7.3c The Lower Class

The U.S. federal government developed a measure of poverty in the 1960s for statistical purposes. The government calculates the official poverty threshold as “the cost of a minimum food diet multiplied by three to account for other family expenses” (U.S. Census Bureau, 2022a) (see Table 7.4). Federal government agencies use the poverty threshold to assess eligibility for federal programs, ranging from Head Start (early childhood education) to Medicare health insurance (for individuals aged 65 or older and those with disabilities) to Section 8 low-income housing aid (U.S. Department of Health and Human Services, 2023). It is the benchmark for absolute poverty in the United States, as it is considered the minimum amount of money a family needs to meet its basic needs for food and shelter. The official percentage of people in poverty, as measured by this standard, in the United States is 11.1% (U.S. Census Bureau, v2024).

In 2011, the U.S. Census Bureau (2022b) began calculating the supplemental poverty measure. The supplemental poverty measure considers the costs of food, clothing, shelter, utilities, and telecommunications; corrects for geographic differences in housing expenses; and considers non-cash benefits like tax credits and the National School Lunch Program, as well as other necessary expenses like health care and child care, to provide a fuller picture of poverty in the United States. The poverty rate in 2024, using the supplemental poverty measure, was 12.9% (Burns & DiTommaso, 2024) (see Figure 7.10). The poverty rate using this supplemental poverty measure is higher than the official poverty measure because it takes into account a broader range of expenses and sources of support.

Regardless of official government measures of poverty, many in the United States experience relative poverty, meaning they earn income higher than the poverty threshold yet cannot support the standard of living in their community. For example, members of the lower class may be able to meet their basic needs for housing, food, and healthcare, but not necessarily in the same way as most people in their area. Suppose most people in an area have access to a vehicle for commuting to work. In that case, someone who must walk and take a series of buses because they cannot afford a vehicle is experiencing relative poverty. They can meet a basic need (transportation), but not in the standard way in their community.

Photo 7.9

Needing to Take the Bus When Most Others Can Afford Drive Is An Example of Relative Poverty

Scholars of poverty use a poverty threshold of 50% of the median income because the 1960s U.S. measure for poverty was about half the median income at the time (Smeeding, 2016). Measuring the poverty line at 50% of the median income in 2020 yields a poverty rate of 17.5% in the United States, which has remained stable since 1980 (Brady, 2023). Therefore, the official and supplemental poverty measures do not measure the full scope of economic hardship in the United States.

Poverty rates vary with demographic characteristics, including age. Children are more likely to live in poverty than people of other ages. In 2022, the poverty rate for people under 18 was 16.3% and is 10.9% for people 65 and older (Benson, 2023). Childhood poverty also varies geographically, ranging from a high of 26.4% in Mississippi to a low of 6.9% in New Hampshire (Benson, 2023). Poverty rates among those aged 65 and older are highest in the District of Columbia at 15.9% and lowest in Utah at 7.5% (Benson, 2023).