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Rural Poverty in America Documentary: The United States and the War on Poverty (1/2) (1965)
Poverty in the United States is cyclical in nature with roughly 13 to 17% of Americans living below the federal poverty line at any given point in time, and roughly 40% falling below the poverty line at some point within a 10-year time span. Poverty is defined as the state of one who lacks a usual or socially acceptable amount of money or material possessions.
However, the government's definition of poverty is not tied to an absolute value of how much an individual or family can afford, but is tied to a relative level based on how much the average individual makes. Most Americans (58.5%) will spend at least one year below the poverty line at some point between ages 25 and 75. There remains some controversy over whether the official poverty threshold over- or understates poverty.
The most common measure of poverty in the United States is the "poverty threshold" set by the U.S. government. This measure recognizes poverty as a lack of those goods and services commonly taken for granted by members of mainstream society. The official threshold is adjusted for inflation using the consumer price index.
Relative poverty describes how income relates to the median income, and does not imply that the person is lacking anything. In general the United States has some of the highest relative poverty rates among industrialized countries, reflecting both the high median income and high degree of inequality. In terms of pre-transfer absolute poverty rates, in 2000 the United States ranked tenth among sixteen developed countries, though 2000 was a 'trough' year and subsequently absolute poverty rates have increased. The US does worse in post-transfer absolute poverty rates. According to a 2008 report released by the Carsey Institute at the University of New Hampshire, on average, rates of poverty are persistently higher in rural and inner city parts of the country as compared to suburban areas. The number of people in the U.S. who are in poverty is increasing to record levels with the ranks of working-age poor approaching 1960s levels that led to the national war on poverty.
The official number of poor in the United States in 2008 is about 39.1 million people, greater in number but not percentage than the officially poor in Indonesia, which has a far lower Human Development Index and the next largest population after the United States. The poverty level in the United States, with 12.65% (39.1 million people in poverty, of a total of 309 million) is comparable to the one in France, where 14% of the population live with less than 880 euros per month.
Number of poor are hard to compare across countries. Absolute income may be used but does not reflect the actual number of poor, which depend on relative income and cost of living in each country. Among developed countries, each country then has its own definition and threshold of what it means to be poor, but this is not adjusted for cost of living and social benefits. For instance, despite the fact that France and US have about the same threshold in terms of dollars amount for poverty, cost of living and health benefits may differ (with universal health insurance coverage for poor people in France). In general, it might be better to use the Human Poverty Index (HPI), Human Development Index (HDI) or other global measure to compare quality of living in different countries.
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