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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 2005, the government has set the poverty guidelines at:
| Size of Family Unit |
48 Contiguous States and D.C. |
Alaska |
Hawaii |
| 1 |
$9,800 |
$12,250 |
$11,270 |
| 2 |
13,200 |
16,500 |
15,180 |
| 3 |
16,600 |
20,750 |
19,090 |
| 4 |
20,000 |
25,000 |
23,000 |
| 5 |
23,400 |
29,250 |
26,910 |
| 6 |
26,800 |
33,500 |
30,820 |
| 7 |
30,200 |
37,750 |
34,730 |
| 8 |
33,600 |
42,000 |
38,640 |
For each
additional
person, add |
3,400 |
4,250 |
3,910 |
Source: Federal Register, Vol. 71, No. 15,
January 24, 2006, pp. 3848-3849.
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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