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Focus:
Work
and Economic Security
Objective:
To
understand, in financial terms, what is meant by “the poverty line” — and
to develop an awareness of what constitutes a “living wage” in the United
States.
Introduction:
No one can predict the future. And yet, while most of us
has some idea of what the next day may bring, for people living in poverty, tomorrow is a place of frightening uncertainty. For many poor around this nation, even the smallest of economic changes today can easily send them plummeting further into hunger and misery. Even for the working poor, financial security
—
having the means to achieve a stable, fulfilling life for themselves and their families
—
is a tenuous proposition.
Food, shelter, clothing, health care, transportation —
these are only the beginnings of the basic necessities of
modern American living. Each year, the federal government calculates
the minimum amount of money required by families to meet these and
other basic needs. The resulting calculation is what is commonly
referred to as the “poverty line.” For 2004, the government has
set the poverty guidelines at:
| Size
of Family Unit |
48 Contiguous States and D.C. |
Alaska |
Hawaii |
| 1 |
$9,310 |
$11,630 |
$10,700 |
| 2 |
12,490 |
15,610 |
14,360 |
| 3 |
15,670 |
19,590 |
18,020 |
| 4 |
18,850 |
23,570 |
21,680 |
| 5 |
22,030 |
27,550 |
25,340 |
| 6 |
25,210 |
31,530 |
29,000 |
| 7 |
28,390 |
35,510 |
32,660 |
| 8 |
31,570 |
39,490 |
36,320 |
For
each
additional
person, add |
3,180 |
3,980 |
3,660 |
Source: Federal Register, Vol. 69, No. 30, February 13, 2004, pp. 7336-7338.
The above figures are based on the government’s calculations as
to the amount of money families need to feed themselves and purchase
such basic goods and services as health care and housing. And yet,
many in America believe that while such calculations are helpful
for setting requirements for governmental assistance programs, the
incomes set at the “poverty line” are not enough for families to
survive.
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