Poverty In The Census Bureau

What is poverty?

Merriam-Webster’s (n.d.) definition of poverty is “the state of being poor; a lack of something”. As an overall concept this designation may suffice, however, it does not provide the ability to statistically measure such a condition among the population. Without a consensus on how to describe poverty, a standard measurement cannot be devised. Instead, two additional definitions, which are used frequently, are the poverty guidelines from the U.S. Department of Health and Human Services (HHS) and the poverty threshold from the U.S. Census Bureau. Both measurements have their limitations, however, they do provide a baseline in which comparisons can be made from historical data and the information can assist in preparing for potential

impacts in the future.

Measurements of Poverty

The poverty guidelines developed by HHS were intended to provide “a simplification of the poverty thresholds for use for administrative purposes — for instance, determining financial eligibility for certain federal programs” (“2015 Poverty Guidelines”, 2015). Many agencies use this simple chart to determine the types of benefits granted to individuals that may fall below or at a certain percentage above these levels. For instance, PORT Human Services is a non-profit behavioral health agency that serves uninsured or underinsured persons in need of help. Patients are assessed a fee by utilizing a sliding fee scale that was developed using the HHS poverty guidelines. This tool ensures that people, who need services but may not have the ability to pay, have equal opportunity to receive assistance. The simplicity of the HHS guidelines are a useful tool for agencies; however, the scale is not very flexible and has not been frequently utilized to measure poverty.
The U.S. Census Bureau’s poverty thresholds (see Table 1) are calculated using multiple considerations of a family’s status including income, size of the family, and age of family members, and are adjusted annual for inflation (United States Census Bureau, n.d.). The Census Bureau also recognizes the complexities in measuring poverty and notes that their data are intended to be used for statistical analysis and not as a determination of a family’s needs. Consequently, in order to compare poverty levels consistently, it is necessary to use the Census Bureau’s information.

Table 1. Poverty Thresholds for 2014 by Size of Family and Number of Related Children Under 18 Years

The Census Bureau utilizes several surveys that measure poverty based on national trends, state and municipality trends, trends over time, or a comparison of trends using a snapshot.

In order to review the history of poverty over time, the Annual Social and Economic Supplement (ASEC) to the Current Population Survey (CPS) will be utilized. According to the Census Bureau (n.d.), the ASEC questionnaire is conducted annually, in conjunction with the CPS, during the months of February, March, and April with a sample of about 100,000 addresses per year. The survey contains national estimates of income and poverty rates and collects information regarding income including noncash benefits such as subsidized school lunches. This is the only survey that provides data beginning in 1959 and therefore can be utilized for historical

comparison.

Research

Poverty has existed throughout American history, however, the government began documenting facts regarding poverty in the late 1950s. “A surprising fact about poverty in the United States is that it declined steeply throughout the 1960s and then increased in an uneven pattern thereafter, never again equaling its low point during the early 1970s” (Haskins & Sawhill, 2007). Although the decline cannot be explained for the general population, the decline in the elderly population can be attributed to an increase in Social Security benefits. It is no surprise that increasing income will decrease poverty, however, Americans do not generally support the taxation of one group in order to support another group (Haskins & Sawhill, 2007). In 1959, the Census Bureau began measuring poverty by using a set of money income thresholds that vary by family size and composition and issuing a chart of minimum income requirements (see Table 2). If a family's total income is less than the family's threshold, then that family and every individual in it is considered in poverty (United States Census Bureau, n.d.).
Based on the definition developed by the U.S. Census Bureau, the average percent of the American population that falls below the poverty level and below 125% of the poverty level was at its highest in the 1960s. Consistent with the comment made by Haskins and Sawhill (2007), there was a decline in the 1970s. Conversely, there were similar averages in the 2000s, though the past five years have seen a slight increase (see Figure 1).
Absent of the 1960s, the level of poverty has increased by 3.1% from the lowest percentage of 11.8 in the 1970s. Interestingly, the average percent of population between 100% and 125% of the poverty level has remained stable. Without further research of this topic, it is difficult to determine which causes affect this portion of the population differently, yet the results may contribute to the explanation of the level of poverty in general.
In order to find the greatest areas of need, the next steps should include data by region. The ASEC divides the country into four regions: Northeast, Midwest, South, and West (see Figure 2). The data shows that the Northeast has both the lowest population (55 million) along with the lowest proportion of people in poverty (15%). In contrast, the South has the highest population (118 million) along with the highest proportion of people in poverty (42%). Yet, the South holds a total of 37% of the total population giving the region a higher share of families in poverty.
To combat the rise of poverty, it is essential to identify the causes of poverty or explanations for the shortage of family resources.

These can include changes in the economy, changes in family composition (Top 5 Causes of Poverty - The Borgen Project, 2013; Iceland, 2012; Haskins and Sawhill, 2007), changes in government spending (Top 5 Causes of Poverty - The Borgen Project, 2013; Haskins and Sawhill, 2007), social stratification (Iceland, 2012), remoteness, education (Ahmed, Hill, Smith, & Frankenberger, 2007), and even extreme weather events (McGrath, 2013). By researching these changes in history coupled with the respective regions of the country, it can narrow the scope of solutions needed and assist with resources when

necessary.
Limitations

Both the Census Bureau and HHS provide guidelines to monetarily define the levels of poverty for a person or family. This practice is a one-sided measurement that only considers a family’s income and disregards their expenses. If poverty is defined as having the lack of necessary means for survival, then according to Maslow (1943), our physiological needs, e.g. shelter, food, water, air, are a person’s basic needs. Yet, there is no minimum standards of shelter or food and water intake. Therefore, expenses cannot be standardized.
The poverty guidelines developed by the Census Bureau is limited to national trend data. The information is not adjusted for state or local fluctuations in cost of living. Thus, an annual income of $12,071 in a rural location will not equate to the same buying power in a major metropolitan area. Regionalized information is necessary in order to develop solutions for poverty stricken areas such as the South.

Conclusion

Poverty is a societal issue that persists in our country. The problems begin with “structural factors, such as the way we understand and define poverty, the inherent features of our economic system that produce income inequality, social inequities, and our policy responses to these problems” (Iceland, 2012). Due to our limitations of describing the problem, we have not devised a set of criteria that truly delineates the information we seek. Hence, we are restricted to the data that currently exist and are obligated to resolve the problem based on these findings.
The information presented by the U.S. Census Bureau shows that the number of people in poverty fluctuates throughout history and could be based on a number of independent variables. Global societal problems should be the responsibility of the government and further research along with past events can prepare us for upcoming extremes that can be alleviated by preparing our resources. Predictions about the future of poverty are unknown, therefore, concentration on the present condition is vital.