In the recession, the nation’s poverty rate climbed to 13.2 percent last year, up from 12.5 percent in 2007, according to an annual report released Thursday by the Census Bureau. The report also documented a decline in employer-provided health insurance and in coverage for adults.
The rise in the poverty rate, to the highest level since 1997, portends even larger increases this year, which has registered far higher unemployment than in 2008, economists said.
The
bureau said 39.8 million residents last year lived below the poverty
line, defined as an income of $22,025 for a family of four.
In
another sign of both the recession and the long-term stagnation of
middle-class wages, median family incomes in 2008 fell to $50,300,
compared with $52,200 the year before. This wiped out the income gains
of the previous three years, the report said.
Adjusted for inflation, in fact, median family incomes were lower in 2008 than a decade earlier.
“This
is the largest decline in the first year of a recession we’ve seen
since the Census Bureau started collecting data after World War II,”
said Lawrence Katz, an economist at Harvard University, referring to household incomes. “We’ve seen a lost decade for the typical American family.”
The
share of American residents who said they lacked health insurance
throughout the entire year remained steady, at 15.4 percent, or 46.3
million people. But the total masked some more worrisome trends that
are helping to drive the debate over a national health care overhaul.
Continuing an eight-year trend, the number of people with private or
employer-sponsored insurance declined, while the number of people
relying on government insurance programs including Medicare, Medicaid, the children’s insurance program and military insurance rose.
The
share of children who were uninsured declined, to 9.9 percent from 11
percent in 2007, apparently because of the federal government’s special
efforts to insure low-income children. But at the same time, the share
of adults aged 18 to 64 without health insurance rose, to 20.3 percent
in 2008 from 19.6 percent in 2007.
In a speech Thursday to promote his health care overhaul, President Obama
referred to the census survey and said that things had grown worse
since September 2008. “Over the last 12 months, it’s estimated that the
ranks of the uninsured have swelled by nearly six million people,” he
said.
The accuracy of the census numbers, which are collected
each spring for the previous year as part of the Current Population
Survey, is subject to debate. Family incomes in the poverty area do not
include the value of food stamps, money received through tax credits or
unreported income. On the other side, the poverty threshold has not
been adjusted over the years to reflect the rising relative costs of
housing and medical care and does not take account of large regional
differences in the cost of living.
Whatever the flaws, which
remain similar every year, “we think the C.P.S. data present a very
good measure of the trends over time,” David S. Johnson, chief of the
housing and household economic statistics division of the Census
Bureau, said Thursday in an audio news conference.
Because
unemployment has climbed so much more sharply in 2009 — averaging 9
percent, compared with an average of 5.8 percent in 2008 — “the real
spike in poverty is going to be in the ’09 numbers, which we get next
year,” said Sheldon Danziger, a professor of public policy at the University of Michigan.
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