Poverty

This Wednesday, the Census Bureau will release new data on poverty, income, and health insurance in the U.S. in 2011. As we get ready to crunch numbers, we thought it would be helpful to take a deeper look at what these numbers tell us – and don’t tell us – about poverty. Here are a few FAQs on poverty and the Census Bureau data.

What does the poverty rate measure?

The poverty rate measures the percentage of the U.S. population with income below the federal poverty threshold, often referred to as the “poverty line,” for their family size (e.g., $22,811 in 2011 for a family of four with two kids). Income is calculated before taxes and includes only cash income such as earnings, pension/retirement income, Social Security, unemployment benefits, and child support payments.

What doesn’t the poverty rate measure?

A number of federal and state benefits that help support lower-income families are not counted as income in the official poverty measure. “Non-cash benefits” like food stamps (SNAP) and housing assistance, and tax benefits like the Earned Income Tax Credit (EITC) and the Child Tax Credit, do not count as income for purposes of calculating the official poverty rate.

The official poverty measure also does not account for any expenditures, such as those on medical needs or child care, which can be very large for some families and leave them little income to meet other basic needs.

Three new studies provide additional evidence of the importance of early childhood investments for ensuring children’s successful development and future well-being.

A study published in the journal Child Development found that children whose families received child care assistance were able to attend higher-quality child care than children whose families were eligible for, but did not receive, child care assistance. Given that that higher-quality care can help boost children’s growth and learning, this new study shows the importance of helping more low-income families pay for child care so they can afford good options. However, the study also found that the quality of care used by families receiving child care assistance was not as high as the quality of care for families using Head Start and public prekindergarten programs, suggesting that even more can be done to improve families’ access to high-quality care. Read more »

This blog post is a part of NWLC’s Mother’s Day 2012 blog series. For all our Mother’s Day posts, please click here.

My whole life, whenever I would thank my mom for doing something for me (or on those few occasions when I might grumble that she was being a little overprotective), she would always respond, “that’s what they pay me for.”

What she was really saying is that picking me up from school in the middle of the day because I was sick, or helping me with homework assignments, or asking if I was eating enough calcium (yes, Mom) was all part of being a parent. But I know that no one ever paid my mom to mother, even though it is hard and extremely expensive work.

So while there was no motherhood bureau paying my mom for raising her daughters, her employer was paying her a living wage with benefits.

Unfortunately, not every mother receives a living wage or benefits like paid vacation time to attend parent-teacher conferences and school plays, or health insurance to care for themselves and their children. Between the gender wage gap, the concentration of women in low-paying jobs, and a slow economic recovery for women, too many moms are parenting on nickels and dimes.

The millions of women who lived in poverty in 2010 aren’t thrilled about it, neither are the hundreds of thousands of women who lost their public sector jobs in the last two years, but a large portion of Congress doesn’t seem to care about struggling families. Read more »

In an unsurprising but discouraging vote yesterday, the House of Representatives passed a budget bill to implement components of the FY 2013 budget resolution introduced by Rep. Paul Ryan (R-WI). 218 Members of Congress, all Republicans, voted in favor of the bill, which would slash funding for Medicaid, food stamps (SNAP), child care, the Affordable Care Act, and more. (Sixteen Republicans and 183 Democrats voted no.)

Supporters have asserted that these drastic cuts – which would cripple programs that are vital to low-income women and their families – are necessary to avoid the automatic cuts (known as the “sequester”) scheduled to take effect in 2013 under the Budget Control Act. New revenue from the wealthiest individuals and corporations would be a far better way to replace the sequester, but the bill that passed the House does not ask for one penny from those who could actually afford to contribute to deficit reduction. Read more »

This blog post is a part of NWLC’s Mother’s Day 2012 blog series. For all our Mother’s Day posts, please click here.

I spend a lot of time working with and thinking about the statistics of poverty – I think it is a valuable job and I love it. But poverty is more than statistics. Poverty is a personal issue and it is especially personal for me.

When my mom was a child, growing up in New England in the 1950s, she was poor. What did being poor mean for my mom? It meant that her family didn’t have enough to eat – sometimes they would divide up a head of lettuce and call it dinner. It meant that she and her three brothers had to decide who got to go to school on which day because there wasn’t enough money for everyone to have shoes – and if it was your day to be barefoot, you had to stay home.

When I think about my mom’s childhood, it pains me to think about all of the safety net programs we have now that her family could have benefitted from but didn’t have access to. Read more »

This blog post is a part of NWLC’s Mother’s Day 2012 blog series. For all our Mother’s Day posts, please click here.

As you probably know, Mother’s Day is coming up on Sunday. Here at the National Women’s Law Center, we care a lot about mothers – not only our own (although you’re totally awesome, Mom!), but also the millions of women across the country who are trying to raise kids, care for their own aging parents, climb the career ladder, save for retirement, and protect their health – often all at the same time, and often with the odds stacked against them. My work in the Family Economic Security program focuses on advancing policies that help low-income women and their families make ends meet, and if you’ve seen any of my blog posts lately, you’ll know one policy change that could really help working moms is an increase in the minimum wage. 

Women are nearly two-thirds of workers making the federal minimum wage or less. Many of them are mothers struggling to support their families on earnings of less than $15,000 a year for full time work. And on top of their tough jobs – waiting tables, caring for children and homebound seniors, cleaning homes and offices – many face the nearly impossible task of finding affordable care for their children while they’re at work, often without a single paid sick day to fall back on in an emergency.

The Rebuild America Act, introduced by Senator Harkin (D-IA) in late March, would help address several challenges that low-income working moms face by raising the minimum wage, including the minimum cash wage for tipped workers; expanding funding for child care assistance; and guaranteeing paid sick days. Read more »

While Washington begins debate on an FY 2013 budget proposal that would slash federal safety net programs (and everything else), some states facing projected budget shortfalls in FY 2013 have already proposed draconian cuts of their own. Alabama is one of those states, and as Greg Kaufman recently reported in The Nation, the steps Alabama’s legislature takes over the next few months to close its FY 2013 budget gap could be disastrous for struggling women and their families.

For example, at a hearing late last month, a state legislator with a lead role in budget drafting suggested that a 25 percent cut to general fund revenues flowing to the state’s Department of Human Resources (DHR) is likely next year. That’s a huge cut – so huge that the Commissioner of DHR, Nancy Buckner, testified that she would be forced to entirely eliminate the state’s Temporary Assistance for Needy Families (TANF) and child support enforcement programs.

Shutting down these programs would be devastating for vulnerable families in Alabama. Read more »

News outlets across the country, including ESPN, The Nation, and the Chicago Sun Times, have been covering the Joseph Williams’ story - a University of Virginia football player who joined several other students on a hunger strike organized by the Living Wage Campaign.

Williams’ hunger strike protested the $7.25 hourly wage of some university employees. At the intersection of sports and politics, the story is about race and class, but it’s also about gender, an angle largely neglected in media coverage of the strike.

“As one of four children supported by a single mother, I have experienced many period of economic hardship in my life,” wrote Williams in an essay on reasons for striking. “On a personal level, this cause is one that hits very close to home.”

He is not alone. Thirty-four percent of families headed by working black single mothers were living in poverty in 2010.

Williams specifically identified women and African Americans as most of the university employees affected by low wages, acknowledging one full-time female employee at the university who was unable to pay rent and forced to go without electricity for three months. When asked why it was important for him to take this stand, Williams named two women workers he knows personally who are “being marginalized and exploited.” Read more »

Yesterday the Half in Ten campaign released its report Restoring Shared Prosperity. The report, using data from 2010, sets policy benchmarks by which the campaign will track the progress, in every state, of reaching Half in Ten’s goal of cutting poverty in half over the next ten years.

Cutting poverty in half is an important goal for women and their families. If the level of poverty in 2010 were cut in half today:

• More than 23 million fewer people would be in poverty – 8.6 million of whom would be women.
• One in nine, rather than more than one in five children, would be poor.
• Poverty rates for black and Hispanic single mother families would drop to one in four from one in two.

Most of the work of the congressional super-committee (officially, the Joint Select Committee on Deficit Reduction) is going on behind closed doors – but reports are leaking out. And the word is that some members of the super-committee are targeting programs for low-income people for cuts. Today’s post focuses on the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps) – but Medicaid, the Affordable Care Act, Social Security, Medicare, and other vital programs are also threatened, and we’ll have more to say about them as the committee continues its work. Read more »