How Did The Subcommittee On Low-Income Families Determine The Official Poverty Line?A. By Interviewing Thousands Of Families To Determine Their Quality Of Life.B. By Declaring Any Individual Who Had An Income Of Less Than $2,000 As Poor.C. By

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The official poverty line, also known as the poverty threshold, is a measure used by governments and organizations to determine the minimum income required for a family to meet its basic needs. In the United States, the official poverty line is determined by the Office of Management and Budget (OMB) using a formula developed by the Census Bureau. But have you ever wondered how this formula was created? In this article, we will explore the history of the official poverty line and how the Subcommittee on Low-Income Families determined it.

The Early Years: The Development of the Poverty Line

The concept of a poverty line dates back to the 1940s, when the U.S. government began to take a more active role in addressing poverty. In 1947, the U.S. Department of Agriculture (USDA) developed a poverty line based on the cost of a minimum diet. This line was set at $1,000 per year for a family of four. However, this line was not widely used, and it was not until the 1960s that the concept of a poverty line gained more traction.

The Creation of the Official Poverty Line

In 1963, the U.S. government established the Office of Economic Opportunity (OEO), which was responsible for implementing the War on Poverty. As part of this effort, the OEO created a subcommittee on low-income families to develop a more comprehensive measure of poverty. The subcommittee was tasked with determining a poverty line that would be used to measure the effectiveness of poverty-reduction programs.

The Mollie Orshansky Formula

The subcommittee was led by Mollie Orshansky, a statistician at the Social Security Administration. Orshansky developed a formula to calculate the poverty line based on the cost of a minimum diet. The formula, known as the Mollie Orshansky formula, used the following steps:

  1. Determine the cost of a minimum diet: Orshansky used data from the USDA to determine the cost of a minimum diet for a family of four.
  2. Calculate the poverty line: Orshansky multiplied the cost of the minimum diet by 3 to determine the poverty line.

The First Poverty Line

Using the Mollie Orshansky formula, the subcommittee determined the first official poverty line to be $3,000 per year for a family of four. This line was set in 1963 and was used to measure poverty for the first time.

The Poverty Line Today

Today, the official poverty line is calculated using a more complex formula that takes into account the cost of living in different parts of the country. The formula is as follows:

  1. Determine the cost of a minimum diet: The Census Bureau uses data from the USDA to determine the cost of a minimum diet for a family of four.
  2. Calculate the poverty line: The Census Bureau multiplies the cost of the minimum diet by 3 to determine the poverty line.

The Poverty Line Today: A Critique

While the official poverty line has been an important tool for measuring poverty, it has also been criticized for its limitations. Some of the criticisms include:

  • The poverty line does not account for non-monetary benefits: The poverty line only takes into account the cost of a minimum diet and does not account for non-monetary benefits such as healthcare and education.
  • The poverty line is not adjusted for inflation: The poverty line is not adjusted for inflation, which means that it does not take into account changes in the cost of living over time.
  • The poverty line is not a comprehensive measure of poverty: The poverty line only measures income poverty and does not account for other forms of poverty such as poverty of opportunity.

Conclusion

In conclusion, the official poverty line was determined by the Subcommittee on Low-Income Families using the Mollie Orshansky formula. The formula was developed to calculate the cost of a minimum diet and multiply it by 3 to determine the poverty line. While the official poverty line has been an important tool for measuring poverty, it has also been criticized for its limitations. As we move forward, it is essential to continue to refine and improve the poverty line to ensure that it accurately reflects the needs of low-income families.

References

  • Orshansky, M. (1963). Counting the Poor: Another Look at the Poverty Profile. Social Security Administration.
  • U.S. Census Bureau. (2020). Poverty Thresholds for 2020.
  • U.S. Department of Agriculture. (2020). Cost of a Minimum Diet.

Additional Resources

  • The U.S. Census Bureau provides data on poverty rates and the official poverty line.
  • The U.S. Department of Agriculture provides data on the cost of a minimum diet.
  • The Social Security Administration provides information on the history of the poverty line.
    Frequently Asked Questions: Understanding the Official Poverty Line ====================================================================

The official poverty line is a complex and multifaceted concept that can be difficult to understand. In this article, we will answer some of the most frequently asked questions about the official poverty line.

Q: What is the official poverty line?

A: The official poverty line, also known as the poverty threshold, is a measure used by governments and organizations to determine the minimum income required for a family to meet its basic needs.

Q: How is the official poverty line calculated?

A: The official poverty line is calculated using a formula developed by the Census Bureau. The formula takes into account the cost of a minimum diet and multiplies it by 3 to determine the poverty line.

Q: What is the current official poverty line?

A: The current official poverty line is $26,500 for a family of four. However, this number can vary depending on the state and local area.

Q: How is the official poverty line used?

A: The official poverty line is used to measure poverty rates and to determine eligibility for government programs such as food stamps and Medicaid.

Q: What are some of the limitations of the official poverty line?

A: Some of the limitations of the official poverty line include:

  • It does not account for non-monetary benefits: The official poverty line only takes into account the cost of a minimum diet and does not account for non-monetary benefits such as healthcare and education.
  • It is not adjusted for inflation: The official poverty line is not adjusted for inflation, which means that it does not take into account changes in the cost of living over time.
  • It is not a comprehensive measure of poverty: The official poverty line only measures income poverty and does not account for other forms of poverty such as poverty of opportunity.

Q: How has the official poverty line changed over time?

A: The official poverty line has changed over time to reflect changes in the cost of living and the needs of low-income families. For example, in 1963, the official poverty line was $3,000 per year for a family of four. Today, the official poverty line is $26,500 per year for a family of four.

Q: What are some of the criticisms of the official poverty line?

A: Some of the criticisms of the official poverty line include:

  • It is too narrow: The official poverty line only measures income poverty and does not account for other forms of poverty such as poverty of opportunity.
  • It is too simplistic: The official poverty line is based on a simple formula that does not take into account the complexities of poverty.
  • It is not effective: The official poverty line has been criticized for not being effective in reducing poverty.

Q: What are some of the alternatives to the official poverty line?

A: Some of the alternatives to the official poverty line include:

  • The Supplemental Poverty Measure (SPM): The SPM is a more comprehensive measure of poverty that takes into account non-monetary benefits such as healthcare and education.
  • The Poverty Gap Index: The Poverty Gap Index is a measure of poverty that takes into account the gap between the official poverty line and the actual income of low-income families.
  • The Multidimensional Poverty Index (MPI): The MPI is a measure of poverty that takes into account multiple dimensions of poverty such as income, education, and healthcare.

Conclusion

In conclusion, the official poverty line is a complex and multifaceted concept that can be difficult to understand. By answering some of the most frequently asked questions about the official poverty line, we hope to have provided a better understanding of this important concept.

References

  • U.S. Census Bureau. (2020). Poverty Thresholds for 2020.
  • U.S. Department of Agriculture. (2020). Cost of a Minimum Diet.
  • Social Security Administration. (2020). Counting the Poor: Another Look at the Poverty Profile.

Additional Resources

  • The U.S. Census Bureau provides data on poverty rates and the official poverty line.
  • The U.S. Department of Agriculture provides data on the cost of a minimum diet.
  • The Social Security Administration provides information on the history of the poverty line.