Poverty in the United States

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April 10, 2026

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April 10, 2026

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"The way the U.S. government counts who is poor and who is not, frankly, is a sixty-year-old mess that doesn’t tell us what we need to know. It’s an inflation-adjusted measure of the cost of a basket of food in 1955 relative to household income, adjusted for family size—and it’s still the way we today. But this measure doesn’t account for the costs of housing, child care, or health care, much less twenty-first-century needs like internet access or cell phone service. It doesn’t even track the impacts of like or the earned income tax credit, obscuring the role they play in reducing poverty. In short, the official measure of poverty doesn’t begin to touch the depth and breadth of economic hardship in the world’s wealthiest nation, where 40 percent of us can’t afford a $400 emergency. In a report with the , the Poor People’s Campaign found that nearly 140 million Americans were poor or low-income—including more than a third of white people, 40 percent of Asian people, approximately 60 percent each of indigenous people and black people, and 64 percent of Latinx people. LGBTQ people are also disproportionately affected. Further, the very condition of being poor in the United States has been criminalized through a system of racial profiling, cash bail, the myth of the Reagan-era “,” arrests for things such as laying one’s head on a park bench, passing out food to unsheltered people, and extraordinary fines and fees for misdemeanors such as failing to use a turn signal, and simply walking while black or trans."

- Poverty in the United States

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"Even after you adjust for income and education, black Americans are more likely than any other group to live in neighborhoods with substantial pockets of poverty. Black Americans live with a level of poverty that is simply unknown to the vast majority of whites. It’s tempting to attribute this to the income disparity between blacks and whites. Since blacks are more likely to be poor, it stands to reason that they’re more likely to live in poor neighborhoods. But the fact of large-scale neighborhood poverty holds true for higher-income black Americans as well. Middle-class blacks are far more likely than middle-class whites to live in areas with significant amounts of poverty. Among today’s cohort of middle- and upper-class blacks, about half were raised in neighborhoods of at least 20 percent poverty. Only 1 percent of today’s middle- and upper-class whites can say the same. In short, if you took two children—one white, one black—and gave them parents with similar jobs, similar educations, and similar values, the black child would be much more likely to grow up in a neighborhood with higher poverty, worse schools, and more violence. This is an outright disaster for income mobility. Given their circumstances, blacks face a reversal of their gains over the last generation. Simply put, the persistence of poor neighborhoods is a fact of life for the large majority of blacks; it’s been transmitted from one generation to the next, and shows little sign of changing."

- Poverty in the United States

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"Averages can conceal a lot, of course. The rise in inflation-adjusted wages, which economists call “real wages,” might not be such good news if it were flowing mostly to the already-wealthy, as it did during the recovery from the Great Recession. In fact, from 1964 through 2018, real wages for most workers hardly budged; almost all gains went to the richest Americans. In the early days of the pandemic, when millions of low-income workers found themselves suddenly out of a job, it would have been reasonable to expect the same trend to play itself out. Instead, the opposite happened. A recent analysis from the Economic Policy Institute found that from the end of 2019 to the end of 2023, the lowest-paid decile of workers saw their wages rise four times faster than middle-class workers and more than 10 times faster than the richest decile. A recent working paper by Dube and two co-authors reached similar conclusions. Wage gains at the bottom, they found, have been so steep that they have erased a full third of the rise in wage inequality between the poorest and richest workers over the previous 40 years. This finding holds even when you account for the fact that lower-income Americans tend to spend a higher proportion of their income on the items that have experienced the largest price increases in recent years, such as food and gas. “We haven’t seen a reduction in wage inequality like this since the 1940s,” Dube told me. Pay in America is becoming more equal along race, age, and education lines as well. The wage gap between Black and white Americans has shrunk to its lowest point since at least the 1980s. Pay for workers younger than 25 has increased twice as fast as older workers’ pay. And the so-called college wage premium—the pay gap between those with and without a college degree—has shrunk to its lowest measure in 15 years. (The gender pay gap has also narrowed slightly, but far less than the others.)"

- Poverty in the United States

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"Imagine, for a moment, this scenario: a 200-meter footrace in which the starting blocks of some competitors are placed 75 meters behind the others. Barring an Olympic-caliber runner, those who started way in front will naturally win. Now, think of that as an analogy for the predicament that American kids born in poverty face through no fault of their own. They may be smart and diligent, their parents may do their best to care for them, but they begin life with a huge handicap. As a start, the nutrition of poor children will generally be inferior to that of other kids. No surprise there, but here’s what’s not common knowledge: A childhood nutritional deficit matters for years afterwards, possibly for life. Scientific research shows that, by age three, the quality of childrens’ diets is already shaping the development of critical parts of young brains like the and prefrontal cortex in ways that matter. That’s worth keeping in mind because four million American kids under age six were poor in 2018, as were close to half of those in families headed by single women. Indeed, the process starts even earlier. Poor mothers may themselves have nutritional deficiencies that increase their risk of having babies with . That, in turn, can have long-term effects on children’s health, what level of education they reach, and their future incomes since the quality of nutrition affects , concentration, and cognitive capacity. It also increases the chances of having and experiencing mental health problems."

- Poverty in the United States

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