Poverty in the US: Causes and Measures

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Table of Contents

Introduction
Measures of Poverty
Causes of Poverty
Fight against Poverty
Conclusion
References

Introduction

The existence of poverty in the United States (U.S.) is considered a paradox. The U.S. is one of the world’s richest countries and is regarded as the only economic superpower. Despite such lofty distinctions, poverty in the U.S. exists. The government has recognized this reality and is doing measures to reduce the figures. In addition, the entities in the country work hand in hand to ensure that poverty is reduced. Programs and projects are created to address the specific needs of poor communities. The fight against poverty is an unending task. It requires policies, cooperation, and sustenance.

Poverty in the U.S. is referred to a household that accumulates income below the poverty level (U.S. Census, 2003). In essence, poverty is a condition that deprives individuals of acquiring the necessities required to meet the minimum standard of well-being and life. The government has set a poverty line that measures the capacity of families to satisfy their daily needs. This line is equated with other economic indicators such as price and inflation. The measurement determined by the government is equal to three times the annual cost of a nutritionally sufficient diet.

At present, the poverty rate in the U.S. is estimated at approximately 12.3%. This means that 36.5 million Americans are classified as poor. But the parameters used by the United Nations measure poverty in the U.S. at around 17%. The incidence of poverty among individuals below 18 years old is high compared with individuals who are 18 to 64 years old. In 2006, the poverty rates for the respective age groups are 17.4% and 10.8% (CIA Factbook, 2007).

Measures of Poverty

The government uses three measures to determine the poverty level. The Census Bureau is tasked to provide the poverty threshold. These figures are used for statistical analysis. Usually, the Bureau uses the data to classify the clusters and areas where poverty exists. Moreover, the Department of Health and Human Services handles the poverty figures for administrative purposes (Health and Human Services, 2007). The agency determines the individuals in dire need of assistance from the government. Both offices work to ascertain the accuracy of the information and the extent of aid needed.

Another measure of poverty is used by the Office of Management and Budget. The agency derives its figures from the “Orshansky Poverty Threshold”. This was developed by Mollie Orshansky who once worked for the Social Security Administration (Social Security Agency, 2007). The data is used to determine the budget to be allocated to fight poverty. The Department of Agriculture also has its version of the poverty level. The agency develops the economy food plan which determines the least costly food plans. This is vital because it is used as the basis for food creation.

Food security is a major issue attached to poverty. In 2002, the U.S. stated that 89% of the population has full access to food. The other households were determined to have inconsistent food sources throughout the year. The incidence of poverty in the U.S. is at times cyclical. Some families earn income only at certain periods. This means that the distribution of the resources is an imbalance to satisfy the needs of the families.

Causes of Poverty

There are several reasons why poverty exists. The most common cause is the individual’s lack of skills to acquire employment. An individual must have a job to earn. Aside from the skills, educational attainment is another major consideration. Education is often a requirement when looking for employment. In addition, disability can also cause an individual to experience poverty. Disabled individuals are more often segregated from the physically capable. This form of social bias deprives physically impaired individuals of acquiring the same privileges enjoyed by others.

One of the most talked-about issues in the U.S. is the prevalence of illegal immigration (Rector, 2006). For some foreigners, U.S. is viewed as the “land of milk honey”. Hence several foreign individuals try to transfer to the U.S. hoping to uplift their lives. Unfortunately, this has become a big problem for the government. The increase in population has also stretched the budget requirements needed to address poverty. Some foreigners are perceived to take away the services provided by the government to the locals. Instead of changing their statuses, these immigrants worsen their already poor state.

The social condition is also linked to the existence of poverty. Communities with high crime rates are usually occupied by poor families. Crime is considered an option for individuals who find it difficult to earn in conventional ways (Harris, 2006). Discrimination is another social issue that causes poverty. Preference of race and religion can often determine the jobs that most individuals try to acquire.

Fight against Poverty

Solving poverty requires solid programs and sustained efforts. One of the most used methods to solve poverty is to increase the wages received by individuals. This will expand their buying power and allow households to purchase their necessities. In addition, the government can also reduce the tax rates on households receiving low income. The government needs to sacrifice the income from taxes and directly give the benefits to earners. Aside from the income tax, the government can also reduce the tax imposed on basic goods and services that are usually acquired by low-earning households.

The government has to extend its social services and focus on these poor individuals. Provision of necessities such as free education and healthcare are musts (Center for American Progress, 2007). Allocating a huge chunk of the budget on poverty alleviation has to be done. The government can temporarily alter its funds for non-priorities to fights against poverty. The government needs to address fiscal balance to ensure that poverty is addressed. It has to be noted that resources are needs to ensure that social services are delivered.

Moreover, the government has to start pushing on job creation. It has to start by making policies that provide incentives for companies that will expand in depressed areas. The government can facilitate industrial growth through the provision of infrastructures and the expansion of communication arteries. Communities must be developed and made accessible to these firms. Employing these poor individuals is a good start to address poverty. This will allow these households to participate in the actual economic process.

Aside from fiscal policies, there are certain monetary policies that the government can pursue. The reduction of the interest of government loans is a good option. This will allow poor individuals to have access to government financing. Apart from being employees, poor households can plan of being entrepreneurs. Although the government is not advised to intervene on prices, it can provide measures to limit the exposure of poor households to high-priced commodities (Walls, 2007). The government can provide its goods that can compete against commercially produced products.

Conclusion

Poverty is undeniably a concern for the U.S. Despite the daunting task head, poverty can be reduced and eventually eliminated. Several strategies can be manifested. But these strategies have to revolve around the social, political, and economic aspects of the country. The social issues involve the elimination of prejudices related to race and religion. All American has to gain equal access to basic services regardless of ethnic origin. In the economic aspect, the government has to provide both fiscal and monetary measures to strengthen the distribution of wealth.

Politically, leaders have to manifest their full power to ensure that equality is present in their respective jurisdictions. But the government needs help in fighting against poverty. The private sector has to continually expand and create more employment opportunities. In addition, all Americans have to cooperate with these policies. The synergy of these aspects is needed to finally end the incidence of poverty in the U.S.

References

Harris, P., (2006), The Observer, “37 million poor hidden in the land of plenty” Web.
Rector, R.E., (2006), The Heritage Foundation, “Importing Poverty: Immigration and Poverty in the United States: A Book of Charts,” Web.
Walls, D., (2007), Models of Poverty and Planned Changed, Web.
Center for American Progress, (2007), From poverty to prosperity: A National strategy to cut poverty in half, Web.
Central Intelligence Agency (CIA) Factbook, (2007),U.S. Poverty, Web.
Health and Human Services, (2007), Poverty Guidelines, Research, and Measurement, Web.
Social Security Administration, (2007), Mollie Orshansky, Web.
U.S. Census Bureau, (2003), Definition of Poverty, Web.

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