Poor Definitions

Tuesday, September 28th, 2004

From Johan Norberg’s Poor Definitions:

Does anyone know this gentleman: He has a car, air conditioning, a refrigerator, a stove, a clothes washer and dryer, and a microwave. He has two colour televisions, cable or satellite TV reception, a VCR or DVD player, and a stereo. He is able to obtain medical care. His home is in good repair and is not overcrowded. By his own report, his family is not hungry and he had sufficient funds in the past year to meet his family?s essential needs.

This is the typical American poor, according to the definition by which there are 12.5 percent living in poverty. There is also real poverty in the US, people who experience something like overcrowding, temporary hunger or difficulty obtaining health care. But that?s only about a third of those officially classified as poor, and the groups shouldn?t be confused.

And “some other interesting facts about American poverty from a Heritage backgrounder by Robert Rector“:

  • The average poor American has more living space than the average individual living in Paris, London, Vienna and other European cities.
  • Despite the recession, nearly one million black children have been raised out of poverty since the welfare reform of 1996.
  • The census report that the top fifth of households has $14.60 in income for every $1.00 in the bottom quintile. But these figures don?t include taxes and the social safety net, and they don?t adjust for the size of households (the top quintile has 70 percent more people than the bottom quintile). When adjusted accordingly, the ratio of the income of the top quintile to that of the bottom quintile falls from $14.60 to $1.00 to $4.21 to $1.00.

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