Poverty In The US: Causes, Facts And The Most Afflicted States

The current state of poverty, hunger and social and economic distress has started with the downfall of the economy that came to be in 2008. The effects of the event were felt world-wide, but most probably, nobody was as affected like the US was. That financial crisis destroyed many private businesses (big or small), left many jobless, homeless and even laid to waste one of our most emblematic cities: Detroit.  This economic freefall has somewhat diminished by late 2013, but the aftershock of the financial earthquake is still being felt amongst the masses even today. But there is more to this problem than actual meets the eye. We know for sure what set everything in motion (the economic collapse of 2008), but we must understand what’s keeping us (still) down; the reasons why getting back on the saddle is harder than anticipated. It’s not just based on the faults of our economy, but also on our political system and our place in the world’s economy, that’s not doing too well either.

The economy in the US

The way things are going in the US economic scene today are in no way beneficial to the American people. The way the system has functioned in these last 6 or 7 years has significantly increased the amount of poverty amongst the masses. This is how the free capitalist enterprise system actually operates: employers create a competitive market in which the most adequate and prepared people compete for the best jobs available. The downside is, however, that this also leaves out a great deal of people that remain jobless; these are the ones who qualify least or do not interest employers at all. In a utopia, the market would generate enough jobs for everybody, so that even the least qualified would get a spot (more or less desirable). But in an economy that’s already facing problems, the rate of unemployment grows even larger, because the system is not able to provide enough jobs for everyone. According to a CNBC report, the real unemployment rate is about 10.5%, still far from what it should be.

Politics in the US

The political system in the US is focused on external and internal affairs alike. But the actual situation of the middle-to-lower class in the US receives very little attention or funding from our politicians. It comes as no surprise to anyone that most of ourfunding and attention is directly channeled into our military and security systems.

The US federal government is distributing large budgets to the military and to annexed political and financial connections for safety purposes (aka. the military-industrial complex). These investments are necessary in order to secure our dominance on the world’s stage (and our wellbeing and safety while doing so). Another factor worth mentioning is the ability of rich people and powerful corporations to obtain subsidies and tax breaks. Not only that, but they are also get access to large funds that get spent on projects like political campaigns, congresses and many more. For example, the shift of the Democratic Party, which changed its sights from the working class (it’s now targeting middle class), will require a great deal of effort and a lot of money spent on political propaganda and reorganization.

Poverty worldwide

The US has known poverty in these last few years, but the level of poverty here is nothing compared to the level of poverty in many other places around the globe. It’s estimated that around 1 billion people worldwide are forced to live with an average income of $1.35 a day. We’re situated way above this standard of living, but it’s nothing more than a domino effect, and if we don’t want to find ourselves in a similar spot, we’d best pick up our pace. The best solution to a worldwide economic crisis is trading (importation and exportation). It’s a commonly known fact that most rich and powerful countries have enough labor force for all the industrial quarters available. Not only that, but these countries are also technologically superior, holding enough machinery and technology to improve production. In poor countries, things are different: they have very little capital but a lot of labor force. Because the labor force is cheaper in poor countries (due to high competition), production costs are lower than those in poor countries. That’s how China has raised its economy lately: the overall costs for imported Chinese goods are lower than the production costs in richer countries. This is how economics can easily be explained and the tendency of poor countries to grow financially, while stronger ones tend to crumble. And of course, the ones that get to deal with all the misery are the lower and middle classes.

The most poverty-stricken states in the US

In late 2014, The Center for American Progress Action Fund has released a report (State of the States Report) that’s reporting on all the US states in terms of poverty, inequality or opportunity. These studies have concluded that 45.3 million Americans (14.5% of the total population) are situated below the poverty line, with an income that’s less than $23,834 / year for a family of 4. The South seems to have the highest concentration of poor people than any other place in the US. Let’s have a look at the 3 poorest states at the moment:

3 – Louisiana (19.8% poverty rate)

Louisiana seems to be the most uneven and unusual state. Its unemployment rate seemed to be no bigger than 6.2%, but despite this, there was a strange unevenness regarding income: the richer 20% made staggering incomes (18 time higher) than what the poorest 20% used to make. Not only that, but the gender income gap was significant as well. Throughout 2014 women have earned only about 66% of what men used to make.

2 – New Mexico (22% poverty rate)

New Mexico has been gravely affected by the recession in 2008, as many people working in the public sector lost their jobs (3.900 alone only in 2013). Here about 31% of the children live in conditions of poverty, many of whom are homeless. It’s the holder of a shaming record, as it’s the US capital of teen birth: about 47 out of 1000 women (ages 15 – 19). Despite this controversial figure, it ranks fairly low when it comes to abandoned children, as only 4 in 1000 kids are placed in foster care.

1 – Mississippi (24.1% poverty rate)

This is undoubtedly the poorest state in the country, where about 696.000 people live below poverty conditions. It’s also takes the take when it comes to child poverty (33.8% children) and food insecurity. It has no defined minimum wage (just like Alabama, South Carolina and Tennessee) and the unemployed are sustained mainly by government-funded welfare programs.

No matter the political systems going around, no matter the fluctuation of the economy, no matter how many successful investments a government makes, we will never eradicate poverty. For some to ascend on the social and economical scale, other needs to descend. We’ll never be all rich; this is only a naïve utopia. But what we can do is address the problem as seriously as we can and intervene as much as possible. Take a stance against poverty and counter it with education and donations.

By Alec Deacon