Term Paper on "Poverty the Extent"

Term Paper 4 pages (1553 words) Sources: 3 Style: APA

[EXCERPT] . . . .

POVERTY

the extent of Poverty in the United States:

According to the statistics released by the Current Population Survey -- CPS, 2007, Annual Social & Economic Supplement -- ASEC based on the sample survey of 100000 across U.S., the official poverty rate during 2006 was 12.3% marginally down from 12.6% in the year 2005. During the year 2006, 36.5 million people were poverty stricken which is almost the same as that of the year 2005. The poverty rates during 2006 remain unaltered for non-Hispanic Whites which is 8.2%, Blacks which is 24.3% and Asians which is 10.3% from 2005. The poverty rates came down for Hispanics from 21.8% in 2005 to 20.6% in 2006. Since the latest low in 2000, the rate climbed for four years consequently, from 11.3% in 2000 to 12.7% in 2004, and then dropped to 12.3% in 2006. This rate is not statistically distinct from those in 2002 and 2003 which is 12.1% and 12.5%, respectively. In case of children below the age of 18 years and people in the age bracket of 18 to 64 years, the poverty rates are 17.4% and 10.8% respectively and the figures in poverty 12.8 million and 20.2 million respectively stayed statistically constant from 2005. The rate of poverty as well as the number of people in poverty declined in case of people aged 65 years and older. The percentages are 9.4 and 3.4 million in 2006, down from 10.1% and 3.6 million in 2005. ("Poverty: 2006 Highlights," 2007)

In consonance of the Office of Management and Budget's -- OMB Statistical Policy Directive 14, the Census Bureau applies fixed money income thresholds which differ by family size and composition to calculate the people those who are poverty stricken. In case a family's net income is less than the family's threshold, then that family and every individual in it is said to be in poverty. The official poverty thresholds does not differ geographically, however they are modified with latest figures considering inflation by applying Consumer Price Index. The official poverty definition applies money income before taxes and does not cover capital gains or non-cash benefits like public housing, Medicaid, and food stamps. ("How the Census measures poverty: Official measure," 2007)

2) What would you do to rid of Poverty in U.S.

Since the problem of poverty has been expressed by individuals who believe that it puts elementary and basic issues for our society, it is exemplified by a certainty that considerable number of people is present in the U.S. who has been excluded from the mainstream of American economic life. This type of debate the definite possibility of extensive numbers of individuals finding themselves impoverished in the midst of affluence and speedier economic growth. To put it differently, it maintains that considerable numbers of people are found who are not sharing the generosity which is being produced by our economic system. Latest data suggest that incomes of a lot of subgroups of American economy have not progressed in unanimity with the income levels within the economy. The subgroups that have been found out are families in which the head of the family's age is 65 years or more, who is a lady, or is categorized as residing in the rural sector of the economy. (Gallaway, 1966)

Nearly every poverty mitigating organization is presently in the business of managing federal, states and local grants. As any organization ought to be, they have the intention regarding remaining in business so as to keep on helping people. This is performed mainly through securing grants to restructure the impact of poverty. It is extremely intricate, to locate organization who are keen regarding lifting people completely out of poverty or who have a distinct plan to change their communities systematically enough to finally eradicate poverty from the American society. Almost 1,000 community action agencies were set up by President Johnson' War on poverty. These agencies happen to be the consistent organization to spearhead the nation in an effort to end poverty. Nevertheless, like a lot of others are busy in managing services rendered through federally designed grants. It is fact that overdependence solely is never going to eliminate poverty. (Miller, 2007)

Poverty can only be eliminated when sufficient people in our communities are committed to it. The strategies of the government must be concentrated on facilitating novel relationships among all members of the community particularly new relationships between the affluent and the poor. Apart from that, the American people must be fearless in making and experimenting innovative, high-impact strategies that are focused on the results and driven on data. It is believed that community action agencies are among the important organizations in making a dedication at the national level for elimination of poverty. Hence, since the year 2000 till the present working on two strategies will help in the reduction of poverty (i) assisting organizations to grow long-term change plans which cover innovative strategies of high impact concentrated on elimination of poverty. (ii) Redefining the responsibility of community action agency to involve the community in ending poverty through building significant relationships across class lines. It is important to cover faith communities, school districts, and rural communities who are keen to become leaders in this crusade to willfully deal the problem of poverty on a local level. Means to eliminate poverty has to be carried out through an agenda to eliminate poverty within the communities, understanding that this will span for a number of years of their leadership to make preparations through a detailed process for developing and executing a long-range transformational plan. Under the new plan, the community has to be engaged in high-impact strategies which alter the mindset of the public such that sufficient citizens will desire to perform whatever is needed in order to end poverty. (Miller, 2007)

3) How would eliminating poverty affect the U.S. Economy?

It is a fact that consistent economic growth will help in the elimination of poverty. The American free market system stresses on private ownership. Private businesses manufacture majority of the goods and services, and nearly two-thirds of the nation's net economic production goes to the individuals for individual use while the rest one-third is purchased by government and business. The importance on private ownership comes to the forefront, partly, from the American consciousness regarding personal freedom. Since the period of creation of the nation, American have feared too much governmental power and they have looked for limiting governmental authority over people inclusive of its role in the economic sphere. Apart from that, it is a belief in American societies that an economy which has private ownership has increased chances to function more proficiently compared to one with sufficient government ownership and hence eliminating poverty will have a positive effect on the U.S. economy. ("How the U.S. Economy works," n. d.)

The question might come as to why this is necessary. This is because when economic forces are free, the people of America believe that supply and demand govern the prices of goods and services. Prices, in their effect, push businessmen what to produce, in case people desire more of a particular article compared to what the economy is generating, the price of the good goes up. That attracts the attention of recent and other companies which, looking for an opportunity to look for profits, start production of more of that particular article. On the contrary, in case people desire less of the goods, prices drop and less competitive manufactures are driven out of their business or begin production of different goods. That type of system is known as a market economy which has built-in features for reduction of poverty. On the other hand, a socialist economy has more government ownership and central planning authority. Majority of the Americans are convinced that socialist economies are less productive from… READ MORE

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