Recalibrating the Poverty LineRoundup: Historians' Take
John E. Schwarz is professor emeritus of government and public policy at the University of Arizona, senior distinguished fellow at Demos and the author of Common Credo: The Path Back to American Success.
This year marks the 50th anniversary of the landmark paper that helped delineate the federal poverty line. A huge leap forward in its day, the poverty line established credible criteria for what constituted an acceptable standard of living. It continues to be the official measure used, for example, to determine who will get what subsidies under assistance programs such as food stamps, housing assistance and Medicaid.
However, like anything half a century old, it could use a little updating. By its standards, only 15% of Americans fall below the poverty benchmark. Yet more than 35% of us hold jobs paying less than a living wage or are unemployed and trying to find a job, and another 1 in 10 receives just above a living wage. The out-of-whack poverty line carries huge repercussions for the poor, near poor and, indeed, the entire economy.
Here's the background. Mollie Orshansky, an economist and statistician with the Social Security Administration, devised the poverty line in the 1960s. She used the average family budget and the cost of food. Because the average family spent one-third of its budget on food in 1955, Orshansky set the poverty threshold at three times the minimum cost to purchase an adequate food diet. Her formula took a basic minimum (the food budget) and related it to the overall prevailing standard of living (its proportion in the total budget of the average family). She described it as an acceptable minimum social standard according to the custom of the day. It was not an absolute measure of poverty....
comments powered by Disqus
- Trump just promised the biggest tax cut in history
- An African Diaspora group at Columbia University draped a KKK hood over Thomas Jefferson
- Documents show how CIA connived with Chilean publisher to overthrow Allende
- Is Trump right that he's signed more executive orders than FDR in his first 100 days?
- 500 Years After Expulsion, Sicily’s Jews Reclaim a Lost History
- Nathaniel Philbrick wins the $50,000 2017 George Washington Prize
- In an interview Jill Lepore explains how she writes and the writers she admires most
- Trump is no Hitler – he’s a Mussolini, says Oxford historian
- Rick Perlstein’s still drawing brickbats for his confession in the NYT that historians (like him) have misinterpreted modern conservatism
- “Historians are shockingly dismissive of people in ‘flyover country,’ ” says Pulitzer-winning historian T. J. Stiles