How do we know how many poor people there are in the United States? What are some criticisms of the poverty line? Why is it important to know how many poor people there are in the country?

Question

What will be an ideal response?

Answer 1

An ideal response will:
1, Indicate how it is necessary to know the dividing line between adequate and inadequate living standards. The poverty line was determined by the Census Bureau beginning in 1964 to determine the necessary amount of income to feed a family of four. This amount was then multiplied by three. This figure has been adjusted for inflation ever since.
2, List and discuss the criticisms of the poverty line as an indicator of the number of people in poverty. Most American households spend a lower percentage of their income on food today than they did in 1964, so the multiplier (3) may be much too low. Conservatives argue that various government assistance funding should be included as income. The poverty line does not address cost of living disparities across the country. For example, a family with a given income might be considered poor in expensive areas of New York or California, but they might scrape by in Mississippi or Alabama.
3, Explain the importance of knowing the number of poor people. For example, it is important to understand whether the number of poor people is increasing or decreasing. This provides an indication of whether government and/or private charities need to help those in need. It also offers some indication of the scope of government funding for programs including Medicaid and food stamps. States, counties, and cities receive funding based on the number of poor people residing within a geographic area.