Abstract: For decades, the U.S. Census Bureau has reported that over 30 million Americans were living in “poverty,” but the bureau’s definition of poverty differs widely from that held by most Americans. In fact, other government surveys show that most of the persons whom the government defines as “in poverty” are not poor in any ordinary sense of the term. The overwhelming majority of the poor have air conditioning, cable TV, and a host of other modern amenities. They are well housed, have an adequate and reasonably steady supply of food, and have met their other basic needs, including medical care. Some poor Americans do experience significant hardships, including temporary food shortages or inadequate housing, but these individuals are a minority within the overall poverty population. Poverty remains an issue of serious social concern, but accurate information about that problem is essential in crafting wise public policy. Exaggeration and misinformation about poverty obscure the nature, extent, and causes of real material deprivation, thereby hampering the development of well-targeted, effective programs to reduce the problem.
Each year for the past two decades, the U.S. Census Bureau has reported that over 30 million Americans were living in “poverty.” In recent years, the Census has reported that one in seven Americans are poor. But what does it mean to be “poor” in America? How poor are America’s poor?
For most Americans, the word “poverty” suggests destitution: an inability to provide a family with nutritious food, clothing, and reasonable shelter. For example, the Poverty Pulse poll taken by the Catholic Campaign for Human Development asked the general public: “How would you describe being poor in the U.S.?” The overwhelming majority of responses focused on homelessness, hunger or not being able to eat properly, and not being able to meet basic needs.[1] That perception is bolstered by news stories about poverty that routinely feature homelessness and hunger.
Yet if poverty means lacking nutritious food, adequate warm housing, and clothing for a family, relatively few of the more than 30 million people identified as being “in poverty” by the Census Bureau could be characterized as poor.[2] While material hardship definitely exists in the United States, it is restricted in scope and severity. The average poor person, as defined by the government, has a living standard far higher than the public imagines.
As scholar James Q. Wilson has stated, “The poorest Americans today live a better life than all but the richest persons a hundred years ago.”[3] In 2005, the typical household defined as poor by the government had a car and air conditioning. For entertainment, the household had two color televisions, cable or satellite TV, a DVD player, and a VCR. If there were children, especially boys, in the home, the family had a game system, such as an Xbox or a PlayStation.[4] In the kitchen, the household had a refrigerator, an oven and stove, and a microwave. Other household conveniences included a clothes washer, clothes dryer, ceiling fans, a cordless phone, and a coffee maker.
The home of the typical poor family was not overcrowded and was in good repair. In fact, the typical poor American had more living space than the average European. The typical poor American family was also able to obtain medical care when needed. By its own report, the typical family was not hungry and had sufficient funds during the past year to meet all essential needs.
Poor families certainly struggle to make ends meet, but in most cases, they are struggling to pay for air conditioning and the cable TV bill as well as to put food on the table. Their living standards are far different from the images of dire deprivation promoted by activists and the mainstream media.
Regrettably, annual Census reports not only exaggerate current poverty, but also suggest that the number of poor persons[5] and their living conditions have remained virtually unchanged for four decades or more. In reality, the living conditions of poor Americans have shown significant improvement over time.
Consumer items that were luxuries or significant purchases for the middle class a few decades ago have become commonplace in poor households. In part, this is caused by a normal downward trend in price following the introduction of a new product. Initially, new products tend to be expensive and available only to the affluent. Over time, prices fall sharply, and the product saturates the entire population, including poor households.
As a rule of thumb, poor households tend to obtain modern conveniences about a dozen years after the middle class. Today, most poor families have conveniences that were unaffordable to the middle class not too long ago.
Poverty: A Range of Living Conditions
However, there is a range of living conditions within the poverty population. The average poor family does not represent every poor family. Although most poor families are well housed, a small minority are homeless.
Fortunately, the number of homeless Americans has not increased during the current recession.[6]Although most poor families are well fed and have a fairly stable food supply, a sizeable minority experiences temporary restraints in food supply at various times during the year. The number of families experiencing such temporary food shortages has increased somewhat during the current economic downturn.
Of course, to the families experiencing these problems, their comparative infrequency is irrelevant. To a family that has lost its home and is living in a homeless shelter, the fact that only 0.5 percent of families shared this experience in 2009 is no comfort. The distress and fear for the future that the family experiences are real and devastating. Public policy must deal with that distress. However, accurate information about the extent and severity of social problems is imperative for the development of effective public policy.
In discussions about poverty, however, misunderstanding and exaggeration are commonplace. Over the long term, exaggeration has the potential to promote a substantial misallocation of limited resources for a government that is facing massive future deficits. In addition, exaggeration and misinformation obscure the nature, extent, and causes of real material deprivation, thereby hampering the development of well-targeted, effective programs to reduce the problem. Poverty is an issue of serious social concern, and accurate information about that problem is always essential in crafting public policy.
Living Conditions of the Poor
Each year, the U.S. Census Bureau releases its annual report on income and poverty.[7] This report, though widely publicized by the press, provides only a bare count of the number of Americans who are allegedly poor. It provides no data on or description of their actual living conditions.
This does not mean that such information is not available. The federal government conducts several other surveys that provide detailed information on the living conditions of the poor. These surveys provide a very different sense of American poverty.[8] They reveal that the actual standard of living among America’s poor is far higher than the public imagines and that, in fact, most of the persons whom the government defines as “in poverty” are not poor in any ordinary sense of the term. Regrettably, these detailed surveys are almost never reported in the mainstream press.
One of the most interesting surveys that measures actual living conditions is the Residential Energy Consumption Survey (RECS),[9] which the Department of Energy has conducted regularly since 1980.[10]The RECS survey measures energy consumption and ownership of various conveniences by U.S. households. It also provides information on households at different income levels, including poor households.
The first half of this paper uses RECS data to analyze and describe one aspect of the living standards of the poor: ownership and availability of household amenities.[11] The second half provides a broader description of the living standards of America’s poor.
Availability of Amenities in Poor Households
This section uses RECS data from 2005, the most recent year for which data are available, to analyze the amenities typically found in poor households.[12] The 2005 RECS data represent the living conditions of the poor before the current recession. Conditions are likely quite similar today.
Because the current recession has increased the number of poor persons in the U.S. since 2005, it might seem likely that poor households would have fewer amenities and conveniences today than in 2005. However, the increase in poverty during the recession is, to a considerable degree, the result of working-class families losing employment. One would not expect these families to dispose of their normal household conveniences in those circumstances. Thus, paradoxically, the increase in the number of working- and middle-class families who have become temporarily poor is likely to increase slightly the share of poor households that own various items. When the present recession ends, the living conditions of the poor are likely to continue to improve as they have in the past.
Chart 1 shows the percentage of all U.S. households that owned or had available various household amenities and conveniences in 2005. For example, it shows that 84 percent of all U.S. households had air conditioning, 79 percent had cable or satellite television, and 68 percent had a personal computer.[13]
Chart 2 shows the same information for 2005 for poor U.S. households (those with cash incomes below the official poverty thresholds). While poor households were slightly less likely to have conveniences than the general population, most poor households had a wide range of amenities. As Chart 2 shows, 78 percent of poor households had air conditioning, 64 percent had cable or satellite TV, and 38 percent had a personal computer.[14]
