Poverty Rate Rises for Second Year in Row
Fri Sep 26,12:50 PM ET
story.news.yahoo.com
By GENARO C. ARMAS, Associated Press Writer
WASHINGTON - Poverty rose and income levels declined in 2002
for the second straight year as the nation's economy continued
struggling after the first recession in a decade, the Census Bureau reported Friday.
The poverty rate was 12.1 percent last year,
up from 11.7 percent in 2001. Nearly 34.6
million people lived in poverty, about 1.7
million more than the previous year.
Median household income declined 1.1
percent between 2001 and 2002 to $42,409,
after accounting for inflation. That means half
of all households earned more than that
amount, and half earned less.
The poverty rate rose again after having fallen for nearly a decade to 11.3
percent in 2000, its lowest level in more than 25 years. Income levels
increased through most of the 1990s, then were flat in 2000 and fell the
last two years.
Bill Spriggs, director of research and public policy at the National Urban
League, said the numbers were frightening. "This may become one of
the worst downturns in income in 30 years," he said. "We see that
people are digging themselves deeper into poverty because the economy
is not generating jobs."
Experts had predicted that rising unemployment last year and the still
shaky economy would increase poverty and lower income for most
people, even though the recession officially ended in November 2001.
Bureau statistician Daniel Weinberg said the changes between 2001 and
2002 were consistent with changes following past recessions.
"The highest point in the cycle of poverty and the lowest point in income
tend to come in the year after a recession," he said at a news
conference at bureau headquarters in Suitland, Md.
In 2002, 12.1 million children were in poverty, or 16.7 percent of all kids,
up from 11.7 million, or 16.3 percent, the previous year. The Census
Bureau said the increase in the child poverty rate was not statistically
significant.
The estimates, calculated annually by the Census Bureau, came from a
survey of 78,000 households taken in March. They are the government's
official measure of income and poverty.
Comparing poverty rates and income for racial and ethnic groups was
more difficult in 2002 because the Census Bureau for the first time
allowed survey respondents to report if they were of more than one race.
For instance, the poverty rate for blacks in 2002 ranged from 23.9
percent for those who identified themselves as being black and another
race, to 24.1 percent for those who selected only black.
Measured either way, the bureau considered that a significant increase
from 2001, when 22.7 percent of blacks lived in poverty.
Poverty rates remained relatively unchanged for non-Hispanic whites,
Asians and Hispanics, the bureau said.
Median income fell for blacks and Hispanics, but was relatively
unchanged for whites. Income was highest among whites and Asians.
Incomes also declined significantly for foreign-born non-citizens, people
living in metropolitan areas and for family households. By region, the
Midwest experienced a significant decline, while all other regions were
relatively unchanged.
The poverty threshold differs by the size and makeup of a household. For
instance, a person under 65 living alone in 2002 was considered in
poverty if income was $9,359 or less; for a household of three including
one child, it was $14,480.
A separate Census Bureau survey released earlier
this month also showed more people living in poverty
in 2002, along with a slight increase in median
income. However, that survey did not ask as detailed
a series of questions on people's financial status.
Even before the data was made public, House
Democrats charged the Bush administration was
trying to hide bad economic news by releasing the
numbers on a Friday when people are paying more
attention to the upcoming weekend. In previous
years, the estimates were released on a Tuesday or
Thursday.
"Sounds like they're trying to bury the numbers
where people won't find them," said Rep. Carolyn
Maloney, D-N.Y. "This is another clear example of
political manipulation of data by the Bush
administration to avoid the glare of public scrutiny
about the country's worsening economy."
Census Bureau spokesman Larry Neal said the time
change wasn't politically motivated. It was originally
scheduled to be released this past Tuesday, he said,
but was moved to Friday because statisticians asked
for more time to process the numbers.
"These are the official estimates of income and
poverty in America and every debate on income and
poverty for the next year will rehash them," Neal
said. "The notion that we should, could or would
suppress these numbers doesn't pass the laugh
test."
___
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