US Poverty Rate Increases as Household Income Decreases
According to the Census Bureau, at least 46.2 million Americans or 15.1 percent lived in poverty in 2010. This is the highest poverty rate since 1993. The average household income also decreased during the same period and the number of people without health insurance coverage increased. These are the results of the recent recession.
In 2010, the poverty rate increased 0.8 points from 14.2 percent in 2009. The number of children living in poverty also increased in the same period to 22 percent, which is 1.3 points higher compared to 2009. The poverty rate for people between the ages of 18 and 64 also rose from 12.9 percent to 13.7 percent.
Recession began in 2007 and since then the poverty rate rose by 2.6 percent. For a family of four, their average poverty threshold is $22,314. Among the races, the Blacks and Hispanics have the greatest poverty levels. Their poverty rates are twice that of non-Hispanic whites.
Among the regions, the South experienced the biggest increase in poverty rate. It is double that of the rate of Northeast, West and the Midwest. The poverty rate rose nationwide while the average income of households reduced by 2.3 percent to $49,445.
Poverty rate increased and the average household income decreased, as the number of people without insurance coverage increase to 49.9 million. This is up 900,000 from 2009. But at the same time, the number of insured increased from 255.3 million to 256.2 million.