Poverty

1. What are your thoughts about the poor?2. What reasons do you think cause people

to end up in poverty?3. What ideas do you have for solving the

poverty problem in the US?4. What other questions do you have about

poverty in America?

Questions

Images

Income level below what is sufficient to support a household

Threshold – $11,702◦ Family of 4 = $22,891◦ Median = $51,914◦ Mean = $67,530

Calculated from the Market Basket

Poverty Threshold (Line)

Collection of G/S Typical urban consumer Normal budget categories CPI – measures the changes in prices of the

market basket over time

Market Basket of Goods

Percentage of people who live in households below the poverty line

13.8% - 2010◦ Unemployment◦ Underemployment◦ Working poor◦ Discrimination◦ Location◦ Education◦ Economic conditions◦ Medical

Poverty Rate

Measures income inequality Monitors redistribution program Antipoverty programs

Lorenz Curve

Income Distribution

Distribution of Households

Line of Equality

Actual DistributionQuintiles5 parts20%

1. What are your thoughts about the poor?2. What reasons do you think cause people

to end up in poverty?3. What ideas do you have for solving the

poverty problem in the US?4. What other questions do you have about

poverty in America?

Questions