By Stephen Kopko

Impunity Watch Reporter, North America

WASHINGTON D.C., United States – Beginning in the fall of 2011, the United States federal government will use an experimental analysis in calculating the poverty level within the country.  The experimental analysis will be based on 1995 National Academy of Sciences recommendations on how to determine the poverty income level.  The recommendations will not replace the current policy of formulating income level.

The analysis by which the federal government calculates the poverty level was established in the 1960s.  It examines two factors to determine who is poor based on income in the U.S.  The formula took into consideration a family’s or person’s income level and the cost of food.  The formula was also based on a two parent, two children household. Currently, the income level of poverty in the United States is $22,050 for a family of four.  This formula also is the baseline for qualifying for entitlement programs, such as Medicaid and welfare.

The new formula, the Supplemental Poverty Measure, is designed to gauge the needs of the poor in today’s society by taking into consideration other services that are considered basic needs.  Under the new formula, health care costs, childcare expenses, utilities, geographic location, and little more money to provide greater security will be calculated into the poverty formulation.  It will also consider the receipt of entitlement, such as food stamps, in the formulation.

Commerce Department officials stated that the new analysis of the poverty income level will not replace the current formula.  They stated that the new way to examine poverty was an alternative to the current system. Rebecca Blank, Undersecretary for Economic Affairs at the Commerce Department, stated that the alternative formula gives the Department a new lens to examine the basic needs of Americans.

Many advocates for the poor are excited about the alternative formula.  They believe that the current way of calculating the poverty level is not realistic.  Vanessa Wight, a demographer at the National Center for Children in Poverty, stated “we’re going to see a more accurate measure, based on what it really takes to get by in America.”  She also stated that “it really costs about twice the poverty threshold for families to meet ends meet.”

For more information, please see:

Christian Science Monitor – Who’s poor in America? US tweaks how it defines poverty – 3 March 2010

Washington Post – New formula to give fresh look at U.S. poverty – 3 March 2010

NY Times – U.S. Plans New Measure for Poverty – 2 March 2010