Business

Poverty Rate Rises

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This is sad news, but understandable given that the recession in the 90s took nearly four years to recover from. 9/11 and the stock market swoon can be seen as much worse contributors to an overall decline.

However, what isn’t understandable is that while poverty numbers rise, more people are working and producing goods and therefore productivity is up across the board. So why has the income for those groups gone down?

And not to beat up on the wealthy, but the only group that saw a significant increase in their income was the top 5%.

From the AP:

WASHINGTON – Even with a robust economy that was adding jobs last year, the number of Americans who fell into poverty rose to 37 million â€â€? up 1.1 million from 2003 â€â€? according to Census Bureau figures released Tuesday.

It marks the fourth straight increase in the government’s annual poverty measure.

The Census Bureau also said household income remained flat, and that the number of people without health insurance edged up by about 800,000 to 45.8 million people.

“I was surprised,” said Sheldon Danziger, co-director of the National Poverty Center at the University of Michigan. “I thought things would have turned around by now.”

800,000 more people without health care? When will this end?

And it looks like the Midwest (my timezone) was hit worst of all.

Regionally, income declined only in the Midwest, down 2.8 percent to $44,657.

Thoughts?

  • Meredith

    Well, it’s certainly not going to end by magic. As long as we do nothing about poverty, it will continue to get worse. For example, what effect will Hurricane Katrina have on the economy?