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Americans more poor than before

US census reported today that one in six American household lives in poverty. The continued struggle of the economy and high unemployment has devastated the middle class and their ranks have disappeared into poor class, people who can barely survive. About forty-six million people now live in poverty the highest number since 1959 according to US census reports. Officially according to census reports,  family of four making less than $ 22,314  is defined as living in poverty.

The long winding unemployment and highest unemployment rate at 9.2 percent over two years and a struggling economy has shattered the hopes of American dream for millions. As poverty rose, the median income declined to $49, 445 down 2.3 percent from the 2009 levels. The income levels have not stopped declining additionally, the worst may not be over. The continuing demand for food stamps and high numbers of unemployed always contributes to more declines. Just about 6 million people are now long-term unemployed, meaning they are jobless for longer than 6 months.



In spite of the passage of Healthcare reform under President Obama, the number of uninsured American rose to 16.3 percent up from 16.1 percent mainly due to job losses as employer paid healthcare became beyond the reach of the unemployed. The Healthcare reform bill hardly made a dent in the overall benefits to the nation as poverty made its way up. However there is one silver lining in the statistics since the passage of Healthcare reform act the number of uninsured people aged 18 to 26 has dropped from 29.1 percent to 27 percent due to coverage provided by parent’s policies. That is not much, but a certain improvement in the overall numbers. What remains to be seen how a large numbers of uninsured could be covered when all provisions trigger 2014. So far the bill seems not made any difference to insure Americans.


The retailers understand of these new statistics and many retail manufacturers like Proctor and Gamble and Saks Fifth avenue has changed their marketing tactics and outlays. Proctor and Gamble have adopted an hour-glass online strategy serving either more expensive buyers or lower end of buyers in keeping with values because of the shrinking middle class and dropping income levels. As  income levels decline, people are more tend to buy products differently and prefer lower prices which often have lower end products at groceries stores  and retail outlets along with other durable goods.


Geographically speaking, poverty rate was the highest in Mississippi , followed by Louisiana, District of Columbia, New Mexico and Arizona. Poverty rose highest among Hispanics from 25.3 percent to 26.3 percent and among blacks from 25.8 percent to 28.3 percent. The only group that escaped being hit by poverty statistics was Asians.


During an election year and the upcoming 2012 election there would be great amount of discussion on the fortunes of the people and how they fared during President Obama’s term. Higher unemployment and higher poverty levels among Hispanic and Black voters would be detrimental to his chances of re-election. Even though the President is pushing his 447 Billion dollar jobs bill in Congress there is barely hope if that will succeed. It remains to be seen how these high levels poverty could be overcome as nation’s efforts and resources are already being directed elsewhere, into defense spending and Wars ,that consume just about 2 billions dollars a week.

{ 3 comments… read them below or add one }

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prashant kumar April 11, 2018 at 5:10 am

There is the rise of unemployment even also in America than definitely what the developing country would do.


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