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United States Poverty Analysis

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Today in the United States poverty is a big problem that gets worse by the day and not a whole lot gets done about it. We have millions and millions of people every day fighting to just keep food on the table. Poverty in the United States comes from the prolonged economic recession that forced millions of Americans into poverty, with nearly 15 percent of the population or roughly 46.7 million people living below the poverty line in 2014. What most people think the way money is divided up in the United States is actually pretty far off what the reality is. Over the years there has been reforms to help those who are living in poverty, but those reforms have been holding many people back from moving up the social ladder. The “War on Poverty” …show more content…

Census Bureau counts people in poverty with two measures. Both the official and supplemental poverty measures are based on estimates of the level of income needed to cover basic needs. The People and families that live in households that have a total earning below the determined income are considered to be in poverty. When it comes to income inequality we are horrible at trying to measure it. Even though there is many ways to figure out how the money should be spread out among everyone we can’t quite get it right. And so perhaps it's not surprising that Americans are terrible at estimating the true extent of the problem. In the US the average American believes that the richest fifth own 59% of the wealth and that the bottom 40% own 9%. The reality is shockingly different. The top 20% of US households own more than 84% of the wealth, and the bottom 40% combine for a paltry 0.3%. For example the Walton family has more than 42% of the wealth out of American families combined. In our ideal distribution, the top quintile owns 32% and the bottom two quintiles own 25%. Having an ideal or more evenly distributed economy would not only help the economy but it would help some of there family’s that are barely getting by. It would give family and people the opportunity to get healthcare, better child care for there kids, and just have better means to provide for there family. Now im not saying the super rich have to stop what there doing but there needs to be a …show more content…

Things like Food Stamps, Medicare, refundable tax credit, the list goes on theseare some of the things that have be created to help. People that are in SNAP or receving food stamps don't actually use stamps anymore. In 2008, the Food Stamp Program was renamed the Supplemental Nutrition Assistance Program (SNAP). As of late 2009, about 40 million people were enrollaed in the program. Another program is Medicare, Medicare is a very large and complex medical insurance program with several parts. While the program is primarily aimed at people aged 65 or over, there are certain options available for those under 65. In 1983, a full-time, minimum wage worker earned about $6,700 per year and was eligible for a maximum EITC of $500,which was about equal to the employee’s share of payroll taxes. Today, a full-time, minimum wage worker earns around 61 percent of the poverty line for a family of four. After taking into account for the family’s earnings, payroll taxes, and both the EITC and CTC, the family’s income rises to 87 percent of the poverty line, this is defiantly a significant improvement in that family’s economic well-being. These programs have help a lot of families and individuals in need making a few changes to the way business run and pay there employess will make even more success in fighting the poverty

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