value

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Poverty threshold is the maximum value that classifies an individual as not having sufficient money or income to support the basic needs and living in a poor environment that potentially affects his or her physical health. In other words, people who are constantly worrying and struggling the incapacity and limited resources to provide themselves food, clothing, housing, health care, and transportation are considered in poverty.
U.S. Government Official Measure: Following the Office of Management and Budget 's (OMB) Statistical Policy Directive 14, the Census Bureau now determines who is in poverty by issuing a poverty threshold. To classify whether an individual or a family is in poverty, the Census Bureau compares a person’s family total pre-tax cash income from all sources such as earning, interest, and cash welfare with the Social Security Administration threshold that was set at three times the cost of a minimum food diet in 1963. An individual or a family would be considered in poverty if the total pre-tax cash income is below the assigned threshold from an array of 48 thresholds. The poverty threshold is updated annually by using the Consumer Price Index (CPI) for price inflation. The thresholds vary by family size and the age of members, but do not vary geographically (National Research Council).
The Census Bureau uses the quantitative self-report data to estimate an individual or a family total income and calculate the poverty rate. The Census Bureau conducts two

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