Sunday, September 22, 2013

It's no longer 1962

America and the rest of the world has changed a lot in the past 51 years.  In 1962 you could walk to work, now you drive. Mother stayed home and took care of the children, now both parents work and pay for childcare.  You spent about one-third of your income on food, now you spend less than 10%.  The calculations that resulted in the poverty line of 1962 ($11,060 for a family of two) are the same that are used today ($15,510) with inflation added.

Furthermore, the calculations are based on a USDA diet designed to reflect what a family living for a short period of time on a severely constrained budget might need to get by, rather than a family’s diet over the long-term. Nor does it take into account the variations in costs across the states. The Economic Policy Institute has developed a family budget calculator which estimates how much it costs a family to live in every American city.  The costs for a family of two can range from $42,000 (Mississippi) to $69,000 (NYC). 

Isn't it time to change our definitions of the poverty line?

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