Thursday, November 02, 2006

Should the Poverty Line Be Raised?

In the US today, to be declared as in poverty, your income must be $16,660 or less. The Census Bureau is now looking to raise that mark from $16,660 to $19,500.
Many economists have a problem with this. The believe that the poverty line should be looking at consumption rather then income. Often times, people living in poverty are able to consume good much more expensive then there actual income. They are able to do this because of welfare and other beneficial programs. Often incomes' of retirees would be viewed as under the pverty level. They are able to still live comfortablly because many of their crucial materials such as cars and home are already paid for. Studies show that of the 8.7 million Americans, only 3.7% actually live in harsh conditions that should be viewed as in poverty.

1 comment:

chris carter said...

I do think the poverty line should be raised also. People who are on welfare do not necessarily live in poverty. Sometimes people go on welfare because they have difficulty raising their family.