
140k is the poverty line
In a viral essay by Michael Green, the argument is made that the current government poverty line is out of date and not based on reality, and that based on the going rate of modern costs for a family of four, the poverty line is more like $140,000.
This claim has set off a bit of a firestorm. Many people see this number and it gives a voice to their current feelings on their own reality. The majority of Americans are feeling tight in this economy, with personal credit totals reaching all-time highs heading into Christmas that will largely be paid for with plastic. When they see numbers like this, they exclaim no wonder this has become so difficult!”
And it has become seemingly more difficult. But, from another angle, Green’s article has sparked a debate around the language we use around poverty itself. We may throw around “poverty,” “affordability,” or “middle class,” but it may be that those terms themselves have seen shifts in their definitions from previous generations of usage.
When we dig into the numbers, you begin to see some of the flaws in the accounting surrounding modern poverty.
For example, Green estimates using national data that the average person will spend almost $15,000 a year on transportation. But, if you are impoverished, there is no way you will be spending that much a year on travel. Those impoverished will be using public transport when available. And when not available, they will buy an old Toyota and run the wheels off it. I found a RAV4 for $6,000 and a Camry for $3,000 in a quick Google search at a local dealer. Did they have all the creature comforts of a newer car? No. But these cars are known to run for a long time in comparison to their newer peers.
True poverty forces you to make different decisions when it comes to creature comforts.
The same is true for food, healthcare, housing, and childcare. Poverty means suboptimal housing. It means rice and beans for dinner. And it means squashing the “other” category of spending.
The big argument in Green’s article is childcare, as it is the biggest expense for a family of four. Poor people cannot pay Green’s $32,000 a year price tag. Poor people network with relatives, neighbors, take advantage of subsidies, after-school programs, and local libraries to cover the gaps in their schedule. It’s not Montessori, but it’s parents making it happen. It is about survival.
I am beginning to think my generation seems to believe that survival is ordering black coffee at Starbucks rather than a latte with extra caramel.
Give me a break. If $140k is poverty, then most of the world would like to sign up. Poverty means you can’t drive the car you want, have the work-life balance you want, go to the school you want, and live in the neighborhood you want.
Poverty is bleak and needs to be eradicated. But I am not sure we will be able to erase the poverty in our neighbors if someone who is living above their means also feels like they are impoverished.
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