The Median Household Income

Income Inequality in America is a problem that’s been going on for decades, and many feel that it hardly exists, the many people that feel that way are highly uneducated, and seem to not really care about this tremendous problem that in one’s eyes really has no end in the near future, in fact it has been gradually rising and one feels that it’s just not fair. Unfortunately, there’s not much that can be done, only of course if the poor class of people decide to actually educate themselves and get a higher education. One says poor class, simply because that’s how they’re classified. There are five types of levels that Americans are classified as, and they are: 1. Upper Class, 2. Upper Middle Class, 3. Middle Class, 4. Working Class, 5. Poor.

The U.S. is among the richest countries in the world today, yet millions of people in America still live below the poverty level. The number of Americans living in poverty is increasing day by day as well as the number of children. Poverty in America has become a great threat to children’s wellbeing as they are affected emotionally, socially, and even in their school performance (Wood 720). Poverty in America is mainly caused by lack of jobs. Many people who live in poverty in the United States is due to lack of jobs and getting jobs with minimum wage. Another cause of poverty is due to the rise in the cost of living. Poverty exists in America despite the fact that is among the richest nations in the world.

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taxpayers grew by 18.9 percent. Simultaneously, the average income of the top 1 percent grew over 10 times as much—by 200.5 percent. Those in the top 1 percent of households doubled their share of pretax income from 1979 to 2007; the bottom 80 percent saw their share fall. Worse, as the average real income for the top 1% more than tripled, the bottom 80% saw only feeble income growth, on the order of just 205 over nearly 30 years. After incomes at all levels declined as a result of the Great Recession, lopsided income growth has reemerged at higher rates since the recovery began in 2009. University of California, Berkeley economist, Emmanuel Saez estimated that from the first year of the recovery in 2009 to 2012, the top one percent captured an alarming 95% of all income growth; this suggests that the bottom 99% of earners -- which encompasses all of the middle class, the group harmed most by the recession -- hardly saw any recovery during the first three recovery years. In 2012, the top 1% of United States earners collected a record 19.3% share of total household income, surpassing the previous mark of 18.7% in 1927. The level of income inequality in the United States has reached new record levels domestically; relative to other nation’s income inequality level, the United States still rates poorly. According the World Bank’s GINI index, which measures how much an economy deviates from perfectly equal

“Poverty is about not having enough money to meet basic needs including food, clothing and shelter” (“What is Poverty,” 2016). In the United States, there are 45 million Americans are living in poverty (“45 Million Americans,” 2014). In order to determine if one is living in poverty, the United States Census Bureau has established a poverty line that they then measure, according to the individual’s income and their family size (“Poverty Thresholds,” 2016; “Poorest Cities in America,” 2016). Since the recession in 2008, many states have seen a rise of families living in poverty. Poverty is a vicious cycle and has devastating effects on young children.

The number of children who are living in poverty have decreased for the first time in almost ten years. The Census Bureau reported a 0.5 percent decrease of Americans living in poverty from 2012 to 2013. Poverty is among the country’s contemporary social problems in the Twenty-First Century. According to the Census Bureau, 45.3 million people were categorized as living in poverty in 2013. To address contemporary social problems like poverty, one must take an in depth look at the reasons why there are so many people dealing with poverty and the challenges that arise from trying to escape it.

However, this system of measuring poverty is flawed because if a family makes a dollar more above the set limit, they do not qualify for financial help from the government (NCCP, 2008).The poverty threshold is an inadequate measure of whether people are considered poor or not. Current poverty measures are flawed because it assumes how much a family spends and does not accurately include family resources such as Earned Income Tax Credit (NCCP, 2008). The way that the government measures poverty is based on outdated information that was set in the 60s. Because it has not been sufficient to keep up with the standard of living, those who are living in “high cost cities like New York and those who live in rural areas of the country” (NCCP, 2008) are barely getting by.

The United States defines poverty for a family of four as being less than $16,036 per year, or $4,009 per person (Leone 12). People find themselves under this line for an innumerable amount of reasons. Some of these causes are under one's control and others are greater factors beyond an individual's power. Each family or individual person has unique and separate reasons for living in a state poverty. There is no way to try and define them all. Focusing in, three main topics arise that encompass the most predominant reasons for a person to fall into poverty. Education, family life and influence, along with the business cycle may work individually or together to cause poverty. These three leading

The highest earning fifth of U.S. families earned 59.1% of all income, while the richest earned 88.9% of all wealth. A big gap between the rich and poor is often associated with low social mobility, which contradicts the American ideal of equal opportunity. Levels of income inequality are higher than they have been in almost a century, the top one percent has a share of the national income of over 20 percent (Wilhelm). There are a variety of factors that influence income inequality, a few of which will be discussed in this paper. Rising income inequality is caused by differences in life expectancy, rapidly increases in the incomes of the top 5 percent, social trends, and shifts in the global economy.

In 1998, more than 13 million children (19 percent of all children) under age eighteen lived in families with incomes below the official poverty threshold. Although children age eighteen and under represent 26 percent of the United States population, they comprise nearly 40 percent of the poverty population. Despite a steady decrease from 1993 (23%) to 1999 (17%) in the rate of children in poverty, the United States still ranks highest in childhood poverty among all industrialized nations.

Poverty is an issue that is faced by multitudes of people around the world. Poverty itself is defined as, “the state of being poor” (Merriam Webster). According to Sara S. McLanahan, of Princeton University, “In the United States, poverty is defined as not having enough income to pay for basic needs, such as food, clothing and shelter. Poverty is a family attribute. In other words, if a family is classified as poor, all the members of that family are also poor” (McLanahan, n.d.). The U.S. Census Bureau, in 2013 shows, “there were 45.3 million people in poverty” just in the United States (U.S Census Bureau, 2013). From those living in poverty, in the same year, “the ratio of the female poverty rate to the male poverty rate was 1.2---women were 20 percent more likely to be poor than men” (Mykyta, 2013, p. 2). Also, “of all people categorized as in poverty in 2011, approximately 56 percent were women” (Mykyta, 2013, p. 2). Sakiko Fukuda-Parr, director of the Human Development Report, portrays a simple truth, “women are poorer than men” (Fukuda-Parr, 1999, p. 99).

Poverty has been on a incline since the economic downturn in 2007. Poverty is defined as “the state of being inferior in quality or insufficient in amount”, but a more modern definition used today is “in state of being extremely poor”. According to “Poverty in the United States” a report done by Congressional Digest, the poverty line in 2012 was 15.0 percent, which represents 46.5 million people living at or below the poverty line, and was 2.7 points higher in this year than in 2007. The article also stated that in 2012, the family poverty rate and the number of families in poverty was 11.8 percent and 9.5 million and the median income for households was $51,017, which means many of these households have students who become eligible for free lunches. In Lindsey Layton’s article “Most Public

Children in poverty is a typical social issue occurring in society today. “More than 16 million children in the United States – 22% of all children – live in families with incomes below the federal poverty level” (“National Center For Children In Poverty,” n.d.). The federal poverty level measures the amount of income a family takes in per year. It varies depending on the number of people in a family. For a nuclear family (two parents and two children) the federal poverty level is around twenty-four thousand dollars in a year (“Health Care.gov,” n.d.). The average American makes around forty-six thousand dollars a year. The parents of the children in poverty make at least twenty-two thousand dollars below the average. Their families are extremely poor. Also, not just one child is facing this hardship, sixteen million children are part of families below the federal poverty line, just in America. “About 22% of children in the U.S. lived below the poverty line in 2013, compared with 18% in 2008” (Calfas, 2015). Unfortunately, the rate of poverty affecting children has gone up through the years. More and more children will face poverty during day to day life. Children can be affected by poverty in many ways. “Poverty can impede children’s ability to learn and contribute to social, emotional, and behavioral problems. Poverty also can contribute to poor

The United States is the wealthiest nation in the world, but yet poverty remains prevalent. Childhood poverty affects every aspect of their life. “Poverty is not having income for basic needs, food, medical care or basic needs and housing” (Crosson-Tower, 2014, p. 59). Poverty is affecting thousands of Americans every day, and it isn 't sparing anyone of a particular race, age or gender, leaving people on welfare, and without homes, or transportation. Poverty is a crisis that deserves attention from everyone, and it has many faces that are often not recognized

With that said, the United States Census Bureau published the official poverty level report of 2014 in which 46.7 million people are living below quality standard. This alarming fact of recorded data, has the number of poor people or people living in poverty ranked as one of the largest since the start of publishing poverty statistics. In 2014 the poverty rate was 14.8%, which was down from 15.1% recorded in 2010. Household cash income for families was “less than half of the poverty line, or about $10,000 a year for a family of four” (World Hunger Education Service, 2016). It represented 6.6% of all people and 44.6% of those in poverty.