WASHINGTON, Oct. 20, 2009

47.4M in Poverty, Revised Figures Show

Alternative Government Formulas on Medical Costs, Geography Raise 2008 U.S. Poverty Rate to 1 in 6 Americans

  •  (AP / CBS)

(AP)  The level of poverty in America is even worse than first believed.

A revised formula for calculating medical costs and geographic variations show that approximately 47.4 million Americans last year lived in poverty, 7 million more than the government's official figure.

The disparity occurs because of differing formulas the Census Bureau and the National Academy of Sciences use for calculating the poverty rate. The NAS formula shows the poverty rate to be at 15.8 percent, or nearly 1 in 6 Americans, according to calculations released this week. That's higher than the 13.2 percent, or 39.8 million, figure made available recently under the original government formula.

That measure, created in 1955, does not factor in rising medical care, transportation, child care or geographical variations in living costs. Nor does it consider non-cash government aid when calculating income. As a result, official figures released last month by Census may have overlooked millions of poor people, many of them 65 and older.

According to the revised NAS formula:

• About 18.7 percent of Americans 65 and older, or nearly 7.1 million, are in poverty compared to 9.7 percent, or 3.7 million, under the traditional measure. That's due to out-of-pocket expenses from rising Medicare premiums, deductibles and a coverage gap in the prescription drug benefit.

• About 14.3 percent of people 18 to 64, or 27 million, are in poverty, compared to 11.7 percent under the traditional measure. Many of the additional poor are low-income, working people with transportation and child-care costs.

• Child poverty is lower, at about 17.9 percent, or roughly 13.3 million, compared to 19 percent under the traditional measure. That's because single mothers and their children disproportionately receive non-cash aid such as food stamps.

• Poverty rates were higher for non-Hispanic whites (11 percent), Asians (17 percent) and Hispanics (29 percent) when compared to the traditional measure. For blacks, poverty remained flat at 24.7 percent, due to the cushioning effect of non-cash aid.

• The Northeast and West saw bigger jumps in poverty, due largely to cities with higher costs of living such as New York, Boston, Los Angeles and San Francisco.

Tables of Alternative Poverty Estimates: 2008 (Census Bureau)

The Census Bureau said it expedited release of the alternative numbers for this month because of the interest expressed by lawmakers and the Obama administration in seeing a fuller range of numbers. Legislation pending in Congress would mandate a switch to the revised formula, although the White House could choose to act on its own.

Arloc Sherman, a senior researcher at the nonprofit Center on Budget and Policy Priorities, said that because the revised formula factors in non-cash government aid, the amount of increase in poverty from 2007 to 2008 was generally smaller compared to the current measure.

"Food stamp participation rose during the first year of recession and appears to have softened what could have been an even greater increase in financial hardship," he said.

Sherman said the revised formula could take on greater importance in measuring poverty for 2009 as more Americans take advantage of tax credits and food stamps under the federal stimulus program. Food stamp assistance currently is at an all-time high of about 36 million.

By Associated Press Writer Hope Yen
© MMIX The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
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by Treadlightly2 October 22, 2009 1:20 PM EDT
Want to see where the RECOVERY ACT money is going????
Recovery.gov
Excellent tracking device that just recently became available thanks in no small part to the guy we pinned all our hopes on..Thanks Barak
Reply to this comment
by brianbwb-2009 October 22, 2009 12:51 PM EDT
I could get us back to full employment for all who wish to work, for decent wages that afford an American former standard of living.

I say former, because it was higher than it is now.

The problem is that those in power, and those who suck up to them don't want such, despite their claims to the contrary.

They like it just the way it is.
Reply to this comment
by Raedwold October 22, 2009 11:02 AM EDT
Until the people vote for policies instead of politicians nothing will change. Before you say it can't be done or you can't trust the people look at Switzerland. The Swiss get to vote on national policy every four months with the results binding.
How sad after two centuries the America people who shook off the yoke of servitude find 1 in 6 in poverty. Shameful!
Reply to this comment
by truth-b-toll October 22, 2009 2:03 AM EDT
it's about people.
it's about infrastructure.
it's about having something to defend at the end of the day.
Reply to this comment
by babooph October 22, 2009 12:37 AM EDT
Great news,with their many years of massive tax cuts,the rich can now require their maids,poolboys & gardeners to hold a masters degree& their security stooges will be highly trained laid off police with criminal justice degrees working for 7.59/hr-their lobbyists will keep the good time flowing.The children of the old middle class can be low paid army pvts protecting their wealth "NEW WORLD ORDER" for sure.
Reply to this comment
by Treadlightly2 October 21, 2009 9:20 PM EDT
Good job fellows we made the front page. he he
Reply to this comment
by noloyalisti October 21, 2009 4:58 PM EDT
We absolutely need to tax wealth, where else are we going to get the money? The rich made their money from the system that we all are a part of. Right now we have a plutocracy where 1% of the people control 95% of the wealth.

I am just glad to see most people wising up and wanting to unite against the top 1% before they get it all.
Reply to this comment
by Treadlightly2 October 20, 2009 9:43 PM EDT
This is from an article I found at BBC. They are dealing with the same problem. Trying to figure out how to make bankers more accountable.

"Our national debt is rising rapidly, not least as the consequence of support to the banking system." he said. "We shall all be paying for the impact of this crisis on the public finances for a generation.

"To paraphrase a great wartime leader, never in the field of financial endeavour has so much money been owed by so few to so many. And, one might add, so far with little real reform."

King's comments came as several banks, which either weathered last year's maelstrom, or survived only because of big government bailouts, are preparing to pay out billions of pounds in bonuses.

King said the will to reform had to continue. "Although there are no simple answers, it is in our collective interest to reduce the dependence of so many households and businesses on so few institutions that engage in so many risky activities," the governor said.

I don't like the new world order very much.
Reply to this comment
by ubrew12 October 20, 2009 7:51 PM EDT
What are you Americans complaining about? Here on planet 'WallStreet' the nation's top 23 banks and investment firms plan to give out a record $140 billion in bonuses to employees, just a year after we gave them a $700 billion taxpayer bailout without which they would be bankrupt and out of a job. I'm sure those bonuses are for a 'job well done'!! And what 'job' was that?? (other than ripping the taxpayer off of over half-a-trillion dollars?)
Reply to this comment
by Treadlightly2 October 20, 2009 8:39 PM EDT
I know burning a cross in their yard would be completely politically incorrect but maybe just set their new Mercedes Benz on fire. How about locking the greedy bastards up and making sure they are in with the general population and not segregated for safety. Something has got to change. Did all polititians start out as lawyers? There's the problem.
by Treadlightly2 October 20, 2009 7:42 PM EDT
Trying to focus on a solution instead of ranting now....OK..How about bringing back the stocks..Not stocks and bonds, the kind the pilgrims used to publicly humiliate offenders of common decency..Yes you perpetraitors of white collar crime.. be afraid..be very afraid.
Reply to this comment
by justdatrooth October 20, 2009 7:05 PM EDT
Obama's "Trickle Up Poverty" is working. It's about time something this guy did worked!
Reply to this comment
by Ms_enza October 20, 2009 7:04 PM EDT
It will be taken back; First reinstitute the DEATH TAX... TAKE 75% not just 55%...

Take it all. The Donald Trumps can make it, but the little Trumpettes will have to go without.

Paris Hilton has a right to fame and ditziness, but not dynastic wealth.

TAKE IT BACK! With a tax if we can, but FORCE if we have to.
Reply to this comment
by Treadlightly2 October 20, 2009 6:11 PM EDT
Not nice to fool mother nature. Bernie got off too easy.
Five women were paraded naked, beaten and forced to eat human excrement by villagers after being branded as witches in India's Jharkhand state.

Local police said the victims were Muslim widows who had been labelled as witches by a local cleric.

The incident occurred on Sunday in a remote village in Deoghar district.

Correspondents say the abuse of women who are branded as witches is common, but rare footage of the incident has caused outrage across India.

Police went to Pattharghatia village after being informed about the incident by a group of villagers.

'Possessed'

They have lodged a case against 11 villagers, including six women. Four people have been arrested in connection with the incident.

The victims were taken to a playground where hundreds had assembled to watch

Murari Lal Meena
Deputy police inspector general
Armed police have since been deployed to the area.

"On Sunday morning the victims were taken to a playground where hundreds had assembled to watch the ghastly incident," deputy inspector general of police Murari Lal Meena told the BBC.

"No one in the mob came forward to rescue the victims as they were being stripped and beaten up," he said.

The victims are now under police protection.

Police say that people in Pattharghatia believe that certain women in their village are possessed by a "holy spirit" that can identify those who practise witchcraft.

"These women recently identified five women from the same village as being witches who practised witchcraft and brought miseries to the area," a police official said.

Soon, an unruly mob broke into their huts, dragged them out and started beating them up.

Footage of the incident has been aired on television channels in India prompting outrage.

Hundreds of people, mostly women, have been killed in India because their neighbours thought they were witches.

Experts say superstitious beliefs are behind some of these attacks, but there are occasions when people - especially widows - are targeted for their land and property.
Reply to this comment
by lovenpeace1 October 20, 2009 6:21 PM EDT
by Treadlightly2 October 20, 2009 6:11 PM EDT
Not nice to fool mother nature.

******************

Hey Treadlightly2,

This story reminds me of the Balloon boys in Colorado who were completely abused by their parents. How similars!
by LCCLYDE October 20, 2009 6:04 PM EDT
My own personal experiance is this,the 8 years Reagan was in office I worked but wages were low and lay-offs many.Bush1 took over and I worked 16 months mostly on the road away from my family having to cover the expense of motel living and send money home,then came Clinton,I went to work and stayed employed getting regular raises in pay and in '99 got a 45000 Christmas bonus.I went from earning $24000 in 89 to $90000 in 2000.After Bush 2 took officeeverything came to a sudden stop.Work 6 months be off a year,work a year be off 18 months.AS of now I have been on unemployment since December of '08,my house of 30 years is in trouble of being lost.Just my own situation butI BLAME BOTH Bushes and fat cat Rush REPUBLICAN IDIOTS THAT LIED ABOUT WMDs AND PROFFITED BIG TME FROM THE WAR.They haveleft A GREAT COUNTRYin ruinsIseriously dont know if we can pull out of.
LC CLYDE DALLAS TX.
Reply to this comment
by ubrew12 October 20, 2009 8:00 PM EDT
And the most horrifying result of this robbery? What has happened to your 'work ethic'? You work for 30 years, get treated like sh*t EACH AND EVERY YEAR. But your work ethic keeps telling you to have hope, have hope, next year will be better. After 30 years you realize: IT'S NOT UP TO YOU!!!! It's up to forces WAY beyond your control, whether you get paid a living wage or not. With a living wage, you can own your own self-esteem, and can work with a measure of happiness. But, sorry, that's just TOO EXPENSIVE for the wealthy of America, you have a crushing need to own a third yacht, so you'll have to work 12 hrs a day and STILL get treated like a child. Welcome to the new slavery, same as the old slavery...
by bubbadubba October 20, 2009 5:13 PM EDT
Personal attacks do not scare me.
I will post what I want to and if anyone does not like it that is their problem.
Reply to this comment
by tattiio October 20, 2009 4:57 PM EDT
What is insane is we have a president who wants to spend more money on other countries when we having starving people here. This fool in the white house just promised 250 billion for foriegn aid. Is the man still high from college. Pay off the debt first. He really may be the most clueless person on business I have ever seen. When are we going to get a president who knows business, not bs. The last three have been artist rather than Americans.
Reply to this comment
by warsux October 20, 2009 7:08 PM EDT
uhhhh bush spent billion upon trillions on Iraq (had nothing to do with 9/11, got those wmd's yet?), spent billions on aids in africa, and so on. You got a problem with spending money on foreigners, you gotta look at both sides of the aisle on that one.

Pay off WHAT debt first? The one that didnt exist before Bush got into power?

You have got to be the most clueless human being I have ever come across. Think about what you say before you blurt out lies or misinformation.
by Treadlightly2 October 20, 2009 4:44 PM EDT
Somebody who knows how needs to post this article on YOUTUBE or something. This is the kind of information that should go viral rather than the usual Bubble Boy Keerraapp.
Reply to this comment
by lovenpeace1 October 20, 2009 4:41 PM EDT
by ubrew12 October 20, 2009 4:28 PM EDT
Treadlightly2 said: "I want to subscribe to your newsletter. Where can I find it? Time to burn some more witches. Or at least prosecute the people who profited from the whole housing scam." LOL. What newsletter? I'm just a guy posting on this website. In fact, I gotta go. I'm just incensed that American's can fall for this greed-driven cr*p time and time again. It's like we NEVER learn in this country, and so much unnecessary suffering is hatched as a result.

*****************

Hey ubrew12,

What is the most incredible to me about American Politics is that Americans are in this current Economic Meltdown mess because of De-Regulation Policies meaning Smaller-Government. Where is Phil Gramm?

If the Economy does not recover with lower Unemployments numbers by the summer of next year 2010, Americans may vote for a more Republican Congress whom promised a smaller-government.

In other words, press the ReDial button.
Reply to this comment
by lovenpeace1 October 20, 2009 4:37 PM EDT
by Marc_1986 October 20, 2009 4:25 PM EDT
@lovenpeace

Hate to break it to you, not everyone can be a multi-millionaire. Sorry I crushed your utopian dreams.

******************

Hey Marc_1986,

Finally, we agreed on something. So, lets never work hard in our life. I want to buy you a beer! Bud or Corona?
Reply to this comment
by skepticalJM October 20, 2009 4:17 PM EDT
Wow! All the irresponsible people out there! They must not be working hard enough! After all, if you work hard you will achieve anything you want!
Won't you?
Reply to this comment
by lovenpeace1 October 20, 2009 4:22 PM EDT
by skepticalJM October 20, 2009 4:17 PM EDT
Wow! All the irresponsible people out there! They must not be working hard enough! After all, if you work hard you will achieve anything you want!
Won't you?

***********************

Hey skepticalJM,

For every 10 new Businesses, 8.6 file for Chapter 11 and close within 5 years.

For every Manager in America, there are an average of 11 workers under him/her. Only 1 can be promoted to management every 7 years on average.

Can you please share with me the secret of how do I get those "Guaranteed Multi-Millions Compensation Regardless of Performance' clause like at AIG into my employment contract?
by Marc_1986 October 20, 2009 4:25 PM EDT
@lovenpeace

Hate to break it to you, not everyone can be a multi-millionaire. Sorry I crushed your utopian dreams.
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