Government programs kept tens of millions out of poverty in 2018

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Government programs kept tens of millions out of poverty in 2018

9 Nov 2019

**Correction: The SSI number in Figure B was corrected to 2,949,000 from 3,949,000.** From 2017 to 2018, the official poverty rate fell by 0.5 percentage points, as household incomes rose modestly, albeit at a slower pace than the previous three years. This was the fourth year in a row that poverty declined, but the poverty rate remains half a percentage point higher than the low of 11.3% it reached in 2000. Since 2010, the U.S. Census Bureau has also released an alternative to the official poverty measure known as the Supplemental Poverty Measure (SPM). The SPM corrects many deficiencies in the official rate. For one, it constructs a more comprehensive threshold for incomes families need to live free of poverty, and adjusts that threshold for regional price differences. For another, it accounts for the resources available to poor families that are not included in the official rate, such as food stamps and other in-kind government benefits. As shown in Figure A, a larger proportion of Americans are in poverty as measured by the SPM than as measured by the official measure. (Importantly, however, researchers who constructed a longer historical version of the SPM found that it shows greater long-term progress in reducing poverty than the official measure.) In 2018, the SPM increased by 0.1 percentage points to 13.1%. Under the SPM, 42.5 million Americans were in poverty last year, compared with 38.1 million Americans under the “official” poverty measure. Figure A Poverty rates, official and Supplemental Poverty Measure (SPM), all people and children, 2017 and 2018 2017 2018 SPM (all people) 13.0% 13.1% Official poverty (all people) 12.3% 11.8% SPM (children) 14.2% 14.5% Official poverty (children) 17.5% 16.2% Chart Data Download data The data below can be saved or copied directly into Excel. The data underlying the figure. Source: EPI analysis of Current Population Survey Annual Social and Economic Supplement Historical Income Tables and Supplemental Poverty Measure Tables
poverty social security medicare medicaid

Authors

Julia Wolfe, Hunter Blair

Published in
Bulgaria

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