Defining poverty in the United States is a complex task involving various metrics and variables. In 2022, the US Census Bureau reported that around 37.9 million people, or 11.5 percent of the population, lived in poverty, showing no significant change from the previous year. However, a closer look at the data reveals significant shifts in poverty rates among different demographic groups.
Child poverty rates saw a rapid increase after the expanded Child Tax Credit (CTC) payments ended. The American Rescue Plan provided this support, benefiting 24 million additional families with monthly payments from July to December 2021. When the CTC payments ceased, the poverty rate for households with children jumped from under ten percent to nearly sixteen percent within a year. Many experts attribute this increase to inflation eroding the purchasing power of households.
When measuring poverty in the United States, the US Census Bureau compares family income to the poverty threshold, which varies based on household size and age. For instance, in 2022, the poverty threshold for a single individual under sixty-five was set at $15,225, while a family of four, consisting of two adults and two children, had a poverty threshold of $29,678……..[read more]
As a student interested in business and economics, consider the impact of rising child poverty rates on consumer behavior and the broader economy. How might an increase in child poverty affect businesses and marketing strategies? What role do government policies, such as the Child Tax Credit, play in addressing these economic challenges, and how do they influence the dynamics between investors, shareholders, and consumer welfare?
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