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Poverty on the rise in US: report
Posted on Tuesday, August 26, 2008 (EST)
More than 37 million Americans live in poverty and nearly 46 million have no health insurance, an official report showed Tuesday, spotlighting two key issues in the race for the presidency.
 
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Men eat free lunch at the Holy Apostles Soup Kitchen
© AFP/Getty Images/File Mario Tama

WASHINGTON (AFP) - Some 37.3 million people lived in poverty in the United States in 2007, an increase from the 36.5 million people in 2006, the US Census Bureau's annual report on income, poverty and health insurance coverage showed.

The poverty threshold for 2007 was set at 21,000 dollars (14,360 euros) for a family of four, regardless of whether they lived in a smaller US city such as Milwaukee or a large city like Los Angeles, where the cost of living was significantly higher.

"The number of people without health insurance coverage decreased to 45.7 million people in 2007" from 47 million in 2006, said David Johnson, head of the housing and household economic statistics division of the Census Bureau.


Volunteers prepare meals at the Holy Apostles Soup Kitchen
© AFP/Getty Images/File Mario Tama

But while the report showed slightly more Americans had health coverage than in 2006, the changes were too little to cheer about, said Paul Fronstin, a senior research associate at the Employee Benefits Research Institute.

"Generally, what the report shows is that there has been some change but it's pretty minor," said Fronstin, of the Washington-based think-tank.

"This isn't progress. The changes are insignificant and we would need to see this happen for 10 years to say there has been progress," he said.

According to a report published earlier this year by the Annie E. Casey Foundation, which advocates for public policies and reforms to alleviate poverty, both the Democratic and Republican parties have made the "fight against poverty a priority in their campaigns."


Sister Gioconda Gaglianone looks over the shelves of donated food at the Capitol Area Foodbank
© AFP/File Paul J. Richards

And a survey released this month by the non-profit Commonwealth Fund showed that an overwhelming majority of Americans -- 82 percent -- think the US health care system is in need of a complete overhaul.

Nine out of 10 Americans want the 2008 presidential candidates to address health care reform, the same survey showed.

People who were already "living on the margin" when the 2007 report was compiled could well have fallen over into poverty this year, but their situation will not be reflected until the next annual report on income, poverty and health insurance is issued one year from now, said Fronstin.

"You have to remember that the numbers in the report are from last year. This year, Americans have been faced with record-high gasoline prices and rising food prices. Unemployment is also up, meaning fewer Americans have access to employer health benefits," he said.


Tony Patterson (R) pushes a cart of food from the Daily Bread Food Bank as he helps load up a van
© AFP/Getty Images/File Joe Raedle

Children are disproportionately affected by poverty, the report showed.

Eighteen percent of children in the United States lived in poverty, compared with 11 percent of adults, aged 18-64, and just under 10 percent of senior citizens.

More Americans aged 65 years and older would be pushed into poverty if they did not receive Social Security benefits, the report showed.

"In 2006, the number of poor elderly people would be higher by 12.6 million people if Social Security payments were excluded from money income, more than quadrupling the number of poor elderly," said Johnson.

Comparable statistics for 2007 will be issued later this year.

The poorest region of the United States was the south and Mississippi was the poorest state in the union. One in five people -- 20.6 percent -- in the southern state lived in poverty in 2007.

The Census Bureau bases its annual report on data gathered last year for the American Community Survey (ACS) and the Current Population Survey (CPS).

©AFP

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