Poverty Myths Busted: The US Has No Poverty
Poverty Myths Busted: The US Has No Poverty
FALSE!
With the vision of the United States as the richest country in the world, the poverty myth that there is little or no poverty is all too common. In fact, the United States has one of the highest poverty rates in the developed world. One study ranked the United States 29 of 31 OECD countries in 2012.[1] When it comes to child poverty, things are even worse. A UNICEF report found that the United States ranked 34 of 35 developed countries – only Romania had a higher child poverty rate.[2]
It can be surprising to find so much poverty in a country often thought of as the wealthiest nation in the world. If the per capita gross domestic product of the United States is over $54,000, then why do one in six Americans live below the poverty level, which is as low as $11,700 for a single person, or $24,250 for a family of four?[3]
The answer is inequality.
The high levels of inequality in the United States explain the odd numbers. The United States is the most unequal developed nation in the world.[4] The wealthiest 400 American families have more wealth than the poorest 50% of Americans combined.[5]
It is interesting to note, however, that when comparing income inequality before taxes, the US is similar to most other developed nations, and even ranks less unequal than countries like Sweden or Denmark.[6] While those countries use their tax code to reduce income inequality and fund social programs, however, we in the United States have lower tax rates and as a result do comparatively little to address inequality.
Sources:
[1] https://data.oecd.org/inequality/poverty-rate.htm - retrieved on February 26, 2018;
[2] https://www.unicef-irc.org/publications/pdf/rc10_eng.pdf retrieved on February 23, 2018;
[3] http://aspe.hhs.gov/2015-poverty-guidelines retrieved on October 19, 2015;
[4] ibid;
[5] http://www.politifact.com/wisconsin/statements/2011/mar/10/michael-moore/michael-moore-says-400-americans-have-more-wealth-/ retrieved October 26 2015 ;
[6] http://www.newyorker.com/news/john-cassidy/american-inequality-in-six-charts - retrieved on October 26 2015