This video is a part of our sequence “The Numbers That Outlined 2022.”
Transcript
One of the vital vital numbers of the yr that you just won’t have heard of is 7.8 p.c. That’s the share of Individuals who had been residing in poverty in 2021, in keeping with the latest supplemental poverty price, which was launched by the U.S. Census Bureau in September of 2022. This metric, versus the official poverty price, captures how many individuals live in poverty after accounting for the influence of key authorities applications focused at low-income households.
Throughout the pandemic, the federal government spent unprecedented funds to help lower-income households. So this is without doubt one of the first clear measurements we now have of how COVID stimulus influenced poverty in America. And seven.8 p.c is, actually, the bottom recorded poverty price on file, because the Bureau began monitoring this metric. Included in that determine is simply 5.2 p.c of American youngsters who lived in poverty in 2021, a 46 p.c drop from 2020 and in addition the bottom determine we’ve seen.
A whole lot of the drop in poverty may be ascribed to the federal government’s COVID-19 reduction efforts in 2020 and 2021, together with the expanded youngster tax credit score, which helped considerably scale back youngster and general poverty in America by giving low-income households with youngsters further money. For all that we regularly speak about Congress not having the ability to legislate or being caught in gridlock, it appears clear that it loved one of the vital unquestionable coverage victories in current U.S. historical past: lifting hundreds of thousands out of poverty.
However after all, it’s extra sophisticated than that. For a similar causes that each one that authorities support helped scale back poverty, its absence will doubtless assist convey poverty again. You may’t completely resolve poverty with a short lived inflow of money.
The final federal COVID stimulus checks went out all the way in which again in March of 2021, and the expanded youngster tax credit score was phased out on the finish of final yr. By early this yr, it appeared that youngster poverty was rising once more, and plenty of Individuals reported not having 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 concern of a recession — additionally loom massive for lower-income households.
So whereas simply 7.8 p.c of Individuals residing in poverty counts as a coverage victory, anticipate that quantity to be increased subsequent yr.
Further 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 US: 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 revenue questions.
