Poverty rate is falling?

We bid farewell to Obama with the happy news that 3.5 million Americans from every demographic group benefited from a stronger economy, and an expanding job market in 2015. Poverty levels is a State phenomenon and Mississippi leads with 22% living below the poverty line, followed by some more red states with Trump supporters. Tiny NH has the lowest rate of 8.2% and the worse states are still in their teens, despite the growth of the last seven years in employment. Income inequality is not only an economic problem, but it is also a social and political problem. America has to grow its way out of its problems and for that it needs good policies and budgets. The middle class should grow to lift more people out of poverty, in the new welfare state (post the first Clinton as a lot of the safety net is gone).

Blacks and Hispanics who account for more than 45 percent of those below the poverty line of $24,300 for a family of four in most states — experienced the largest improvement in 2015. Unfortunately over 24% Blacks still live below the official poverty line and over 21% for Hispanics and while it is a low of 9.1% for whites, they have benefited greatly last year from the reduction in poverty; due to economic development, and low gas prices. About 43 million Americans, more than 14 million of them children, are still officially classified as poor and have no safety net in the richest nation on earth.

2.9 million more jobs were created from 2014 to 2015, helping millions of unemployed people cross over into the ranks of regular wage earners. Millions worry about their family’s financial security on a daily basis providing support to such candidates as Donald Trump. If Republican policies are so much better than the democrats then Mr. Trump will lead the Red states finally out of their poverty, in his speeches. I fear in reality, he will perpetuate the disaster of future inequality, with his policies and actions like lower taxes for the wealthy.

The benefits of the growing economy finally translates to higher income and jobs for the High School dropouts, High Schoolers and part college lowest rungs amongst wage earners are finally seeing change. The new jobs being created are helping the poorest and millions more have Healthcare under the new Accountable Care act, for the first time in their life. Majority of these benefits have gone to lift old people and young under 18 across the country out of dire poverty. We have to continue to make progress in helping these working poor, to live an honorable life. We are on the right track and everyone deserves their dignity..

This entry was posted in Economics, Happiness, Hope by Rajiv Kapoor. Bookmark the permalink.

About Rajiv Kapoor

Rajiv Kapoor was born in New Delhi. He was educated by the Jesuits at St Xavier’s, and graduated with Honors, from The University of Delhi. Rajiv Kapoor did his MBA in International Business from Penn State and is now settled in the US. He has traveled across most states of India, when he was working on modernization of Rice Mills, and understands their diverse culture and history. This book is a historical fiction, dedicated to his city of birth. His extensive research dives deep into a critical moment, in India’s long history, for his latest Historical Thriller “The Peacock Throne Wars”..

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