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Ear to the Ground

Introducing the ‘Near Poor’

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Posted on Nov 19, 2011
Packmatt (CC-BY)

The Census Bureau published a new measure of poverty this month to more carefully count those Americans who are barely getting by. The new income category—“near poor”—is up for grabs to those in the OWS movement, who could use it to better tell their alternative story of broad American hardship.

Researchers counted 51 million Americans whose incomes are less than 50 percent above the official poverty threshold, which stood at $22,314 a year for a family of four in 2010.

Studied by the bureau at the request of The New York Times, the size of the new category shocked researchers. “These numbers are higher than we anticipated,” said one of the bureau’s poverty statisticians. “There are more people struggling than the official numbers show.” —ARK

The New York Times:

When the Census Bureau this month released a new measure of poverty, meant to better count disposable income, it began altering the portrait of national need. Perhaps the most startling differences between the old measure and the new involves data the government has not yet published, showing 51 million people with incomes less than 50 percent above the poverty line. That number of Americans is 76 percent higher than the official account, published in September. All told, that places 100 million people — one in three Americans — either in poverty or in the fretful zone just above it.

After a lost decade of flat wages and the worst downturn since the Great Depression, the findings can be thought of as putting numbers to the bleak national mood — quantifying the expressions of unease erupting in protests and political swings. They convey levels of economic stress sharply felt but until now hard to measure.

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By noodles, November 28, 2011 at 3:23 pm Link to this comment
(Unregistered commenter)

...we have only ourselves to blame…

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By Marian Griffith, November 21, 2011 at 12:04 pm Link to this comment
(Unregistered commenter)

@Charlie1877

Poverty is very hard to define, and even harder to quantify. Generally it consists of two parts.
The first, and easiest, is the minimum needed for survival. That is food, housing and clothing plus minimal healthcare to ensure trivial ailments do not become deadly.
This means that if you can not afford sufficient food or do not have access to clean drinking water you are, by definition, poor. Same with if you can not afford a form of housing or if you do not have a way to get adequate clothing.
Even this fairly self evident definition already is full of words like sufficient and adequate, leaving it open to debate.

Things get worse with the second part of the definition, which is less universally (but still widely) accepted: people are -effectively poor- if they can not afford the minimum standards for participate in a meaningful way in society. Somebody who lives in a squat on dog food and weas thrift store cast offs is not poor in the absolute sense, but they are still effectively poor in the sense that they are locked out of society. They are trapped at that poverty line with no way to improve their situation. The best thing that can be said of them is that they will only slowly starve to death and will probably not die of exposure. They are not living as part of society or economicy and as such can be considered to be poor.
What exactly is the bottom line where poverty ceases to be a trap and becomes a state that somebody can fight him- or herself out of depends on many factors, including social environment (standards for students in this respect are quite different from that of, say, a family of four). Deciding what is needed to particapte in society is difficult (a car is often a must in the USA while in most European countries it is a luxury. Internet access and electricity are quickly rising on the scale of necessity due to more and more of socio-economic activity transfering to the internet).

There is actually at third layer but that one is highly contested, namely the poverty created by not being able to meet social expectations. This is poverty relative to social peers (which means that a millionair can be poor relative to billionaires, even though they are not remotely poor by the other standards).

Regarding the figures presented by the census bureau, this entirely depends on what definitions they use to decide what income level is the poverty line. Usually this involves a standardised ‘cost of living’ package that consists of the necessities for survival plus some or all of the things that determine effective poverty. This is then averaged for the country (meaning that in some regions the poverty line would be way higher than it should be while in other areas it is too low because the local costs of living are much higher). What exactly is put into that shopping basket depends on tradition and ideology of the ones defining it. A die-hard Randian like Ron Paul would probably consider even the subsistence levels luxury and question the validity of even the concept of a poverty line, while Swedish social-democrats would include the entire effective poverty shopping basket and move into the relative poverty territory.

Without better information that underpins the numbers here, both the old and the 50pct hike proposed, there is no telling how realistic this outcome is.

One thing is sure though, that if the proposed raising of the poverty line is warranted it means that the average american lives at the poverty line, which says a lot of things about how bad the socio-economic situation as become (note it does not neccesarily mean that half the americans are living in poverty. It can also mean that for every billionair there is a family that tries to survive on a third world income)

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By les pauvres, November 21, 2011 at 8:44 am Link to this comment
(Unregistered commenter)

What was inadmissable or off-topic about my comment ?


I think the comment and link to HERMES was ridiculous . . . .

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By Lafayette, November 21, 2011 at 2:10 am Link to this comment

UNDO THE DAMAGE DONE

grok: corporate party electoral politics is a dead, decaying corpse. Get over it.

In fact, I must agree with you. Let’s hope, after its last SubPrime Debacle, that the handwriting on the wall announcing its demise is true.

Politics - like fads - happen in waves, though at longer intervals. Reagan came in upon the demise of the Great Society. Since the 1980s America has embarked upon Ayn-Randian individualist politics (“what’s in it for me, me, me”) which favored the few over the better good of the many.

Let’s hope, after all the false hopes (Clinton, for instance), that the Ayn-Randian Era of political excess on behalf of a select minority is coming to its well-deserved end. It is time, 30 years on, and the hurt in America is widespread.

The Great Society was a decent egalitarian idea, even if it was empty of political implementation. We must move on to more Progressive Values that better the lives of all Americans and not just a select class of “plutocrats”.

MY POINT

That objective is a long row to hoe, so let’s start weeding out those elements that have prevented egalitarian policies to take root and flourish. (Like a Public Option Health Care system in a country that so badly needs one.)

And we know who those scoundrels in Congress are because they are too brazen and too ignorant to hide their misdeeds.

We must elect more progressive candidates to both Chambers of Congress in order to undertake the reforms necessary - which should start immediately with Income Unfairness. For that to happen, we must touch a very sensitive nerve, that of marginal and capital gains taxation. They both must rise to be placed back at levels they existed before Reckless Ronnie occupied the Oval Office. (See info-graphic here.)

Which also means we need a simple and clear Progressive Agenda upon which grassroots America can hang their hopes and desires for a better way-of-life.

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By grokker, November 20, 2011 at 6:03 pm Link to this comment

IMax, I never suggested that a coup was desirable or necessary. All I’m suggesting is that electoral politics as it is today with one two-headed corporate party is slow, torturous death with an end result much as you described in your comment.

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By Rodney, November 20, 2011 at 4:46 pm Link to this comment
(Unregistered commenter)

There is no such thing as nearly poor. Your ass is
poor. The Republicans have spent the last thirty
years turning middle class into poor and poor into
third world. They are now trying to ensure that all
government workers except themselves are poor. They
hate the school teachers, and have for years fooled
the police and fireman into voting for them. The
police and firemen finally woke up and realized who
were the people behind taking away their collective
bargaining. The Republicans who came into office
layed off thousands of police and firemen while
giving tax breaks to millionaires and corporations.
They have come to take their country back. Back from
the working class in order to return it to the slave
master.

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By IMax, November 20, 2011 at 4:32 pm Link to this comment

grokker,

I believe your basic premise of throwing a teenage tantrum and breaking everything will cause countless millions of living and breathing human-beings to suffer horribly all over the globe.

I’d be willing to wager that no more than 1% of Americans (roughly 3 million) would subscribe to anything like what you desire. - NEVER happen is right! - but I’ll defend your right to voice your opinion.

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By Lafayette, November 20, 2011 at 2:55 pm Link to this comment

All told, that places 100 million people — one in three Americans — either in poverty or in the fretful zone just above it.

The above intimates that one-third of the American population is either below the poverty line or also above it, but fretfully - whatever fretfully means.

I find that very, very difficult to believe.

A Census Bureau report last year said this:   

The nation’s official poverty rate in 2010 was 15.1 percent, up from 14.3 percent in 2009 ? the third consecutive annual increase in the poverty rate. There were 46.2 million people in poverty in 2010, up from 43.6 million in 2009 ? the fourth consecutive annual increase and the largest number in the 52 years for which poverty estimates have been published.

So there are another 60 million living “fretfully”? No, that doesn’t seem correct. It is much to large a number.

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By felicity, November 20, 2011 at 1:09 pm Link to this comment

Payson - And the prices of food and fuel are not
included in the Consumer Price Index - too volatile? -
and not included, the CPI will indicate a much smaller
increase, which will then be the excuse for labor not
getting a cost-of-living raise.  There’s always a
scurrilous method to their madness. 

The airy-fairy ‘middle-class’ category, however, is at
least not as bad as the ‘working poor’ category - one
labors his entire adult life at wages which make him
poor? What’s wrong with this picture.

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By Les Pauvres, November 20, 2011 at 12:46 pm Link to this comment
(Unregistered commenter)

And now allow ME to introduce you to the near poor. . .  Find the nearest Good Will Store or Salvation Army Family Store or Value Village Thrift Store etc. and you will see a packed parking lot.  Enter any respective thrift store and it will be teaming with customers scavenging the tons of used and even NEW stuff continually being replenished by the workers thanks to the ‘wealthy peoples’ donations.

Because there is an over-abundance of ‘cheap’ merchandise being produced and transported across oceans even the Big Box stores are donating to the thrift stores.  Anything and everything can be found if a thrifty shopper searches high and wide.

It is effectively an alternative economy and it answers some of the issues related to recycling.

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By Payson, November 20, 2011 at 12:11 pm Link to this comment

Americans have been indoctrinated into the myth of the great “middle class”
with its “American Dream” and endless opportunities if you just work hard
enough.  Any American with a full-time job, regardless of their income, will
profess to be middle class.  Only in America can you profess to be exceptional
without any effort or middle class when you are actually poor.

Yes, compared to (pick your choice of supposedly worse off far away country),
America’s “poor” or “near poor” seem better off.  However, if you are poor and
live in America, you are increasingly at the mercy of political and corporate
efforts to undermine or eradicate American policies that created our
diminishing middle class in the first place.

If your income is $23,000 per year, or even quite a bit more, it isn’t as if that is
all cash you can put away for hard times.  The cost of living, even very
modestly, eats up that level of income quickly.  The cost of fuel, rent, food, etc.
affects the “middle class” greatly.

I am a public school teacher in a big city, so I guess if someone wants to label
me, “near poor” is far more accurate than “middle class.”  I managed to avoid
student debt, but the cost of living in a tiny apartment within subway distance
of work and maintaining an austere existence wipes out my earnings every pay
day.  America’s “exceptionalism” has resulted in the most fitting moniker for an
American with a full-time job and ability to avoid homelessness: “lucky.”

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By bpawk, November 20, 2011 at 11:25 am Link to this comment

The majority of Americans won’t get involved in protests even though they should - after having lost their jobs, house, maybe their marriage, their way of life etc. because they are taught to celebrate other Americans’ success - but you have to know how a lot of people get successful in America - it is by exploiting others, bribing government officials who then make more laws to favour the rich and so it goes. Why identify with the rich when you’re poor or close to it? Yet that’s why there’s apathy - the poor and unemployed blame themselves. The poor also fear the law too as the police or FBI or CIA will come after those who ‘step out of line’ and protest. It reminds of the Buffalo Springfield song ‘For What It’s Worth’ ...
“Paranoia strikes deep
Into your life it will creep
It starts when you’re always afraid
You step out of line, the man come and take you away”

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By mrfreeze, November 20, 2011 at 10:56 am Link to this comment

Charlie1877 - Written like a true “economist.” Sure, you’re right, Americans are, compared to Somalis, Bangladeshis, Tibetans and many other people, “wealthy.”

Here’s the problem: once the income standards of Americans continue to fall lower than they are (and have been for the last 30 years), purchasing power will decay, demand will drop and there will come a time when there will be little to no rejuvenation of our infrastructures and vital systems.

Sure, corporations will continue to register “growth” because they can produce cheap shit off-shore and sell that crap to people somewhere else in the world….they can then influence government so as to pay little in taxes for the process thus increasing the GDP without actually contributing anything to domestic issues. Ultimately, this will lead to regular Americans making even less….

So, although you’re fundamentally right…...you’re also ignoring the fatal problem with the “race-to-the-bottom” economic trajectory we are on.

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By prisnersdilema, November 20, 2011 at 10:47 am Link to this comment

Take a long hard look at a preview of Americas future….

The political system of this country is a failure, the Republican party and the corrupt
Democratic party, have done this…Now the Republican party in disguise as the
Teaparty, wants to take social security, and your pension…the supercommitte is just
another disguise, to hide legislation that will implement a corporate wish list of
larcenies….

Suppression and repression, and all those laws that were put place to thwart terrorism in
this country, will be revealed in their true purpose, to create a police state, bent on the
continued destruction of this country for the corporate elite.

There will never be any reform under our present political system, only more pain, and
lies and serfdom for all.

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By grokker, November 20, 2011 at 10:23 am Link to this comment

IMax says: Occupy Congress
Unless you are talking about OWS staging a complete coup and replacing the system with something entirely new(which will never happen), corporate party electoral politics is a dead, decaying corpse. Get over it.

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By Charlie1877, November 20, 2011 at 9:17 am Link to this comment

I bet if you calculate “the poors” income @ 75% of the official rate it would go even
higher. Maybe we should should conclude that the poor aren’t that poor and the rate
should be lower. The official rate is about 2 thousand a month, not including the food
stamps (which can be sold for at least 50 cents on the dollar) not to mention paying no
taxes and receiving an earned income tax credit.

The average income in the us is 31,000 so yes adding 11000 to the 22000 poverty rate
makes average income POOR.  What this means, is that the poor do pretty well here,
making 3 times the average household worldwide.

We live in the most peaceful and prosperous time in human history, stop complaining.

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By IMax, November 20, 2011 at 5:28 am Link to this comment

Occupying Wall Street, I believe, misses the point. Little to no change will be in our future by ‘Occupying’ streets and parks.

Peter Orzag, the last OMB Director, moved immediately to making his fortune at CitiBank.

Occupy Congress!

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By GW=MCHammered, November 20, 2011 at 4:20 am Link to this comment
(Unregistered commenter)

Since 60 Minutes exposed Congress members’ so-called ‘legal’ insider trading, perhaps our public figures will help their growing Working Poor constituents by sharing insider info and profits. Maybe they could be forced to share. What say you lawyers? Because it sure doesn’t pay to work here anymore.

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By Marian Griffith, November 20, 2011 at 3:42 am Link to this comment
(Unregistered commenter)

So .. one in three americans is not either poor outright or knows they are put one stumble away from it.
Small wonder the mood in the country is so revolutionary (and not in the good sense).

It seems obvious that if Obama and the democrats want to win(*) the next election and regain their relevance, they will have to do more than mouth platitudes and offer empty shell programs.
Because unless they regain their social conscience (what little there ever was in -any- American political party) they will become known as ‘the other half of the Republicans’.

(* They may still win it even without reform, but it would be a meaningless victory as only a small minority of the voters would actually consider the next president ‘his’ or ‘hers’. If 60pct of the voters stays home then it matters not who wins as he or she will not represent the population anymore.)

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By Outraged, November 19, 2011 at 5:42 pm Link to this comment

And everybody knows the “near poor” are simply THE POOR
by another name.

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