Poverty in the United States
Poverty in the United States is a prevalent social and economic crisis. Poverty USA estimates that as of 2018, there were 38.1 million people, or 11.8% of the population, living in poverty. The Federal government has set $25,700 as the poverty threshold for a family of four, and many Americans are living in far less than this amount. After reviewing the video and article sources on poverty in the country, one thing is clear – debt is unavoidable for millions of people.
The poor are not employed, as is commonly thought. Those living in poverty hold jobs multiple times. The reality is that the minimum wage in the United States is inadequate for living above poverty due to the high cost of living. Once individuals pay their rent, loans, utility bills, and buy food, there are barely left with anything. This indicates that many Americans are a single paycheck away from losing their standard of living.
Many factors have pushed people in different parts of the country to poverty. The deindustrialization of cities is one such factor. Dayton, Ohio, is an example of how devastating the loss of industries can be to a population. Since the 1980s, Dayton, which was once an innovation hub, has experienced a significant decline in its economy after numerous manufacturers, such as GM Motors, shut shop and moved elsewhere.
Hundreds of thousands in Dayton became unemployed, which led to a drastic decline in the city’s economy. Those who could move out of the town in search of employment and investors pulled out, causing even more job losses. The shutting down of major businesses in the city resulted in the people of Daytona living in a food desert with no grocery shop insight to but fresh food. This is an example of how economic changes can thrust people into poverty.
Another factor for driving millions into poverty is the Great Recession of 2007/2008. While the economy has been able to recover from what is arguably one of the worst financial crises in America’s history, many people have never been able to escape the clutches of poverty over a decade later. The recession caused a rise in unemployment and a collapse in the housing market. Foreclosures became the norm as many people were unable to pay their mortgages. While many people blamed themselves, it was clear that there was a systematic problem.
Despite unemployment returning to pre-recession rates, wages for American workers have remained stagnant, yet the cost of living continues to rise. Fuyao Glass Industry, the corporation that took over the General Motors plant in Daytona, pays its workers a starting salary of $12 per hour. At the height of its productions, General Motors paid many of these same workers as much as $35 per hour. Americans are now forced to work multiple jobs in order to stay above the poverty line. Moreover, upward income mobility has become increasingly more unattainable.
Becoming poor in America is easier than ever before. Structural factors beyond the control of individuals, such as the economy and deindustrialization, are the reasons why so many Americans are living in poverty today. Economic inequality and discrimination only work to aggravate the crisis by driving more people into poverty and making it increasingly difficult to leave poverty.