CFED Assets & Opportunity Scorecard
Income Poverty Rate
Definition
Percentage of households with income below the federal poverty threshold, 2011.
Description
Income poverty is a fundamental indicator of financial insecurity and instability. If an individual’s or a family’s total income is below the poverty threshold, then they are considered poor. Official poverty estimates are calculated each year by the Census Bureau using a set of income thresholds that vary by family size and composition.
For years, poverty experts and researchers have contended that the official poverty measure is misleading and does not reflect the full amount of income that a family needs to live. The official measure was developed about a half-century ago and is based on the assumption that families spend one third of their after-tax income on food. Two of the most common criticisms of the official poverty measure are that it doesn’t account for government benefits like food stamps and the Earned Income Tax Credit and differences in the cost of living across locations.
In 2011, the Census Bureau released a supplemental poverty measure to address many of these criticisms. Click here to read more about the supplemental measure and how it differs from the official measure.
Income Poverty Rate
Source
2011 American Community Survey. Washington, DC: U.S. Department of Commerce, Census Bureau, 2012.
Note: The Census Bureau recommends using the ACS for single-year estimates of income and poverty at the state level.
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