Chapter 13.3

PovertyCHAPTER 13.3

By: Alyssa Cress

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According to the government, a poor family is one whose total income is less than the amount required to satisfy the family’s minimum needs. The Census Bureau determines the income level, known as the poverty threshold, needed to meet the minimum needs of a family. The poverty threshold, or poverty line varies with the size of the family.

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Poverty Threshold: the income level below which income is insufficient to support a family or household.

In 2009, over 43 million people in the United States lived with incomes below the poverty level, representing 14.3 percent of the U.S. population and reaching the highest rate since 1994.1

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The poverty rate is used to help the government help consider to be poor and what factors seem to contribute to poverty. And the government uses race and ethnic origin, type of family, age, and residence to consider what factors play into poverty rate.

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Poverty Rate: is the percentage of people who live in household with income below the official poverty threshold. 3

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http://www.youtube.com/watch?v=QhazUP4-ink

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Location and climate isn’t something thought about with poverty, but it does factor into the equation. For example in local farm communities where agriculture makes or breaks a community, if there isn’t enough rain, it can add to an economical downfall. Raising the poverty level.

The U.S has millions of poor people, but it also has one of the highest GDP’s and standards of living in the world. Some may ask how can those go hand in hand? Well its because how the market distributes income.

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Income Distribution: how the nations total income is distributed among it’s population.Food Stamps: government-issued coupons that recipients exchange for food.Lorenz Curve- this graph illustrates the distribution of income in the economy.

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