Tuesday, 25 November 2014 / TRUTH-OUT.ORG

The Real Numbers: Half of America in Poverty -- and It's Creeping Upward

Tuesday, 28 May 2013 09:30 By Paul Bucheit, AlterNet | Report

Open Hands(Image: Open hands via Shutterstock)Census Bureau has reported that 15% of Americans live in poverty. A shocking figure. But it's actually much worse. Inequality is spreading like a shadowy disease through our country, infecting more and more households, and leaving a shrinking number of financially secure families to maintain the charade of prosperity. 

1. Almost half of Americans had NO assets in 2009 

Analysis of  Economic Policy Institute data shows that Mitt Romney's famous 47 percent, the alleged 'takers,' have taken nothing. Their debt exceeded their assets in 2009. 

2. It's Even Worse 3 Years Later 

Since the recession, the disparities have continued to grow. An  OECD report states that "inequality has increased by more over the past three years to the end of 2010 than in the previous twelve," with the U.S. experiencing one of the widest gaps among OECD countries. The 30-year  decline in wages has worsened since the recession, as low-wage jobs have replaced formerly secure middle-income positions. 

3. Based on wage figures, half of Americans are in or near poverty. 

  1. IRS reports that the highest wage in the bottom half of earners is about $34,000. To be eligible for food assistance, a family can earn up to  130% of the federal  poverty line, or about $30,000 for a family of four. 

Even the Census Bureau recognizes that its own  figures under-represent the number of people in poverty. Its  Supplemental Poverty Measure increases, by 50%, the number of Americans who earn between one-half and two times the poverty threshold. 

4. Based on household expense totals, poverty is creeping into the top half of America. 

A family in the top half, making $60,000 per year, will have their income reduced by a total tax bill of about $15,000 ($3,000 for  federal income tax and $12,000 for  payroll, state, and local taxes. The  Bureau of Labor Statistics and the Census Bureau agree that food, housing, and transportation expenses will deduct another $30,000, and that total household expenditures will be about $50,000. That leaves nothing. 

Nothing, that is, except debt. The median  debt level rose to $75,600 in 2009, while the median family  net worth, according to the Federal Reserve, dropped from $126,400 in 2007 to $77,300 in 2010. 

5. Putting it in Perspective 

Inequality is at its ugliest for the hungriest people. While food support was being targeted for  cuts, just  20 rich Americans made as much from their 2012 investments as the entire  2012 SNAP (food assistance) budget, which serves 47 million people. 

And as Congress continues to cut life-sustaining programs, its members should note that their 400 friends on the  Forbes list made more from their stock market gains last year than the total amount of the  foodhousing, and education budgets combined. 

Arguments about poverty won't end. Neither should our efforts to uncover the awful truth.

This piece was reprinted by Truthout with permission or license. It may not be reproduced in any form without permission or license from the source.

Paul Bucheit

Paul Buchheit works for US Uncut Chicago. He is a part-time faculty member in the School for New Learning at DePaul University, author of UsAgainstGreed.org and RappingHistory.org, and the editor of "American Wars: Illusions and Realities" (Clarity Press). He can be reached at paul@UsAgainstGreed.org.


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The Real Numbers: Half of America in Poverty -- and It's Creeping Upward

Tuesday, 28 May 2013 09:30 By Paul Bucheit, AlterNet | Report

Open Hands(Image: Open hands via Shutterstock)Census Bureau has reported that 15% of Americans live in poverty. A shocking figure. But it's actually much worse. Inequality is spreading like a shadowy disease through our country, infecting more and more households, and leaving a shrinking number of financially secure families to maintain the charade of prosperity. 

1. Almost half of Americans had NO assets in 2009 

Analysis of  Economic Policy Institute data shows that Mitt Romney's famous 47 percent, the alleged 'takers,' have taken nothing. Their debt exceeded their assets in 2009. 

2. It's Even Worse 3 Years Later 

Since the recession, the disparities have continued to grow. An  OECD report states that "inequality has increased by more over the past three years to the end of 2010 than in the previous twelve," with the U.S. experiencing one of the widest gaps among OECD countries. The 30-year  decline in wages has worsened since the recession, as low-wage jobs have replaced formerly secure middle-income positions. 

3. Based on wage figures, half of Americans are in or near poverty. 

  1. IRS reports that the highest wage in the bottom half of earners is about $34,000. To be eligible for food assistance, a family can earn up to  130% of the federal  poverty line, or about $30,000 for a family of four. 

Even the Census Bureau recognizes that its own  figures under-represent the number of people in poverty. Its  Supplemental Poverty Measure increases, by 50%, the number of Americans who earn between one-half and two times the poverty threshold. 

4. Based on household expense totals, poverty is creeping into the top half of America. 

A family in the top half, making $60,000 per year, will have their income reduced by a total tax bill of about $15,000 ($3,000 for  federal income tax and $12,000 for  payroll, state, and local taxes. The  Bureau of Labor Statistics and the Census Bureau agree that food, housing, and transportation expenses will deduct another $30,000, and that total household expenditures will be about $50,000. That leaves nothing. 

Nothing, that is, except debt. The median  debt level rose to $75,600 in 2009, while the median family  net worth, according to the Federal Reserve, dropped from $126,400 in 2007 to $77,300 in 2010. 

5. Putting it in Perspective 

Inequality is at its ugliest for the hungriest people. While food support was being targeted for  cuts, just  20 rich Americans made as much from their 2012 investments as the entire  2012 SNAP (food assistance) budget, which serves 47 million people. 

And as Congress continues to cut life-sustaining programs, its members should note that their 400 friends on the  Forbes list made more from their stock market gains last year than the total amount of the  foodhousing, and education budgets combined. 

Arguments about poverty won't end. Neither should our efforts to uncover the awful truth.

This piece was reprinted by Truthout with permission or license. It may not be reproduced in any form without permission or license from the source.

Paul Bucheit

Paul Buchheit works for US Uncut Chicago. He is a part-time faculty member in the School for New Learning at DePaul University, author of UsAgainstGreed.org and RappingHistory.org, and the editor of "American Wars: Illusions and Realities" (Clarity Press). He can be reached at paul@UsAgainstGreed.org.


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