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Understanding Poverty and Antipoverty Measures

Delve into the concept of poverty, its causes, and effects on different groups. Discover how income distribution and antipoverty policies can help combat poverty. Explore key factors influencing poverty rates and learn about effective interventions.

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Understanding Poverty and Antipoverty Measures

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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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