Tuesday, April 5, 2011

The Poverty Line

I am working on a project that is considering the ramifications of the nation's poverty line.  For a family of four, the poverty line is set at an annual family income of $22,050.  This, it is believed, is the minimum amount of money needed to survive for a family of four.

What do you make of this figure?  I am trying to tell a story about this, looking at why this is so difficult and problematic.  But I am wondering if any of you might have your own thoughts or ideas to share that might help spark my own story or details?

For some perspective:
This boils down to:  $1,837.50 per month for the family; approximately $424.04 per week; and $60.41 per day for the family.  For an individual this means, one has to live on approximately $15.10 a day.

In Minnesota, the average family of four spends $771 a month on food.  This averages out to $6.34 per day, per person for food.

A two-bedroom apartment runs for approximately $900 a month, costing about $11,100 annually to rent. 

Base utitilies for water, power, and basic phone service runs approximately $3360 per year.

These figures alone add up to more than $22,050.  So, the family would likely need to cut back on food consumption to save money.

An allowance would need to be made for gas and transportation expenses to get to and from work and or school.

And health care costs are yet another figure to consider. 

Based on these quick estimates and areas of a basic budget, what do you think?  What does the poverty line mean to you?   I would love to hear your thoughts.

1 comment:

  1. I've got alot to say about this, thanks to the service I'm doing this year. You're hitting the nail on the head though. The poverty line is pretty low, though I also wonder what would happen if it was raised. I wonder if it would have a similar impact to raising minimum wage, which in many ways seems to drive inflation.

    Aside from the social impacts of living around the poverty line, there is a heavy reliance on public transportation. Cars, with their high monthly costs and lump sums needed to purchase, are virtually unattainable. However, 15 minute car rides can take around an hour on a bus, which either cuts into work time ($$$), or family time. I've also noticed many students that miss class time because they don't time public bus rides correctly.

    In one sentence, the poverty line is about access to me. It says something about things a family can't purchase, and also defines the kind of public services it is entitled to.

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