Question

How do government statisticians determine the poverty rate? How could the poverty rate fall while the number of people in poverty rises? Which group in each of the following paris has the higher poverty rate: (a) children or people age 65 or over? (b) African Americans or foreign born noncitizens? (c) Asians or Hispanics?

Answer 1

The government of United States defines poverty as being equal to or less than three times an average family in United States with minimum food expenditures as it is calculated by the USDA. The percentage of families in United States with incomes below the poverty line is known as the poverty rate. The Government statisticians categorises who is officially in poverty by making a comparison of incomes of family to a threshold based on size of the family. The threshold is intended to show the minimum income required by the family in order to satisfy basic requirements for food, shelter, clothing, and transportation.

The rate of paverty may decline despite the number in poverty rising when the growth of population is higher compared to the number of people in poverty

a) Children have a higher poverty rate in comparison to individuals over 65 or over

b) African-Americans poverty rate is higher compared to the foreign-born noncitizens

c) Hispanics poverty rate is higher compared to the Asians