Poverty

Statistics and Theories

Why do some people get ahead in life and some do not?

Complete ranking in your groups

Defining Poverty Absolute

Life threatening level of poverty. Constant across time and countries

Relative Varies across time and location. Such as poorest

10%

In practice Minimum annual income to purchase necessities of life in

the US 3 x food budget Family of 4 $22,113

Changing Definition Moving to SPM –

Supplemental Poverty Measure

Of the 46 million poor:

Next question, what percent of each race is poor?

Why some people get ahead: General Agreement:

Education Hard work* Family environment Connections Luck

Studies show all of the factors matter.

Which are under our control? Anyone pick their parents?

Why is there Persistent Poverty? Causes

Structure

Culture

Exploitation

Read poverty sheet

List reasons given List solutions given Build a model

Poverty as Culture Causes

Within the person Attitude Present-orientedness Passed down

Solutions Not money Not opportunities Change the person

Criminalizing poverty Blaming the victim The “takers” Food stamp scandals

Poverty as Structure Causes

Lack of schools, health care and jobs nearby

Institutional discrimination

Structural unemployment

Solutions Neighborhood

improvements Job training Equal opportunities

Poverty as Exploitation Causes

Upper class want to maintain a source of cheap labor

Tax and subsidy rules benefit the rich

Solutions Social movement Revision of tax

policies

Persistent Poverty Causes

Structure

Culture

Exploitation

Solutions

Improve access to services

Improve attitudes Present-Orientedness

Re-engineer the system

Poverty Programs: Federal Public Assistance

SSI Minimum income for aged,

blind, disabled Food Stamps (SNAP) EITC Housing & Energy

Assistance TANF Block grants to

states Does NOT include Social

Security NOT need-based

What percent of the federal budget went to the ‘safety net’?

A. 13 % B. 21 C. 39 D. 47

Estimates are the poverty rate would have doubled without these programs in the recent recession.

Poverty Programs:State Public Assistance

What percent of assistance dollars are distributed as cash payments?

A. 28% B. 41% C. 56% D. 76 %

Since 1996, AFDC has been TANF. A federal block grant to states.

Welfare as a way of life

What is the time limit for receiving assistance?

A. There is no time limit

B. 7 years C. 5 years D. 3 years

Families on assistance are subject to work-requirements, education, training or community service.

Persistent Poverty

Dependence is defined by more than 50% of the family’s income coming from TANF, SNAP or SSI.

Nearly half (49.6%) of TANF recipients entering between 2001-2003 received benefits for 4 months or less.

What percent of the total population are considered welfare dependent?

A. 1.2% B. 3.8 C. 5.3 D. 11.0

Public Assistance Recipients

Number of ChildrenPercentage

023%

129%

224%

3 and more 25%

Most families receiving public assistance have how many children?

A. 0 B. 1 C. 2 D. 3 or more

What are the consequences of Poverty? To Individual or Family

Poorer health Less educational attainment

Of eight grades who scored in the top 25% on a math test:Parents income Finishing

collegeBottom 25% 29%Top 25% 79%

What are the consequences of poverty? To society

Higher healthcare costs Social spending Social problems associated with income inequality:

crime Lost talent and productivity Homelessness Higher stress levels and violence

Costs to US of childhood poverty total $500 bil per year (increased medical needs, crime victims, public expenditures, lost output and

more)

Look at economic causes and effects

Wage determination Unions Discrimination Income inequality