Poverty Rate
Critical Analysis
According to the data in the chart, what is the current U.S. poverty rate - accounting for government aid programs?
Based on the data from the chart, describe one trend in the U.S. poverty rate between 1960-2021?
The Census Bureau reported on Tuesday that 9.1 percent of Americans were living below the poverty line last year, down from 11.8 percent in 2019. That figure — the lowest since records began in 1967, according to calculations from researchers at Columbia University — is based on a measure that accounts for the impact of government programs. Identify one reason for the overall trend in the U.S. poverty rate.
During the pandemic, the U.S. faced its most severe economic contraction since the Great Depression. Yet hunger did not rise in 2020, and the U.S. poverty rate actually went down, partly because Congress expanded unemployment benefits and food aid, doled out hundreds of billions of dollars to small businesses and sent direct checks to most Americans. Explain how the U.S. has its lowest poverty rate after one of its most deadly economic disasters?
The expanded U.S. government aid came in large part through legislation passed by a Republican Senate and overseen by a Republican President. Why did a political party that is usually opposed to expanding government programs embrace this dramatic increase in government economic intervention?
As the government poured billions into aiding Americans during the economic crisis, the deficit (the amount of money one spends, above the amount one has) rose to $3,700 billion in one year. Wow! How does the government (or a business, a person, even you- buying a car, apartment, house, or even paying college tuition) spend money it does not currently have?
What is the downside (bad) to deficit spending, and what is the upside (good) to reducing poverty?
Generally, to pay for programs a government must increase revenue (taxes) or borrow money. Some politicians have argued for a more lasting expansion of the safety net. Do you think the U.S. should implement permanent measures. to keep the poverty rate and level of hunger down even if it means raising taxes or continuing deficit spending?
In general, explain whether an Anti-Federalist would like the national government playing a large role in American economics.
Describe two ways that Congress or Judiciary could use checks and balances to stop or slow executive branch measures to reduce poverty and hunger.
Learning Extension
Download the U.S. Census Bureau’s Full Presentation: Income, Poverty and Health Insurance Coverage in the U.S., 2020 [4.2 MB]
Action Extension
Contact your U.S. Senators and let them know what you think about whether the government should try to maintain, lower, or raise our current poverty rate.
