Low Income

Poverty in the United States

Poverty is a state of deprivation, lacking the usual or socially acceptable amount of money or material possessions. The most common measure of poverty in the U.S. is the "poverty threshold" set by the U.S. government. This measure recognizes poverty as a lack of those goods and services commonly taken for granted by members of mainstream society. The official threshold is adjusted for inflation using the consumer price index.

Most Americans will spend at least one year below the poverty line at some point between ages 25 and 75. Poverty rates are persistently higher in rural and inner city parts of the country as compared to suburban areas.

Estimates of the number of Americans living in poverty vary. One organization estimated that in 2015, 13.5% (43.1 million) of Americans lived in poverty. Yet other scholars put the number at around 100 million, equating to a third of the U.S. population. Starting in the 1930s, relative poverty rates have consistently exceeded those of other wealthy nations. The lowest poverty rates are found in New Hampshire, Vermont, Minnesota and Nebraska, which have between 8.7% and 9.1% of their population living in poverty.

In 2009 the number of people who were in poverty was approaching 1960s levels that led to the national War on Poverty. In 2011 extreme poverty in the United States, meaning households living on less than $2 per day before government benefits, was double 1996 levels at 1.5 million households, including 2.8 million children.

In 2012 the percentage of seniors living in poverty was 14% while 18% of children were. The addition of Social Security benefits contributed more to reduce poverty than any other factor.

In 2011, child poverty reached record high levels, with 16.7 million children living in food insecure households, about 35% more than 2007 levels. A 2013 UNICEF report ranked the U.S. as having the second highest relative child poverty rates in the developed world. According to a 2016 study by the Urban Institute, teenagers in low income communities are often forced to join gangs, save school lunches, sell drugs or exchange sexual favors because they cannot afford food.

There were about 643,000 sheltered and unsheltered homeless people nationwide in January 2009. Almost two-thirds stayed in an emergency shelter or transitional housing program and the other third were living on the street, in an abandoned building, or another place not meant for human habitation. About 1.56 million people, or about 0.5% of the U.S. population, used an emergency shelter or a transitional housing program between October 1, 2008 and September 30, 2009. Around 44% of homeless people are employed.