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Speak Out
How does the high poverty rate affect you?
Take a look around your classroom. Chances are several of your
classmates’ families are not doing as well as they were a few years ago.
Because of the bad economy, chances are also pretty high that your
family has had to make some tough decisions when it comes to money.
The recession, now in its third year, has pushed the nation’s poverty
rate to a 15-year high. Poverty, defined by the U.S. Census Bureau, is
when a family’s yearly income is lower than the family’s threshold. In
simple English, poverty is when a family makes less money than it spends
on basics such as food, utilities, housing, and other necessities. For a
single adult, the poverty line was $10,830 in pretax cash income; for a
family of four, $22,050.
The poverty rate climbed to 14.3 percent in 2009, according to the U.S.
Census Bureau. That means that one in seven people, or 43.6 million, is
living in poverty, the highest since 1994. The number of children living
in poverty had the highest increase, with one in five of those under 18
living in poverty.
At the same time, the number of people covered by health care insurance
fell. The number of people who have private health care insurance,
mostly through their employers, fell from 201 million in 2008 to 194.5
million in 2009. The number of people with health insurance is a good
indicator of how things are for small businesses. The recession has hit
small businesses pretty hard, and they have to get rid of health
insurance for their employees to stay in business.
| So what happens to families when they can’t make ends meet? Various government agencies have relief programs that are meant to provide a safety net and help families get back on their feet. The Department of Housing and Urban Development has several programs, including assistance on housing payments. The Department of Health and Human Services
(HHS) offers assistance in helping people get back to work and find
jobs. HHS also is responsible for the welfare program, which offers
monetary assistance to poor families.
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"The economic downturn exacerbated the steady erosion over the past
decade in the number of people with employer-provided health coverage –
erosion caused by the unaffordable costs of health care for America's
businesses," said Ron Pollack, of Families USA, a health-care advocacy
group in a Reuters interview.
What does this mean for you? Depending on where you live, where you go
to school, whether anyone in your family has lost a job, and how much
your family makes, it could mean a whole lot. The U.S. Census Bureau’s
statistics show that the economic downturn has hit people at the lower
income levels the hardest. The construction industry is one type of
business that has been hit hard because the recession started with the
collapse of the housing market, meaning fewer people are building new
homes and therefore fewer construction jobs are out there. Manufacturing
and other labor jobs have also been affected by the recession more than
other businesses.
Also, less income for families means less tax revenue for governments.
This means that if you go to public school, your school budget is
probably tighter, which may result in cuts to after-school programs and
athletics, older textbooks, and bigger classes.
Overall, things are looking bleak. Bu t throughout history, the economy
has cycled through strong and weak periods. And politicians and policy
makers are trying to come up with ways to make the economy strong again.
(For more information on the economy, read the Speaks Outs ‘What do you think about President Obama’s plans to help the economy?’ and ‘What do you think of Obama’s transit and jobs plan?’)
What do you think?
How has the recession affected you and your family? How has it affected
your community and school? What are the long-term effects of a
recession? How should the government respond? Join the discussion and
let us know what you think!
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