Incomes in U.S. drop, poverty rises; Americans making less for first time in a decade
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Census: Americans making less for first time in a decade
MSNBC STAFF AND WIRE REPORTS
Sept. 24 — In another sign of significant recession, U.S. households earned more than 2 percent less last year and more Americans fell below the poverty line, new Census data show. The drop in median household income to $42,228 was the first in a decade.
REAL MEDIAN INCOME tumbled 2.2 percent from its 2000 level, according to Census statistics released Tuesday, while the poverty rate rose from 11.3 percent in 2000 to 11.7 percent. While not a profound change, bureau analysts linked the change to the recession that began in spring of last year.
It meant hard times for more Americans, with 32.9 million falling below the poverty line, 1.3 million more than the previous year. Some 6.8 million families were considered poor, up from a record low in 2000.
White, non-Hispanic Americans’ incomes dropped 1.3 percent last year, the first drop since 1990-91, while black Americans saw their paychecks shrink by 3.4 percent — the first drop in 20 years. Hispanic incomes were unchanged, and Asian Americans faced a trim of 6.4 percent from their incomes.
Americans living in and near cities found their incomes down by 1.6 percent, while those outside metropolitan areas saw no change — though at $33,601 the media non-urban income remained well below the urban average of $45,219.
NORTHEAST, WEST MAKE THE MOST
Median income refers to the point at which half of households earn more and half earn less.
The Northeast remained the area with the highest incomes — a median of $45,716 — followed closely by the West, at $45,087. The South had the smallest income levels, with an average of $38,904.
Daniel Weinberg, chief of the Census Bureau’s economic statistics division, said every region saw a decline in median household income except the Northeast, where it was flat.
Income actually rose in three states — Arizona, Massachusetts and Pennsylvania — but declines in 12: Alabama, Florida, Illinois, Indiana, Iowa, Maine, Michigan, Mississippi, Tennessee, Vermont, Washington and Wisconsin.
The figures were based on the bureau’s most recent annual compilation of income statistics, not the decennial 2000 census.
‘LOT OF WORK TO DO’
While poverty rates remained at historic lows for black and Asian Americans, poverty among white Americans rose, reaching 7.8 percent, or 15.3 million, as it did for Hispanics. The only group to show a drop in poverty were American Indian and native residents, though nearly one-quarter remain under the poverty line.
The poverty threshold differs by the size of the household. The bureau calculated that for a family of four, the level in 2001 was $18,104, up from $17,603.
The figures come from a survey of 78,000 households taken in March. Census officials say all the figures are estimates that could vary slightly from actual values.
President Bush, addressing the overall economy, said after a Cabinet meeting Tuesday that he remained upbeat.
“We got the best workers in the world. Inflation’s down. Interest rates are low,” the president said. “But I understand we got a lot of work to do. And we will. We will continue to work hard to make sure that people can find work.” |
