U.S. poverty rises after long decline
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WASHINGTON — The number of Americans living in poverty increased for the first time in eight years in 2001, and the nation's median household income declined, the U.S. Census Bureau reported yesterday.
Both bits of bad news stemmed from the recent recession. The last time both measures sank simultaneously was 1993, when the economy was also recovering from recession.
Nationally, the number of poor people jumped from 31.6 million in 2000, or 11.3 percent of the U.S. population, to 32.9 million in 2001, or 11.7 percent.
A family of four was considered to live in poverty in 2001 under federal guidelines if its annual income was less than $18,104. Comparable figures were $14,128 for a family of three, $11,569 for a family of two and $9,039 for unrelated individuals.
The median household income — half of all U.S. households earn more and half less — dropped $900, or 2.2 percent, to $42,228 in 2001. It was the second straight year that the earnings measure has declined.
All regions of the country experienced declining income except the Northeast, where income was unchanged. The findings are estimates based on a Census Bureau survey of 78,000 households in March.
In perspective, the numbers announced for poverty and income remained near all-time bests. For example, the household income figures, even after adjustment for inflation, were higher than in all years before 1999, and the poverty rate was lower than in every year of the 1980s and 1990s. (The poverty rate of 11.3 percent, recorded in 2000, was the lowest level since 1974.)
Perhaps surprisingly, last year's economic downturn hit non-Hispanic whites the hardest. Their poverty rate, while it remains the lowest among all racial groups, nevertheless rose the most, from 7.4 to 7.8 percent, or 15.3 million people.
The recession's disproportionate impact on non-Hispanic whites is "a little bit unusual historically," said Daniel Weinberg of the Census Bureau. "But because they're the largest (racial) group, you're more likely to be able to find a statistically significant change for them than for other groups."
Poverty remained highest for blacks at 22.7 percent, up slightly from a historic low of 22.5 percent in 2000. The Hispanic poverty rate of 21.4 percent last year was an all-time low.
Poverty among Asians and Pacific islanders jumped from 9.9 percent in 2000 to 10.2 percent last year.
Median income for women increased 3.5 percent to $29,215, while men saw no change in earnings at $38,275. It was the fifth straight year that women's earnings have increased, and pushed the female-to-male earnings ratio to an all-time high of 76 percent.
While the broad patterns fit with past recessions, some were struck by new evidence that the poor are trailing further behind the rest of society than in the past. Those classified as poor on average fell further below the poverty line than in any year since 1979.
By some measures, the rich in 2001 remained just about as much richer than the poor. Yet 2001 was the first year in which the richest 20 percent of Americans earned more than half the nation's total personal income. The share of income going to the poorest Americans declined.
"The poor did become poorer in 2001," said Robert Greenstein, executive director of the Center on Budget and Policy Priorities, a liberal think thank in Washington.
