Introduction to US Poverty 101

Most of us Chinese here have limited exposure to the poor in the US and the various public assistance programs. Without a good overall picture, you are easily influenced by a few words you pick up here or there and form wrong opinions. Let's take a quick look at some facts.

1. What is poverty? By the government definition:

Income per month: 1 person: $920; 4 person: $1950

Now try to figure out how to squeeze a living with that amount. Don't scream. According to statistics, over 50% American adults spent some time under that line.

2. Various low income groups and federal sources (item with *: estimated benefits and number of people):

a. Retirees: average amount received from SS: $1200/m. Total recepients: 60m(individuals here as well as following except denoted as households or families).

b. Unemployment Benefit: average amount: $1500/m. Total recepients: 6m.

c. Disability: average amount: $1063/m. Total recepients: 8m.

d. Food stamp: anybody with income level under the proverty line and no more than a few thousand dollar's worth (including such people in a to c) can receive an amount based on the income. Average amount: $140/month/person. Total recepients: 40m.

e. HUD Sec. 8: average: $600/m. Total household: 4m.

f. State welfare:(temporary assistance with time limitations, but those people always find ways to get back). Average: $600/m single person, $1000/m family. Total: 10m.(*)

g. Temporary assistance from charity organizations: single payment toward 1st month rent. Average: $600. Total: 1m (*)

h. Utility assistance: Average: $100/m. Total: 2m (*)

After you have read through my list, you probably are aghast at how small a percentage that actually work here and pay up to all these expenses.

It is not difficult for a couple with a couple of kids to get 3k from government programs. They don't live well-off in any sense, but think that they don't pay taxes, they don't put into retirement, they don't pay medical bills, and they don't pay kid's lunch money. This means if they use this money judiciously they are not worse off than some people making 40-50k.

In this post I just lay out the facts. I will find another opportunity to voice my opinion.