Tuesday, November 8, 2011

New Numbers Show Poverty at New High

The US Census Bureau has released new figures relating to the US poverty rate. The numbers are the result of a new system that takes into account rising medical costs and other expenses. This includes out of pocket medical care, child care and commuting. The figures also take into account non-cash government aid when calculating income, such as food stanps and tax credits.

The results show a record number of Americans living in poverty—16% or 49.1 million.
Americans 65 or older had the largest increases in poverty under the new experimental formula. They nearly doubled to 15.9%, or 1 in 6. This is because rising Medcare premiums, deductibles and expenses for prescriptiion drugs are not considered in the official rate.

And for the first time, the number of Hispanics living in poverty surpassed the number of African Americans, 28.2% to 25.4%.

Economists have long criticized the official poverty rate as inadequate, but they differ widely on better ways to calculate it. This experimental measure is based partly on recommendations made by the National Academy of Sciences.

For more information go to www.census.gov.

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