U.S. census report reveals spike in poverty levels

NARAYAN LAKSHMAN

Source: http://www.thehindu.com/news/international/article695380.ece

The United States Census Bureau has revealed that poverty in the country jumped significantly in 2009, reflecting the debilitating effects of the recession on those at the bottom of the economic ladder.

In news that would add to the worries of President Barack Obama, who is struggling to get various stimulus bills passed by Congress, the USCB said the official poverty rate in 2009 was 14.3 per cent — up from 13.2 per cent in 2008.

The report says this constitutes the second “statistically significant annual increase in the poverty rate since 2004”, with 43.6 million people in poverty in 2009, up from 39.8 million in 2008. In terms of absolute numbers of people in poverty, the 2009 rise was the third consecutive one.

The most recent results also set an egregious record for “the largest number in the 51 years for which poverty estimates have been published”, said the USCB.

Touching upon trends that are likely to evoke serious concern from policymakers the USCB noted between 2008 and 2009, the poverty rate for children under the age of 18 increased from 19 per cent to over 20 per cent. This implies that since the onset of the recession in 2007, 2.1 million more children have been thrust into poverty.

The agency report also indicates the close linkages between access to healthcare and poverty levels, pointing out that the number of people without health insurance coverage rose from 46.3 million in 2008 to 50.7 million in 2009. This represented a percentage increase from 15.4 per cent to 16.7 per cent over the same period.

Asians as an ethnic group were the only category of respondents for whom the numbers of those without healthcare insurance declined. For White, African-American and Hispanic Americans the numbers increased. Also, while real median income did not change for Asian and Hispanic-origin households between 2008 and 2009, it declined for African-American and White households.

The USCB results are likely to strengthen the White House's case for more policy measures aimed at protecting households and small businesses.