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Poverty

Poverty. 13-3. Poverty Threshold. The income level below which income is insufficient to support a family or household. It varies with size and structure of family Was $17,463 for a family of four. Poverty Rate.

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Poverty

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  1. Poverty 13-3

  2. Poverty Threshold • The income level below which income is insufficient to support a family or household. • It varies with size and structure of family • Was $17,463 for a family of four

  3. Poverty Rate • Percentage of people who live in households with income below the official poverty threshold • Varies greatly by groups

  4. For Example: • African Americans and Hispanics is more than twice the rate for whites. • Single Mother families have a rate SIX TIMES two parent families. • Inner city residents double the rate of rural residents.

  5. Causes of Poverty • Lack of education: high school graduates earn a third more. • Location: Earn less in the inner city than in the suburbs. • Racial and Gender Discrimination: white men generally earn more. Is diminishing though

  6. More Causes • Economic Shifts: Expansion and contraction effects • Shifts in Family Structure: Higher divorce rate meaning more likelihood of poverty stricken families.

  7. Income Distribution • How the nation’s total income is distributed among its population. • Wealthiest fifth earn as much as the bottom 4/5 combined.

  8. Antipoverty Policies • Enterprise Zones: where business can locate tax free • Employment Assistance: job-training programs and minimum wage requirements • Welfare Reform: Block Grants and Workfare

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