Poverty at 11-Year High - And Still Rising

(CBS)  The poverty rate in the United States hit 13.2 percent last year, according to a study released Thursday - up from 12.5 percent the previous year.

That's an 11-year high, and it means that nearly 40 million Americans were living below the poverty line, the equivalent of a family of four living on about $22,000 or less a year. CBS News correspondent Randall Pinkston has more on the stark reality behind the numbers.

In Wesson, Miss., Denise Guidry's life is upside-down. Once a stay-at-home mom, she's now struggling to pay the bills after her husband lost his job paying six figures as a pipeline worker. Now, he looks for work out of state.

"I tried to take up the slack which was very hard," Guidry said. "I'm working three jobs and I can't make it."

Trying to avoid foreclosure, they're renting out their five-bedroom home and living in an RV with five children. The most difficult part of the adjustment has been being apart from her children, Guidry said, sobbing.

Poverty: The Faces behind the Numbers

Eric Hill moved from North Carolina to New York last year thinking he could find work as a bricklayer.

"Everyone has an ambition to have something in life and to be able to support themselves," he said.

But his dream went nowhere, sending Hill and his family of five into shelters and soup kitchens.

"It hurts. It hurts to want to have something more than what you have," he said.

Two families, two examples of the newest members of America's poor, who number 2.5 million more than in 2007. That means one out of every seven Americans is struggling. The hardest hit, married couples with families - half a million half a million households plunged into poverty.

"More and more families simply don't have enough income from work," said Nancy Cauthen, director of the Economic Opportunities Program at the non-profit Demos. "They're working but their incomes aren't keeping up with the rising cost of things."

The latest government numbers revive a long-standing debate about the way poverty is counted. Some experts say the current measurement fails to take account of today's economy. The way poverty is measured was devised over 50 years ago, based mostly on the cost of food. It did not include modern expenses such as transportation, housing, child care and medical costs.

"We've had to get on assistance, had to get Medicaid," Guidry said.

The new poverty numbers don't reflect the downturn of 2009, when unemployment has reached almost 10 percent. That means there's worse news to come.

[ksmit2]

Poverty? Welfare? I was 17 when my Dad entered the VA hospital in Biloxi.
VA Benefits in those days took a while, to get started, try the better
part of a year. No problem. We moved out of our swank home with 80 dollar
housenote, rented it out, and took a 50 dollar shotgun in a trashy part
of town. I was able to support my Mom and little brother, my mom did
babysitting, and housework, we got by. Working at a gas station, super
market, and McD's, paid the freight.
When we got our benefits, we were able to move back in and I started
school again, later on going to college. There was no such thing as a
"victim" in those days. You just got up in the morning and did what you
had to do. There was no hanging on street corners, girlfriends, or partying. You just worked and handed your check to your Mom.
So what?

[cs4466]

Pipeline worker making 6 figures? Ridiculous.

Five kids? Obscene.

A little more realisitic financial responsibility and a few condoms and they wouldn't be in the dire straits they are now.

[taryder]

POVERTY skyrockets in this country while President Obama CONTINUES 3 wars; Afghanistan, Pakistan and Iraq........and considers sending even MORE TROOPS.

Is there something really WRONG with this picture?! Obama appears not much different than GWB and the Republicans......Three wars and counting, $$$$ BILLIONS continues to be given away to the wealthiest, $$$ to banks, Wall Street, telling everyone to spend, spend, spend, ....new cars, new houses, etc. Not much different than the previous administration. .....and health care.....who did this administration talk to first with secret meetings at the White House....Insurance companies, pharmaceiticals, and doctors......town meetings with REAL people LAST. And then they wonder WHY people were so ANGRY. Gee, duh!!

[actornaught]

by lloydbest1 September 11, 2009 10:14 AM EDT

Excellent post illustrating what it's like to live in America. It should be required reading, but only if readers focus on the main point. It's too bad that drivelphobe responded first and so unkindly. But mostly it's a shame that he blew right thru your main point, purely to have an opportunity to be critical of you personally.

The poor in this country are the victims that the neo-conned have been trained to blame. People don't come in one size or shape, and none of talent, luck or opportunity are consistent among them, either.

[BobinPgh]

Lloyd, I don't know how many kids you had but if you had quite a few then there is your economic problem right there. You probably would not be as bad off had you had fewer - or no - kids! Just as I feel the woman in the article who had 5 kids brought it upon herself.

[straightener--2008]

i'm just happy this story wasn't about a struggling illegal immigrant trying to find work and a better life over here in america. this story highlights the stark truth that there are impovrished AMERICANS here that need our help. let's cut our foreign aid in half and help our own first.

[bubbadubba]

Great news for the billionaires!
The plan to put most Americans in poverty and make them slaves to the rich is working great.
Typical old style Soviet communist plan masterminded and accomplished by GW Bush (who did not actually win the election )and the communist Republican Congress.
Just like in the Soviet Union, only the top people are allowed to have anything in the US and the wealthy control the top political party members with bribes. The media is now controlled by the top wealthy people and spews lies and propaganda for the party. Top communist party members fill the radio waves with propaganda and lies to disrupt any intelligent thought.
President Obama is attacked constantly as a "dissident" and "socialist" since he is for the working people.
Amerika became a communist country under GW Bushki and comrades.

[clancy49]

Please show me one thing since January and even before with a solid Democratic Congress that has benefitted the American People. Just one thing! You talk about the Republicans? We've had a Democratic Congress for two years. If the Democrats are are so wonderful why have things gotten worse in two years? Democrats or Republican Representatives, it doesn't matter. They live high on the hog and are killing the working poor.

[antoniof123]

Hey dude do you remember what happened to the Soviet Union it fell. They did it through peace but in America I don't think it would happen that way.

In fact I can say that it would be very bloody. But then that is me.

[skepticalJM]

Last year less than 1% of the population of the USA made almost 25% of the total income!

Lincoln said:
"As I would not be a SLAVE, so I would not be a MASTER ? this expresses my idea of democracy ? whatever differs from this, to the extent of the difference, is no democracy."

The difference mentioned here is the very same difference shown in the ever-widening disparity growing in this country between the haves and have-nots.
There are alternatives to the greed of CAPITALISM; one of them is NOT communism;

Democratic Socialism WORKS!

Of course the greedy poor, and the Masters of the Universe won't like it!

[spaceatoms]

I like poverty, since now India and China own the United States, politics are getting weirder every day as the inflation has taken over, and now you have a split monetary society as well as a melting pot. And you then put the icing of having Mexico fuel us by taking out money also to the cartels, so I might have enough for a Taco Bell after all is said and done.

[BobinPgh]

One thing that is not brought up is that both of these families have FIVE KIDS!! Maybe if they did not have such large families they would not be in such a bad financial situation even with these bad things happening - which are real, but a smaller family could live through it better. The people need to take responsibility and STOP HAVING KIDS!

[gboyd41]

Have as many offspring as you want,the govt-POTUS Obama, and my tax dollars will support you!

[BobinPgh]

One service she should receive for free is Planned Parenthood for some birth control!