WASHINGTON (AP) — The ranks of America’s poorest poor have climbed to a
record high — 1 in 15 people — spread widely across metropolitan areas as
the housing bust pushed many inner-city poor into suburbs and other outlying
places and shriveled jobs and income. New census data paint a stark portrait
of the nation’s haves and have-nots at a time when unemployment remains
persistently high. It comes a week before the government releases first-ever
economic data that will show more Hispanics, elderly and working-age poor
have fallen into poverty.
In all, the
numbers underscore the breadth and scope by which the downturn has reached
further into mainstream America.
“There now
really is no unaffected group, except maybe the very top income earners,”
said Robert Moffitt, a professor of economics at Johns Hopkins University.
“Recessions are supposed to be temporary, and when it’s over, everything
returns to where it was before. But the worry now is that the downturn —
which will end eventually — will have long-lasting effects on families who
lose jobs, become worse off and can’t recover.”
Traditional
inner-city black ghettos are thinning out and changing, drawing in
impoverished Hispanics who have low-wage jobs or are unemployed.
Neighborhoods
with poverty rates of at least 40 percent are stretching over broader areas,
increasing in suburbs at twice the rate of cities. Once-booming Sun Belt
metro areas are now seeing some of the biggest jumps in concentrated
poverty.
About 20.5
million Americans, or 6.7 percent of the U.S. population, make up the
poorest poor, defined as those at 50 percent or less of the official poverty
level. Those living in deep poverty represent nearly half of the 46.2
million people scraping by below the poverty line. In 2010, the poorest poor
meant an income of $5,570 or less for an individual and $11,157 for a family
of four.
That 6.7 percent
share is the highest in the 35 years that the Census Bureau has maintained
such records, surpassing previous highs in 2009 and 1993 of just over 6
percent.
Broken down by
states, 40 states and the District of Columbia had increases in the poorest
poor since 2007, and none saw decreases. The District of Columbia ranked
highest at 10.7 percent, followed by Mississippi and New Mexico. Nevada had
the biggest jump, rising from 4.6 percent to 7 percent.
Concentrated
poverty also spread wider.
After declining
during the 1990s economic boom, the proportion of poor people in large
metropolitan areas who lived in high-poverty neighborhoods jumped from 11.2
percent in 2000 to 15.1 percent last year, according to a Brookings
Institution analysis released Thursday. Such geographically concentrated
poverty in the U.S. is now at the highest since 1990, following a decade of
high unemployment and rising energy costs.
Extreme poverty
today continues to be prevalent in the industrial Midwest, including
Detroit, Grand Rapids, Mich., and Akron, Ohio, due to a renewed decline in
manufacturing. But the biggest growth in high-poverty areas is occurring in
newer Sun Belt metro areas such as Las Vegas, Riverside, Calif., and Cape
Coral, Fla., after the plummeting housing market wiped out home values and
dried up construction jobs.
As a whole, the
number of poor in the suburbs who lived in high-poverty neighborhoods rose
by 41 percent since 2000, more than double the growth of such city
neighborhoods.
Elizabeth
Kneebone, a senior research associate at Brookings, described a demographic
shift in people living in high-poverty neighborhoods, which have less access
to good schools, hospitals and government services. As concentrated poverty
spreads to new areas, including suburbs, the residents are now more likely
to be white, native-born and high school or college graduates — not the
conventional image of high-school dropouts or single mothers in inner-city
ghettos.
The more recent
broader migration of the U.S. population, including working- and
middle-class blacks, to the South and to suburbs helps explain some of the
shifts in poverty.
A study by the
Joint Center for Political and Economic Studies found that the population of
133 historically black ghettos had dropped 36 percent since 1970, as the
U.S. black population growth slowed and many blacks moved to new areas. The
newest residents in these ghettos are now more likely to be Hispanic, who
have more than tripled their share in the neighborhoods, to 21 percent.
Just over 7
percent of all African-Americans nationwide now live in traditional ghettos,
down from 33 percent in 1970.
“As
extreme-poverty neighborhoods emerge in more places, that is shifting the
general makeup of those populations,” said Kneebone, the lead author of the
Brookings analysis.
New 2010 poverty
data to be released next week by the Census Bureau will show additional
demographic changes.
The new
supplemental poverty measure for the first time will take into account
non-cash aid such as tax credits and food stamps, but also additional
everyday costs such as commuting and medical care. Official poverty figures
released in September only take into account income before tax deductions.
Based on newly
released estimates for 2009, the new measure will show a significant jump in
overall poverty. Poverty for Americans 65 and older is on track to nearly
double after factoring in rising out-of-pocket medical expenses, from 9
percent to over 15 percent. Poverty increases are also anticipated for the
working-age population because of commuting and child-care costs, while
child poverty will dip partly due to the positive effect of food stamps.
For the first
time, the share of Hispanics living in poverty is expected to surpass that
of African-Americans based on the new measure, reflecting in part the lower
participation of immigrants and non-English speakers in government aid
programs such as housing and food stamps. The 2009 census estimates show
27.6 percent of all Hispanics living in poverty, compared with 23.4 percent
for blacks.
Alba Alvarez,
52, a nanny who chatted recently in Miami, said she is lucky because her
employer rents an apartment to her and her husband at a low rate in a
comfortable neighborhood on the bay. But her adult children, who followed
her to the U.S. from Honduras, are having a tougher time.
They initially
found work in a regional wholesale fruit and vegetable market that supplies
many local supermarkets. But her youngest son recently lost his job, and
since he has no legal status, he cannot get any help from the government.
“As a mother, I
feel so horrible. There’s this sense of powerlessness. I wanted things to be
better for them in this country,” Alvarez said. “I (recently) suggested my
youngest go back to Honduras. It’s easier for me to help him there than
here, where rent and everything is so expensive.”
www.census.gov