Activity 1: “Hard Living on the Poverty Line”

Is the poverty line a realistic measure? Can families whose income is at the poverty line have enough money to secure the basic needs to live in America today? Can people hold a steady job, work full time and still find themselves falling below the poverty line?

Have your group follow these steps to better understand the personal economics of poverty:

1. Determine what the minimum wage is in the United States today – that is, the dollar amount per hour. Then, calculate what a worker earning that much per hour could make in a year, based upon a 40-hour week and 52 weeks a year. (A full-time worker, earning the minimum wage of $5.15, working 2080 hours a year, would earn $10,712.)

2. Refer to the federal poverty guidelines and find the income level needed for a family of three to be considered “above the poverty line.” (For a family of 3 living in the 48 continuous states, the poverty line is set at $16,600.)

3. Compare the annual earnings of an individual working full time at minimum wage and the poverty line for a family of three. Note the discrepancy. Now, using the minimum wage figure, determine how many total hours that family must work to be above the poverty line. Consider the following: Is only one member in that family capable of working? Is it a single-parent family? If so, will it require one person working more than one job to rise above the poverty line?

4. Taking the poverty-line calculation for a family of three, explore whether that level of income can actually provide for all basic needs. Determine the monthly minimum wage ($892), then estimate the amount a family of three would spend in a month for:

Food:
Meals away from home:
Clothing:
Rent/Mortgage:
Utilities:
Health care:
Transportation:
Childcare:
Insurance/savings:
Entertainment:

5. Now compare your answers against the average monthly expenses of a minimum wage earner:

(Source: AFL-CIO)

6. Keep adjusting the figures until the monthly budget limit is met. Having trouble making ends meet? Imagine how a family living in poverty feels.

A number of resources contained within the Poverty USA Web site can help separate the facts from the myths about poverty in America today – and can help emphasize the need for personal action and service to this important cause. You can begin by directing your group to take a tour through America’s forgotten state of poverty via the “Tour Poverty USA” multimedia presentation located at www.povertyusa.org. This animated presentation explores the difficulties of providing for a family’s well being when you are living below the poverty line. Next, direct your group to the “Poverty Quiz,” also located at www.povertyusa.org. Here, group members can take a self-directed “True-False” quiz that helps illuminate current statistics on American poverty. Both the Poverty USA Tour and Poverty Quiz can be used as the starting-points for group discussions about the facts – and myths – surrounding the issues of poverty in America today.

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