mazher555555 - Rural Poverty At A Glance uring the 1990s...

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Rural Development Research Report Number 100 July 2004 United States Department of Agriculture Economic Research Service Rural Poverty At A Glance Nonmetro Metro Gap Poverty rates by residence 35 30 25 20 15 10 5 0 Percent poor 1959 1964 1969 1974 1979 1984 1989 1994 1999 Note: Metro status of some counties changed in 1984 and 1994. Metro and nonmetro rates are imputed for 1960-1968, 1970, and 1984. D uring the 1990s, America experienced unprecedented economic growth and a large decline in the national poverty rate. Between 1993 and 2000, real GDP (gross domestic product adjusted for inflation) grew by 4 percent annually, which was significantly greater than the 2.7-percent average growth rate over the previous two decades. During this same time period, the poverty rate declined from a decade high of 17.2 percent in 1993 to a low of 11.3 percent in 2000. The new century ushered in a brief recession, thereby halting the Nation’s economic expansion and leading to an increase in poverty. While the recession officially ended in late 2001, the poverty rate has continued to increase, with the most recent estimates indicating that just over 12 percent of the American population was poor in 2002. The rate of poverty is not only an important social indicator of the well-being of America’s poor, but it is also a useful tool in shaping Federal policies and targeting program benefits to those most in need. Poverty rates, however, are not distributed equally across the United States. Thus, strategies to reduce poverty must consider the differences in the nature of poverty between nonmetropolitan (nonmetro) and metropolitan (metro) areas of the country. While metro and nonmetro areas have shared similar upward and downward trends in poverty rates over time, the nonmetro rate has exceeded the metro rate every year since poverty was first officially measured in the 1960s. In the 1980s, the difference between the nonmetro and metro poverty rates was 4.4 percentage points. While this gap shrank during the 1990s, poverty rates in nonmetro areas still averaged 2.6 percentage points higher than rates in metro areas. USDA’s Economic Research Service (ERS) analyzes the ongoing changes in rural areas and assesses Federal, State, and local strategies to enhance economic opportunity and quality of life for rural Americans. This publication provides the most recent information on poverty trends and demographic characteristics of the rural poor for use in developing policies and programs to assist rural people and their communities.
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In 2002, 14.2 percent of the nonmetro population, or 7.5 million people, were poor, compared with 11.6 percent of the metro population. This difference has persisted through time, and it is also evident when poverty is analyzed by race, ethnicity, age, and family structure. Race and ethnicity strongly correlated with rural poverty
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This note was uploaded on 10/01/2010 for the course RDS ECon530 taught by Professor Musharaftalpur during the Spring '10 term at University of Karachi.

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mazher555555 - Rural Poverty At A Glance uring the 1990s...

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