By Rasheed Shabazz
Despite an increase of 2.3 million jobs last year—the most since 2005—income and poverty levels have not improved for most people in the United States, according to data recently released by the U.S. Census Bureau.
The Census released two reports: Income and Poverty in the United States and Income, Poverty, and Health Insurance Coverage in the United States. The reports compare 2013 income and poverty data to the previous year. The Census Bureau also tracked health insurance coverage rates for five years, information which is also included in the reports.
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Poverty
Over 45 million people in the United States live in poverty. The poverty rate is “unacceptably high,” said john powell, director of the Haas Institute for a Fair and Inclusive Society. Although the official poverty rate declined, according to the report, there was no major change in the number of people living in poverty or real household income. The poverty rate is higher than before the recession.
powell added, “The recovery is uneven and there is no major social policy to address an ongoing issue.”
The poverty rate for children declined from the previous year for the first time since 2000. The percentage of children in poverty fell from 21.8 percent to 19.9 percent. Still, nearly 15 million children live in poverty in the United States.
The poverty for elderly is 9.5 percent. Women over 65 are more likely below the poverty rate. Across all age groups, a larger share of women live in poverty compared to men.
Income Inequality
The Census Bureau reports no “statistically significant” changes in income inequality over the past year; however, income inequality has increased since 1999.
In addition to inequity across class lines, income inequality exists across and within racial groups. Black and Latino families remain at the bottom of the income distribution. Additionally, inequality exists within racialized groups.
Inequality also exists based on geography. Some states, regions and cities are richer than others. “Some cities are doing well, while others are completely left out,” powell said. Many distressed cities are bankrupt, and many residents’ have homes in foreclosure or underwater.
Policies to Reduce Inequality
Two weeks ago, the Haas Institute released its first policy brief outlining policies to reduce inequality. “The Path to a Fair and Inclusive Society” recommends increasing the minimum wage, expanding the Earned Income Tax Credit, and investing in early childhood education, among other policy recommendations.
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“Inequality is a result of policies,” powell said. When combined, these policy recommendations can work together to increase opportunities and reduce barriers for different marginalized groups. “We cannot have a universal strategy,” he continued. “We must have strategies for different geographical and social locations,” a strategy powell calls “targeted universalism.”
