Poverty Still Rising Because of Slow Economic Recovery
According to a study, since the recession began in 2007-2009 there are still almost ten million more people in the United States in poverty. The bad news is that the number is expected to go up because of the slow pace of the recovery. In 2006, there were thirty six point five million people living in poverty and by 2010 there were forty six point two million people. This is an increase of twenty-seven percent. In addition, the population in the United States increased three point three percent.
Besides poverty increasing because of the slow economic recovery pace, there is also the long duration of unemployment and the high rate of unemployment to figure into the equation. The official rate of unemployment seems to be declining but that could just be due to the fact that many of the unemployed adults are just giving up in regards to looking for a job. But in actuality, the ratio of working age adults to employed people has only improved a little since June 2009 when the recession ended.
If the unemployment insurance benefits are lost for the long term unemployed before there are enough well paying jobs produced by the economy, the “new poor” ranks will continue to increase on a steady basis through 2017. Many of the people in this new class of “new poor” are what were classified as former middle class people. At this time, for a family of four in the United States with two children the poverty line is twenty-two thousand one hundred thirteen a year.