The Poverty Line
Gaps in Current Poverty Measures
Current Issue: The Official Poverty Measure (OPM) does not consider non-cash benefits like food stamps (SNAP), housing assistance, or healthcare subsidies.
New Measure Needed: A comprehensive measure that includes the value of non-cash benefits.
Who Falls Through the Cracks: Low-income working families receiving benefits like food stamps or subsidized housing.
Current Issue: The OPM doesn't adjust for regional cost-of-living differences.
New Measure Needed: Adjust thresholds for regional cost variations, especially housing costs.
Who Falls Through the Cracks: Urban families in high-cost areas and rural families with lower costs.
Current Issue: The OPM does not subtract work-related expenses like childcare, commuting, and payroll taxes.
New Measure Needed: Deduct necessary expenses to reflect actual disposable income.
Who Falls Through the Cracks: Working parents who spend large portions of their income on childcare and commuting.
Current Issue: Health-related expenses are not deducted from income when calculating poverty.
New Measure Needed: Subtract out-of-pocket medical costs from income.
Who Falls Through the Cracks: Families with disabled members or chronic illnesses.
Current Issue: The OPM is based solely on income and does not consider savings or assets.
New Measure Needed: An asset-based poverty measure that considers a household's ability to cover expenses for three months if their income is lost.
Who Falls Through the Cracks: Middle-income families living paycheck to paycheck.
Current Issue: Poverty is defined too narrowly in terms of income, ignoring education, health, and living conditions.
New Measure Needed: Incorporate a multidimensional approach that accounts for factors such as education, health, housing quality, and access to clean water.
Who Falls Through the Cracks: Families in underdeveloped regions with limited access to healthcare and education.
Current Issue: The current poverty line does not reflect the true cost of self-sufficiency.
New Measure Needed: A self-sufficiency standard that assesses how much income a family needs to cover basic needs without relying on public assistance.
Who Falls Through the Cracks: Families barely above the poverty line but still reliant on public assistance.