This video is a part of our collection “The Numbers That Outlined 2022.”
Transcript
Probably the most essential numbers of the yr that you simply won’t have heard of is 7.8 %. That’s the share of People who have been residing in poverty in 2021, in accordance with the most recent supplemental poverty rate, which was launched by the U.S. Census Bureau in September of 2022. This metric, versus the official poverty price, captures how many individuals reside in poverty after accounting for the affect of key authorities applications focused at low-income households.
Throughout the pandemic, the federal government spent unprecedented funds to assist lower-income households. So this is without doubt one of the first clear measurements we have now of how COVID stimulus influenced poverty in America. And seven.8 % is, the truth is, the bottom recorded poverty price on file, for the reason that Bureau began monitoring this metric. Included in that determine is simply 5.2 % of American youngsters who lived in poverty in 2021, a 46 % drop from 2020 and likewise the bottom determine we’ve seen.
A number of the drop in poverty could be ascribed to the federal government’s COVID-19 reduction efforts in 2020 and 2021, together with the expanded baby tax credit score, which helped considerably cut back baby and total poverty in America by giving low-income households with youngsters further money. For all that we regularly speak about Congress not with the ability to legislate or being caught in gridlock, it appears clear that it loved one of the crucial unquestionable coverage victories in latest U.S. historical past: lifting thousands and thousands out of poverty.
However in fact, it’s extra difficult than that. For a similar causes that each one that authorities assist helped cut back poverty, its absence will probably assist carry poverty again. You’ll be able to’t completely clear up poverty with a brief inflow of money.
The final federal COVID stimulus checks went out all the best way again in March of 2021, and the expanded baby tax credit score was phased out on the finish of final yr. By early this yr, it appeared that baby poverty was rising once more, and plenty of People reported not with the ability to pay for primary wants. Inflation is part of that — and a few would argue, spurred on by the additional stimulus. And now, rising rates of interest — and the worry of a recession — additionally loom massive for lower-income households.
So whereas simply 7.8 % of People residing in poverty counts as a coverage victory, anticipate that quantity to be increased subsequent yr.
Extra details about the SPM chart: The Supplemental Poverty Measure (SPM) estimates for 2019 and past replicate the implementation of revised SPM methodology; extra info is accessible in “Poverty in the United States: 2021” report from the US Census Bureau, Appendix B. The info for 2017 and past replicate the implementation of an up to date processing system. The info for 2013 and past replicate the implementation of redesigned earnings questions.
