The most common measure of
poverty in the United States is the "
poverty line" set by the
U.S. government. This measure recognizes poverty as a lack of those goods and services commonly taken for granted by members of mainstream society.
[1] The official threshold is adjusted for inflation using the consumer price index. Poverty in the United States is cyclical in nature with roughly 12% to 16% living below the federal poverty line at any given point in time, and roughly 40% falling below the poverty line at some time within a 10 year time span.
[2] Most Americans (58.5%) will spend at least one year below the poverty line at some point between ages 25 and 75.
[3] While there remains some controversy over whether the official poverty threshold over- or understates poverty, the United States has some of the highest absolute and relative pre- and post-transfer poverty rates in the developed world.
[4][5] Overall, the U.S. ranks 12
th on the
Human Development Index.
[6]Those under the age of 18 were the most likely to be impoverished. In 2006 the poverty rate for minors in the United States was the highest in the industrialized world, with 21.9% of all minors and 30% of African American minors living below the poverty threshold.[7] Moreover, the standard of living for those in the bottom 10% was lower in the U.S. than other developed nations except the United Kingdom, which has the lowest standard of living for impoverished children in the developed world.[8] According to a 2008 report released by the Carsey Institute at the University of New Hampshire, on average, rates of child poverty are persistently higher in rural parts of the country relative to suburban areas and share similar rates with many central cities.[9][10]
Measures of poverty can be either absolute or relative.
There are two basic versions of the federal poverty measure the poverty thresholds (which are the primary version) and the poverty guidelines. The Census Bureau issues the poverty thresholds, which are generally used for statistical purposes—for example, to estimate the number of people in poverty nationwide each year and classify them by type of residence, race, and other social, economic, and demographic characteristics. The Department of Health and Human Services issues the poverty guidelines for administrative purposes—for instance, to determine whether a person or family is eligible for assistance through various federal programs.[12]
