Review for Exam 1

Early 2000s: Healthy and Robust Economy

Public programs supporting low income families grow Poverty rate in 2003: 12.5%

Metropolitan Area Poverty Status

metropolitan areas (14.6) central city (20.0) suburbs (11.3) nonmetropolitan areas (17.0)

Consumption Poverty

what a family spends rather than income received

MYTH: Only a small proportion of Americans ever experience poverty

43.1 million Americans live in poverty Many Americans live barely above the poverty line and "slip in and out of poverty" From 2009 through 2011, 32% of the U.S population lived in poverty for 2 or more months.

(T/F) Approximately one third of the people living in poverty are children.

TRUE 43.1 million people lived in poverty in 2015. 14.5 million children lived in poverty in 2015. (14.5/43.15=33.6%) Although children make up only 23% of the U.S. population, they disproportionally represent 33% of people living in poverty. Children in the U.S. also experience higher poverty rates when compared to other industrialized nations.

(T/F) In the United States, more women live in poverty than men.

TRUE In 2015, 24 million women lived in poverty while 19 million men lived in poverty. This means 2.4% more women than men lived in poverty.

(T/F)In a three year period after the Great Recession, almost one out of every three Americans spent a period of time in poverty.

TRUE Many Americans tread just above the poverty line every year, barely hanging on. Over the 36-month period between 2009 and 2011, 32% of the U.S. population lived in poverty for at least two consecutive months.

Changes to US Views of Poverty

The Great Depression change in attitude regarding "individual failings" as the sole reason for poverty Publication of books and information that brought the issue of poverty back into view of mainstream America The Other America by Harrington (1962)

Views of Poverty in History

•Living standards very low in the 19th and early 20th century, but increased over time •As living standards increased, so did notions of what it meant to be poor • Reflects the idea of social influence • Also, real changes means real changes in needs

Criticisms of the Official Poverty Measure

1) Gross income is used to determine if you are in poverty Federal tax, state tax, social security, Medicaid, health insurance and other automatic deductions leave workers with much less income than their gross income 2) Does not account for near-money benefits such as housing subsidies and food stamps 3) Does not take into account necessary work-related related expenses (transportation, childcare, etc.) 4) Thresholds constructed rather crudely by today's standards 5) Thresholds based on food expenses in 1955 Food accounts for 1/8 of family expenses today rather than 1/3 in 1955. Other expenses are MUCH larger now Threshold should account for these other expense and their increased costs (healthcare, transportation, housing all account for a larger proportion of household budgets, etc.) 6) Most families have working mothers: childcare expenses are not considered. 7) Geographic price differences among regions: poverty thresholds are the same in New York City and rural Mississippi 8) Poverty threshold 2017 = 1965 + inflation Current measure is not a sophisticated measurement; crude measure of ? 9) Arguments that relative poverty measures superior More difficult now than in the past to be a participating member of society; to fulfill the roles we are assigned Greater expenses: Technology (cell phones, computers), child care and working parents, transportation (distance from where we live to where we work has increased markedly over the years), etc. Vanishing blue collar jobs, so higher education necessary; yet, education costs skyrocketing

Social Influence: Role in Determining Poverty Smith (1776) and Townsend (1993):

1) What we think of as poverty is relative to the society we live in What is considered poverty in contemporary US would not necessarily be considered poverty in other places and other times Views of poverty change relative to the conditions around us 2) Poverty is not having the necessities to participate in that particular society; not having the income or material goods needed to play the various roles which we assume Can have what is needed to survive and still be in poverty if you are not able to play the various roles and participate in society

MYTH: Most of the poor do not work

1/3 people in poverty are children More than 20% of Americans with a disability live in poverty 10% of the elderly live in poverty Over 60% of poor families have at least one worker

MYTH: The majority of people who live in poverty are African Americans.

African Americans are overrepresented among those in poverty. White Americans in poverty: 9% African Americans in poverty: 24% However, there are many more White Americans than African Americans living in poverty 17.8 million White Americans 10 million African Americans.

Consumption Poverty Advantages

Annual income is not always accurately reported Income may also misrepresent resources families have available to meet basic expenses, such as assets This directly measures expenditures on basic needs

Absolute Measures (Basic Type 1/2 of Poverty Measures)

Attempt to define a basic standard of $ that is essential Threshold that defines basic subsistence level of income Based on truly basic needs Remains constant over time (measured in the same manner)

Relative Measures (Basic Type 2/2 of Poverty Measures)

Comparative economic disadvantage Economic deprivation as relative to a society's level of development Poverty lines change as standards of living change

Official U.S. Poverty Measure (An Absolute Measure)

Created in 1963 based solely on the cost of food Two basic elements: poverty thresholds and a measure of income Thresholds: Vary by family size and composition Remain constant over time: updated only for inflation using the Consumer Price Index Income: based on before-tax (gross) cash income Application: Gross income < poverty threshold = poverty (and possibly benefits) = or > poverty threshold not considered to be in poverty

The Great Depression (1929-1939)

Economic hardship for nearly everyone 1933: 25% unemployment (4.4% today) 1937 about 40-50% of population poor by one estimate Poverty can no longer be blamed solely on individual failings and morality; the role of the economy now obvious Less individual failings and more failing economy

(T/F)For the most part, adults living in poverty who are able to work do not do so.

FALSE 28.6 million adults lived in poverty in 2015. More than 1-in-5 Americans with a disability live in poverty and 10% of the elderly are also in living in poverty. 60% of poor families have at least 1 worker A majority of adults living in poverty who are able to work, do work.

(T/F)The current federal minimum wage of $7.25 an hour is a livable wage for a single parent with one child.

FALSE A single parent with one child working at this minimum wage full-time every week of the year ($7.25 x 40 hours x 52 weeks) would earn $15,080 before any deductions or taxes. This is $1,257 below the poverty threshold of $16,337

(T/F) Most people who live in poverty are African American.

FALSE Although the African American population has the largest percentage of people living in poverty, there are many more white Americans living below the poverty line. In 2015, 17.8 million white Americans lived below the poverty line, compared to 10 million African Americans. However, there is a significant statistical difference between the poverty percentages of these populations. In 2015, 9% of all White Americans were in poverty, while 24% of African Americans were in poverty. In the same year, 12 million Hispanics (of any race) and 2 million Asian Americans lived in poverty.

(T/F) The number of people living in poverty without health insurance is increasing.

FALSE The number of people living in poverty without health insurance in 2015 decreased 2 percentage points from 2014. However, people living in poverty still had the lowest rate of health insurance coverage.

(T/F)The poverty rate among the elderly in the United States is higher than that of any other age group.

FALSE The poverty rate for America's elderly (people over 65) is 8.8%, The poverty rate for children under 18 remains the highest of the major age groups at 19.7% for 2015.

MYTH: All people need to do is to work to stay out of poverty.

Federal minimum wage: $7.25 7.25 x 40 hours a week x 52 weeks a year = $15,080 before taxes, insurance, etc. Poverty threshold for a single parent $16,240

Highest Poverty Rate by State

Georgia (19.1) Arkansas (19.5) Louisiana (20.4) New Mexico (21.5) Mississippi (22.6)

The Other America by Michael Harrington (1962)

Harrington wrote about the large amount of poverty in the US; the groups that had been left behind The "Other" America Harrington's purpose was to draw attention to poverty in the US It did so - over a million copies sold Influential in President Kennedy's plan for poverty Johnson's War on Poverty after Kennedy assassinated 22% in poverty when Harrington wrote in 1962 11% in 1973 (lowest ever)

How does this impact children?

Higher infant mortality Lower birth weight Developmental delays Chronic stress Poor academic achievement Greater rates of school dropout Increased impulsiveness and aggression Greater anxiety and depression More ADHD diagnoses Higher rates of conduct disorder Greater rates of teen pregnancy

What does poverty mean for children and the environments in which they live?

Inadequate nutrition/food scarcity Fewer learning experiences Residential instability Lower quality schools Greater exposure to environmental toxins Increased likelihood of family violence and/or neglect Increased likelihood of homelessness Dangerous neighborhoods Less access to healthcare and other services Substandard housing Inadequate child care

1990s to 2000: Healthy Economy

Increasing standard of living for poor and rich Americans "Welfare Reform" formally adopted Poverty rate in 1983: 15% Poverty rate in 1993: 15%

Why Should We Be Concerned About Poverty?

Individual consequences: health and well being Economic consequences: economic growth Social and political consequences: social disorder and alienation Moral issues: poverty amidst affluence

Kids: Absolute Poverty Measure

Kids in the U.S. experience higher poverty rates than most developed nations. Only Greece, Mexico, Israel and Turkey have higher child poverty rates than the U.S.

1776 Adam Smith Wealth of Nations importance of social perceptions in determining what constitutes economic hardship

Lack of necessaries: being unable to consume "not only the commodities which are indispensably necessary for the support of life, but whatever the custom of the country renders it indecent for creditable people, even of the lowest order, to be without."

1964 President Johnson began "War on Poverty"-reduce

Many programs introduced to reduce poverty in US Programs were largely successful: Poverty reduced Poverty rate in 1964: 19% Poverty rate in 1973: 11%

Lowest Poverty Rate by States

New Hampshire (8.8) Maryland (10.1) New Jersey (10.4) Alaska (9.4) Connecticut (10.9)

Poverty Rate by Region

Northeast (13.1) Midwest (14.0) South (16.0) West (15.8)

Consumption Poverty Disadvantages

Not many surveys collect data on expenditures Some people may consume little by choice (rather than necessity) Consumption may be funded by debt; not clear if people who go into debt to temporarily boost consumption are not poor

Patient Protection and Affordable Care Act (Obamacare)

Passed in 2010; 2014 major provisions begin Number of people in poverty without health insurance decreases in 2015

Townsend (1993). The International Analysis of Poverty

People are social beings who assume many roles in a community—worker, citizen, parent, friend, etc. Poverty should be defined by the lack of sufficient income to "play the roles, participate in the relationships, and follow the customary behavior which is expected of them by virtue of their membership of society."

Great Recession (2007-2009) -increase

Poverty rate in 2007: 13% (39.2 million people) Poverty rate in 2009: 14.3% Poverty rate in 2003: 12.5%

Material Hardship

Rationale: these are more "direct" measures of well being Hardship indicators can include: Food security, housing problems, neighborhood conditions, difficulty meeting basic needs, ownership of consumer items, fear of crime Growing interest in and use of these measures Disadvantages Lack of consensus regarding definition and items to include Lack of annual data Tastes or preferences affect such measures (e.g., some people do not mind not having basic consumer items)

1975-1985: Economic Decline - increased

Recessions, high inflation and unemployment "War on Poverty" to call for "Welfare Reform" Antipoverty efforts reduced Poverty rate increases Poverty rate in 1973: 11% Poverty rate in 1983: 15%

The Social Causation Perspective

The social causation perspective assumes that social conditions - poverty, income, and socioeconomic status (SES), in particular - lead to variations in health, well-being, social and cognitive functioning, and many other outcomes. The mechanisms through which poverty is expected to influence outcomes may vary, but what is central to the social causation perspective is the notion that poverty, income and/or SES impact human development.

The Social Selection Perspective

The social selection perspective is the major alternative explanation to the social causation perspective. According to this perspective individual differences in characteristics are the cause of both SES/poverty and human development outcomes. With regard to children and adolescents, the social selection perspective argues that parents' traits influence both their SES/poverty and their children's outcomes. The method of this transmission is not essential to the argument (although the most commonly proposed mechanism is genetic). The critical component of the argument is that the observed associations between parental SES and child/adolescent outcomes are spurious (i.e., not accurate) because they are caused by a third variable (the characteristics of the parent).

Views of Poverty: What is being poor?

Views of poverty vary over time and place (Social perceptions) Contemporary American views vary greatly 1993 General Social Survey: People who have an income below a certain level can be considered poor. That level is called the poverty line. What amount of weekly income would you use as a poverty line for a family of four (husband, wife, and two children) in this community? $38 a week ($38*52 weeks = $1976 a year) $2305 a week ($2305*52 weeks = $119,860 a year) Average: $524 a week ($524*52 weeks = $27,248 a year) US poverty level for family of 4 in 2011: $22,350

Post-Depression Poverty

WWII Expenditures on the war effort and industry Return to prosperity Poverty reduced, but still very high, especially for the elderly, rural, and African Americans Middle-class white Americans back to normal and never better Poverty seen as an important issue during and immediately after Depression, but largely "forgotten"

Post-Recession (2010-Present)

Welfare Reform policies remain Poverty rate in 2010: 15% Poverty rate in 2014: 14.8% Poverty rate in 2015: 13.5% (43.1 million people) Largest annual drop (1.2%) since 1999