So What do we look So What do we look likelike

Who are the Poor?Who are the Poor?

In 2010, 15.1 percent of all In 2010, 15.1 percent of all persons lived in poverty. persons lived in poverty. Approximately 47 million or 1 in 7Approximately 47 million or 1 in 7

But number of “food insecure” But number of “food insecure” has risen to 56 Million has risen to 56 Million

Number of uninsured 50.7 millionNumber of uninsured 50.7 million New Data U.S. Census.govNew Data U.S. Census.gov New Poverty since the recession......

So how do we measure So how do we measure povertypoverty

relative versus absoluterelative versus absolute When a low cost food budget cost When a low cost food budget cost

more than one third monthly more than one third monthly income for a family income for a family

““thrifty food plan” updated each thrifty food plan” updated each year using the consumer price year using the consumer price indexindex

What determines poverty…What determines poverty…Age is a major factorAge is a major factor

16.4 million or 36 percent of those in poverty 16.4 million or 36 percent of those in poverty are children under 18 years of age. are children under 18 years of age. Source: Source: http://www.npc.umich.edu/poverty/#2http://www.npc.umich.edu/poverty/#2

Kids represent 36 percent of those in povertyKids represent 36 percent of those in poverty One in five kids are poor in the U.S. (22%)One in five kids are poor in the U.S. (22%) Children 18 and under in Arkansas 29%Children 18 and under in Arkansas 29% Over 65, social security is the safety net [??]Over 65, social security is the safety net [??]

Race is a major factorRace is a major factor Although most poor persons are white – the within group Although most poor persons are white – the within group

proportions are much higher for minoritiesproportions are much higher for minorities White households have 10 times the wealth of black familiesWhite households have 10 times the wealth of black families Poverty rates for blacks and Hispanics greatly exceed the Poverty rates for blacks and Hispanics greatly exceed the

national average. In 2010, 27.4 percent of blacks and 26.6 national average. In 2010, 27.4 percent of blacks and 26.6 percent of Hispanics were poor, compared to 9.9 percent of percent of Hispanics were poor, compared to 9.9 percent of non-Hispanic whites and 12.1 percent of Asians.non-Hispanic whites and 12.1 percent of Asians.

9.9 % Whites9.9 % Whites 27 % Blacks27 % Blacks 26.6 % Hispanics26.6 % Hispanics 12.1 % Asians12.1 % Asians 23% Other23% Other Source: National Poverty Center Source: National Poverty Center

http://npc.umich.edu/poverty/http://npc.umich.edu/poverty/

Education is a factor Education is a factor poverty by race and poverty by race and educationeducation

EducationEducation All All RacesRaces WhiteWhite

African African AmericaAmerica

nnHispanicHispanic

No No diplomadiploma 22.422.4 19.819.8 35.635.6 27.027.0

High High School School

Graduate Graduate 12.012.0 10.010.0 22.622.6 16.216.2

Some Some collegecollege 8.28.2 7.07.0 14.714.7 10.110.1

College College degreedegree

(or more) (or more)3.93.9 3.63.6 5.65.6 6.06.0

Arkansas Educational Arkansas Educational BreakdownBreakdown

Not a high school graduate Percent 17% 15% 16% 14% 15%

High school diploma or GED Percent 58% 58% 57% 57% 55%

Associate's degree Percent 6% 7% 8% 8% 8%

Bachelor's degree Percent 14% 14% 13% 14% 15%

Graduate degree Percent 6% 6% 7% 7% 7%

Percent of college students in Arkansas with debt: 55%

•

Gender is a factorGender is a factor

female headed households Feminization of female headed households Feminization of Poverty – women and girls constitute a Poverty – women and girls constitute a disproportionate share of the poor. disproportionate share of the poor.

Due to divorce, unwed mothers, lower wages Due to divorce, unwed mothers, lower wages than menthan men

Older women are twice as likely to be poor Older women are twice as likely to be poor than older menthan older men

Households…. Households…. 44 44 percent female headed versus 15.8 male headedpercent female headed versus 15.8 male headed 6.2 percent for married families6.2 percent for married families

Geography is a factorGeography is a factor

Rural versus UrbanRural versus Urban Southern region has highest rates Southern region has highest rates

with more rural areas – some with more rural areas – some individual metropolitan areas individual metropolitan areas have high rateshave high rates

"In 1960, about one in four "In 1960, about one in four renters paid more than 30 renters paid more than 30 percent of income for housing. percent of income for housing. Today, one in two are cost Today, one in two are cost burdened," according to the burdened," according to the study, study, America's Rental Housing..

Other influencesOther influences

If we start with the 47 millionIf we start with the 47 million Working poor – an additional 10.8 million – Working poor – an additional 10.8 million –

those who earn up to 125% poverty = 57.8 those who earn up to 125% poverty = 57.8 MillionMillion

If we use a more realistic measure (“working If we use a more realistic measure (“working class”) of 155% poverty (e.g., 31,000 for a class”) of 155% poverty (e.g., 31,000 for a family of 4),the total is family of 4),the total is 1818 million million

Subtotal of the poor = 65.8Subtotal of the poor = 65.8 million million Add those lifted out of poverty via social Add those lifted out of poverty via social

security benefits (16 million)security benefits (16 million) Subtotal of poor = 82 Million Subtotal of poor = 82 Million

(approximately 1 in 4 Americans are poor or at (approximately 1 in 4 Americans are poor or at risk of poverty) risk of poverty)

Meet the Smiths Meet the Smiths

What would life be like in What would life be like in northwest Arkansas for a family of northwest Arkansas for a family of 4 with two minimum wage 4 with two minimum wage earners? Official poverty earners? Official poverty guideline is $22, 050guideline is $22, 050

Working families in Working families in ArkansasArkansas

A full time minimum wage worker A full time minimum wage worker in Arkansas working 40 hours a in Arkansas working 40 hours a week, 52 weeks a year, will earn week, 52 weeks a year, will earn $290.00$290.00 per week, or per week, or $15,080.00$15,080.00 per year. The per year. The national poverty line for a family national poverty line for a family unit consisting of two people is unit consisting of two people is $14,570/year. $14,570/year.

Roberto, Alice.. and Roberto, Alice.. and two kids –two kids – Both work $30,160 Both work $30,160

- Approximately $6937 in Taxes Approximately $6937 in Taxes - [federal, state, Medicare and OASDI][federal, state, Medicare and OASDI]

- Net Income to work with is Net Income to work with is - $23, 223$23, 223

- Divided by 12 = $1935.25Divided by 12 = $1935.25

$ 1935 to work with……..$ 1935 to work with……..

Rent: Rent: Utilities: Utilities: Car Payment:Car Payment: Child careChild care Groceries:Groceries: Insurance: Insurance: Clothing:Clothing: Medicine: Medicine: Entertainment: Entertainment:

Living wages are those wages Living wages are those wages necessary to meet minimum necessary to meet minimum monthly expenses. monthly expenses.

Arkansas advocates for Children and Arkansas advocates for Children and Families argues that Roberto and Families argues that Roberto and Alice would need to earn Alice would need to earn approximately $13.70 per hour in approximately $13.70 per hour in order to meet their family’s order to meet their family’s basicbasic needsneeds