Nation’s poverty statistics can be misleading

Published 11:07 pm Saturday, September 18, 2010

I’m sure we are all concerned about the recent articles in the media concerning the number of people living in poverty in this country.

However a review of the numbers used to establish who is in poverty may cause one to believe the number is larger than it could be if all “income” were counted.

Please see below:

  • Income Used to Compute Poverty Status (Money Income)
  • Includes earnings, unemployment compensation, workers’ compensation, Social Security, Supplemental Security Income, public assistance, veterans’ payments, survivor benefits, pension or retirement income, interest, dividends, rents, royalties, income from estates, trusts, educational assistance, alimony, child support, assistance from outside the household, and other miscellaneous sources.
  • Non-cash benefits (such as food stamps and housing subsidies) do not count.
  • Before taxes
  • Excludes capital gains or losses.
  • If a person lives with a family, add up the income of all family members. (Non-relatives, such as housemates, do not count.)

Email newsletter signup

I wonder how many fewer would be considered in poverty if noncash benefits and non-relatives were counted?

Also, commodity distributions such as cheese, rice, beans and canned meat, and school lunches, free cell phones, earned income tax credit, etc., don’t seem to be mentioned anywhere.

Paul Woods

Ironton