Poverty spreads in the U.S.A.
Census Bureau says 1.3 million more slipped into
poverty last year; health care coverage also drops.
August 26, 2004
WASHINGTON (CNN) - The number of Americans living in poverty jumped to 35.9 million
last year, up by 1.3 million, while the number of those without health care insurance rose
to 45 million from 43.6 million in 2002, the U.S. government said in a report Thursday.
The percentage of the U.S. population living in poverty rose to 12.5 percent from 12.1
percent -- as the poverty rate among children jumped to its highest level in 10 years, the
Census Bureau said in an annual report. The rate for adults 18-to-64 and 65-and-older
remained steady.
The bureau also said the share of aggregate income for the lowest 20 percent of
Americans fell to 3.4 percent from 3.5 percent.
Democratic politicians were quick to seize on the new data, and none was quicker than
their presidential nominee, Sen. John Kerry, D-Mass. He said the statistics
"underscore the fundamental choice at stake in this election."
"Four more years of an administration that puts the narrow interests of the few
ahead of the interests of most Americans, or new leadership that will serve as a champion
for the middle-class and those struggling to join it," he said in a written
statement.
Sen. Judd Gregg, R-N.H., released a statement noting that the Census data covered the
year 2003 and "does not include the full effect of the president's tax relief."
Gregg, chairman of the Senate Health, Education, Labor and Pensions Committee, took aim
at Kerry, accusing the Massachusetts senator of planning to raise taxes and increase
government spending and regulation.
Kerry has argued Bush's economic stewardship, including three rounds of tax cuts since
2001, has done more to help wealthy Americans than the poor or middle class.
But analysts have said the poverty rate typically tracks the broad economy, rising
during a recession and falling in boom times. America has struggled to recover from the
2001 slump, and job creation has lagged behind overall growth.
Children and most racial minorities again fared worse than the overall population in
2003, according to the Census report. The rate of child poverty rose to 17.6 percent from
16.7 percent in 2002 -- boosting the number of poor children to 12.9 million.
The poverty rate of of African Americans remained nearly twice the national rate, with
24.4 percent of blacks living below the poverty line in 2003, slightly higher from 24.1
percent a year earlier.
Hispanic incomes decline
While the real median income for the entire country remained steady, households with
Hispanic householders, who can be of any race, reported a decline in median income of 2.6
percent.
Non-Hispanic white household median income remained about $48,000, black households
held at $30,000, while Asian households were steady at $55,500.
The West, at $46,820, Northeast, at $46,742, and Midwest, at $44,732, saw no change in
median household income, but the South fell 1.5 percent to $39,823.
Women saw a decline in their earnings for the first time since 1995, falling 0.6
percent to $30,724, putting the female-to-male earnings ratio -- for full-time, year-round
workers -- at 76 cents on the dollar, a penny lower than 2002.
Health care coverage also dropped last year, the Census Bureau said in its report, seen
by some as an important scorecard on the nation's economy and Bush's first term in office.
The number of Americans living without insurance jumped 1.4 million last year, the
government said in a report on Thursday. (For more on the report, see below).
Medicaid, the federal health insurance program for the poor, saw an increase in people
covered to 35.6 million from 33.2 million while those covered by Medicare, the federal
health program for the elderly, rose to 39.5 million from 38.4 million people.
The Office of Management and Budget at the Census Bureau defined the poverty threshold
in 2003 as $18,810 for a family of four; $14,680 for a family of three; $12,015 for a
family of two; and $9,393 for an individual. |