Today we learned from the Census Bureau that, as was widely expected, the nation’s poverty rate went up last year, from 13.2% in 2008 to 14.3% in 2009. These are more than just statistics: they’re a stark reminder of the hardship faced by so many American families.
But while we know that recessions always lead to higher poverty rates – and the recession that greeted our administration was no exception – the increase in 2009 was notable in that poverty rose less than expected. What’s more, middle-class incomes held steady, and full-time workers’ median earnings actually went up 2%. The evidence reviewed below points to the Recovery Act as the reason for these outcomes.
Before we examine the new data, let’s back up for a little historical context. While the recession that began in late 2007 was particularly tough on middle- and low-income families, many of these families struggled even as the economy expanded in the 2000s. Yes, the economy grew in those years, but growth was so skewed toward the well-to-do that poverty actually rose, from 11.3% in 2000 to 12.5% in 2007. The incomes of middle class families flat-lined during the last expansion.
Fonte: White House