It's not the Poverty Rate, It's the Poverty Level!

Because the poverty rate increases when there is a Recession, yesterday's "breaking news" was not unexpected... although it is still troubling that the US is now experiencing the highest poverty rate since it spiked to 15.2% in 1983, during the early Reagan years[1].  But even more than the poverty rate, I find the poverty level to be very disturbing.  Apparently, a family of four (2 adults and 2 children) that makes even one dollar more than $22,314 per year before tax is NOT considered to be living in poverty[2]. Huh?

A family that brings home $22,315 per year, $1,860 per month before tax is taken out, is left with a whopping $1525 per month after tax (assuming an 18% rate) with which to shelter, clothe and feed four people. This is only $355 a week for two adults and two children.  And these number apply to both high cost-of living places such as New York City and low cost of living areas such as Tulsa, OK.  No wonder folks are heading south.

Consider for a moment the following monthly budget which lists only essential costs and does not include luxury items such as Cable TV or Internet connectivity:

Rent $650
Utilities $150
Groceries ($100 per week) $430
Clothing, school supplies and fees, child care, medical co-pays, etc. ($75 per week) $323
Car Payment (assuming one car is paid for) $300
Car Insurance (2 cars at $300 each for 6 months) $100
Gas (350 miles per week total for 2 cars, 25 MPG, $3.20/gal) $193

Total CASH (after tax) needed: $2,145 - assuming a tax rate of 18%, this equates to $2,616 per month before tax which is $1,100 more per month than what our above-the-poverty-level family makes.

How in the world can a family survive on $1525 per month, which is only $355 per week? Could you house, clothe and feed your family for this? Consider that people in very low income brackets hardly ever own their own property and so paying rent is just about unavoidable.  It's also hard to get the money together for college, or even technical or trade school. How does a family like this get ahead when it's all they can do not to drown?

Now don't assume that I am a complete bleeding heart. I strongly believe in personal responsibility and have faith that some people can and will pick themselves up by their own bootstraps. And I also concede that the Entitlement Mentality does exist and is damaging to our society as a whole.  However, I also feel that people should have a chance, an opportunity to better themselves... and that a civilized society should help those in need. I do not think we should walk past a less fortunate person and assume that he somehow "deserves"  his poor circumstance.

...the moral test of government is how that government treats those who are in the dawn of life, the children; those who are in the twilight of life, the elderly; those who are in the shadows of life; the sick, the needy and the handicapped. ~ Last Speech of Hubert H. Humphrey

 Not a fan of Hubert Humphrey?  Then how about:

 A nation's greatness is measured by how it treats its weakest members. ~ Mahatma Ghandi

How do you feel about society helping those in need?  And where does this fit in with your spiritual and/or religious beliefs?



SOURCES

(1) http://www.ncbi.nlm.nih.gov/pubmed/12280345
(2) http://www.census.gov/newsroom/releases/archives/income_wealth/cb11-157.html