State With Highest Poverty Rate – Cronkite News has moved to a new home at cronkitenews.azpbs.org. Use this page to search the archives from 2011 to May 2015. You can search the new page for current stories. Arizona Poverty, Income Estimates Worse Than 2012 National Average
WASHINGTON – Arizona had significantly higher poverty rates and lower incomes than the rest of the nation last year, according to data released Thursday by the Census Bureau’s American Community Survey.
State With Highest Poverty Rate
Arizona’s poverty rate was 18.7 percent in 2012, well above the national average of 15.9 percent and the eighth highest among the states, the survey said. The state’s median household income that year was $47,826, compared with a national average of $51,371.
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Both numbers were slightly better than the previous year in Arizona, but significantly worse than the state in 2000, when the poverty rate was 15.6 percent and income, adjusted for inflation, would have been $51,376.
Although the Phoenix metro area fared slightly better than the rest of the state, with a poverty rate of 17.4 percent, it still tied Detroit for fourth among the nation’s 25 most populous areas.
Despite the decidedly bleak statistics, economists said they are not discouraged by the new figures, which show the state about where it needs to be in its long climb out of the recession.
Barry Broome, president of the Greater Phoenix Economic Council, said poverty rates are higher than they should be now, but he expects them to continue to decline.
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Bill Hart, a senior policy analyst at Arizona State University’s Morrison Public Policy Institute, said the dire numbers reflect the income gap that has characterized the nation’s economic recovery.
“You have a stock market when you have millions of people unemployed or underemployed,” Hart said. “So it really does smell like you’re moving toward two different Americas.” One reaps the fruits of the economic system, while the other remains behind.”
Hart, who co-authored an upcoming study on homelessness in Arizona, said the state’s poverty rate and its homelessness rate are closely related, and both stem largely from unemployment. Most participants in Hart’s study cited economic reasons for homelessness—usually job loss. His research identified job creation and job training as two key factors in combating homelessness.
Poverty and income trends in Arizona largely reflect the nation’s trends, improving since 2011 but still worse than in 2000.
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The only states where poverty rates decreased from 2000 to 2012 were Louisiana, North Dakota and West Virginia, and those decreases were small enough to be within the study’s margin of error. Michigan saw the most dramatic increase in the poverty rate, rising from 10.1 percent in 2000 to 17.4 percent in 2012.
Nearly every state in the southern half of the country had 16 percent of its population below the poverty line in 2012, according to the report.
Thursday’s report also showed that the percentage of Arizonans without health insurance rose to 20.4 percent in 2012 from 19.4 percent in 2010. According to the survey, 56.4 percent of the state was covered only by private insurance, while 23.2 percent had public insurance.
For Arizona, the numbers paint a reasonable picture of the economic recovery, said Tom Rex, associate director of the Center for Competitiveness and Prosperity Research at the W.P. at ASU. Carey School of Business. The numbers back up earlier estimates of when the state thought it might fully recover, he said.
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“During the recession, people said it would be 2014 or 2015, and so far that seems pretty accurate,” he said. “I’d say it’s closer to 2015.”
Hart agreed that the new numbers are consistent with what Arizonans already know about the state’s economic health. The state’s economic dependence on construction and real estate is a major reason for the high poverty rate and low income in Arizona, and especially in Phoenix.
Because of this, Hart and Rex said the state’s political leaders should try to diversify the economy now so that when the economy recovers, another crash doesn’t happen.
“We’ll get better,” Rex said. – It’s only a matter of time. But that doesn’t explain the underlying issue of cyclicality. “Cyclicality is not good for people.”
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Poverty affects millions of children in America, and the national child poverty rate in 2021 was 16.9%. Here are the states with the highest poverty rates.
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Americans earn more than 20% of the world’s income, despite making up less than 5% of the world’s population. Yet poverty—not having enough money to meet basic needs—remains a chronic problem in the United States.
Poverty also affects millions of children in America. According to the Census Bureau’s American Community Survey (ACS), the national child poverty rate in 2021 was 16.9%. By contrast, the national poverty rate that year was 12.8%.
Child poverty rates are highest in the South, according to 2021 Census Bureau ACS data. Three-quarters of the Southern states—specifically, 12 of the 16 states—and Washington, D.C., had child poverty rates of at least 18%. Meanwhile, the Midwest and Northeast had only one state (Ohio and New York, respectively) with a child poverty rate of at least 18%, while the West had two (Nevada and New Mexico).
Of all states, Mississippi has the highest child poverty rate at 27.7%, followed by Louisiana at 26.9%. Washington, DC and New Mexico have the third highest child poverty rates at 23.9%.
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On the other hand, Utah has the lowest child poverty rate of any state at 8.1%. It is followed by New Hampshire (9.2%), Vermont (10.4%), North Dakota (10.5%) and Minnesota (10.8%).
According to the latest data, the national child poverty rate decreased from 21.2% in 2012-2016 to 17.0% in 2017-2021. However, in the same period, the child poverty rate is still 4.4 percentage points higher than the national poverty rate, which is 12.6%.
In contrast, the poverty rate for people aged 65 and over was three percentage points below the national rate between 2017 and 2021.
Only 117 (3.7%) US counties had child poverty rates of 40% or higher. Most of them, 81.2%, were in the south.
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The federal government typically uses an official poverty measure to determine poverty status. The measure sets income limits based on family size and composition. If a household’s annual pre-tax income is at or below the threshold, then that household and everyone in it is classified as in poverty.
To address these limitations, the federal government also uses the Supplemental Poverty Measure (SPM). Unlike the official measure of poverty, the SPM counts both cash and non-cash benefits — including federal food programs, housing subsidies and tax credits — and subtracts necessary expenses such as taxes, health care costs and child care.
See more data on the standard of living in the United States. Get the facts straight to your inbox every Monday by signing up for our newsletter. Obama is the sixth poorest state in the United States, according to a new report by the nonprofit Obamacare.
About 18.5 percent of Obama residents live below the federal poverty line, but the percentage varies widely by county. Not surprisingly, Black Belt counties have the highest poverty rates and metro areas the lowest.
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“Poverty is not a state of mind; It’s a difficult series of barriers that hard-working people must overcome every day,” said Christina Scott, executive director of Obama Possible, the statewide nonprofit that released the report.
“While Obama’s extreme poverty rate has decreased slightly, we still have work to do,” he said in a statement. Last year, Obama ranked as the fourth poorest state in the nation.
In Perry County, 40 percent of the population lives below the federal poverty line, the highest of any county in the state. At the other end of the spectrum is Shelby County, which has a poverty rate of 8.5 percent.
Fourteen of Obama’s 67 counties — 1 of which is the Black Belt — have poverty rates above 25 percent.
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That’s despite Obama’s workforce being the largest it has been in five years, as former Gov. Robert Bentley noted in his 2017 State of the Union address. He thus dismissed Obama’s “persistent poverty” as an issue to be resolved.
What is the poverty level? For a family of four, that’s $24,257 a year or less. For two people, that’s $15,391 a year or less.
Hispanic or Latino Alabama has the highest poverty rate at nearly 34 percent.
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