Measuring poverty in the us poverty threshold

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Measuring Poverty in the U.S. - Poverty Threshold Determined by the SSA in 1960 Based on the cost of a basic nutritionally adequate diet multiplied by 3 Assume that the poor spend roughly 1/3 of their annual income on food Adjusted annually for inflation In 2011 the poverty threshold for an individual was $10, 890 and $18, 530 for a family of three Assumes that the concern is largely that everyone gets to eat - Extreme poverty- Family income below ½ of the poverty - Many sociologist argue that poverty threshold should be set at ½ of the median income for households ($27, 445) Problem with Measure (the US) - Nothing that looks at the size of the community, so ignores the fact that housing now takes up a much larger proportion of family budget than food - Does not consider the variation in the cost living across the country - Does not consider health care costs Extent of Poverty - THE U.S. Based on the “official” definition of poverty in the US, there are roughly 35 million people living in poverty (total population about 300 million) 11.7%
When considering the “true” cost to live in the US many scholars have suggested that the number of people living in poverty could be closer to 80 million people (30%) of the population) - CANADA Poverty rate in 2003 was 13.2% (MBM) Slightly higher than the US but Canada uses a different definition of poverty Who is poor in the US?
Who is poor in Canada?
SOCI 250- Lecture 5- Poverty Continued - It would cost more to be more; there are penalties for being poor. Poor pay more for - Housing - Food - Household products - CREDIT/ Check Cashing (2%)/ Bill Pay- Money order $3 Money order $3 Because of this, when they want to seek credit, they have to pay a very high rate. High interest fees trying to get a pay- check cash (if you don’t have a checking account, but you have to pay bills, you have to send checks, if you are poor, you have to pay money to get money orders because of poor credit) - To wash clothes - Cars/ car repair -

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