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CALCULATING THE LINE OF POVERTY. 1) Federal Poverty thresholds are based on the assumption that a family of 4 spends 1/3rd of its income on

CALCULATING THE LINE OF POVERTY.

1) Federal Poverty thresholds are based on the assumption that a family of 4 spends 1/3rd of its income on food. (2adults/2kids)...

(use the 2020 document, it should download a chart)

https://www.census.gov/data/tables/time-series/demo/income-poverty/historical-poverty-thresholds.html 

2.Based on the government's estimate, what is the annual cost of food for a family of 4? (federal estimate 3)

3.Assume the government revises the poverty calculations on the assumption that a family of 4 spends 15% (or 1/7th) of its income on food. How much does a family need to purchase food and everything else it needs? The adjusted federal estimate is ...... (cost of food from question #2 x 7)

4.What if the government used other factors - childcare or housing costs - to calculate the poverty line?

  • In California, fair market rent for a 2 bedroom apartment costs $1446 per month
 https://www.rentdata.org/states/california/2020 

  • a California family pays an average of $760 per month in preschool childcare costs (that's $1520 for 2 kids!)
 https://www.americanprogress.org/issues/early-childhood/reports/2018/11/15/460970/understanding-true-cost-child-care-infants-toddlers/ 

5.If the federal estimate was based on housing costs, not food, the poverty line would be. (rent per month x 12 months per year x 3)

6.If the federal estimate was based on childcare, not food, the poverty line would be....(childcare per month [2kids] x 12 months per year x 3)

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  1. What is wrong with how we calculate poverty in the U.S.? Identify and explain at least 2 flaws.
  2. The government knows the poverty line is no longer accurate. Why might the government be hesitant to correct its formula for calculating poverty?
  3. How does the government attempt to alleviate poverty? Pick 2 anti-poverty programs and explain 1) when were they created, 2) who qualifies, 3) how much money is in the program

 https://poverty.ucdavis.edu/article/war-poverty-and-todays-safety-net-0 

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