Poverty in America over time

Poverty in America

Over the last several years, the issues of poverty and the economy have been increasingly brought to the forefront. Part of the reason for this, is because these levels have been going through tremendous amounts of volatility. As, both: recessions and expansions will play a major role in affecting the number of people who fall into this category. Evidence of this can be seen by looking no further than, the poverty rate between: 2007 and 2008. As, it increased to: 13.9% (in 2008) which is up from 12.5% (in 2007). What this is showing is that these amounts are dependent upon: the strength of the economy and they are often tied to unemployment levels. (Gabe 1-2) This is significant, because it is highlighting how this number will vary based upon economic activity. To fully understand what is taking place requires: examining how the economy is affecting these figures and the way it is impacting the U.S. As a whole (to include: individuals within society). Together, these factors will provide the greatest insights, as to how poverty rates are affected by economic activity and their long-term impact (based on the underlying causes as well as what has been occurring). As this will have, negative consequences for various regions of the country that was once thriving.

How is the Economy affecting these Levels?

One of the biggest factors that are having a major impact on poverty levels is the underlying amounts of economic activity in the United States. Part of the reason for this, is because the economy has been shifting with an increasing number of immigrants playing an important part. What has been happening is that changing population demographics (i.e. The baby boomers becoming older), have meant that these levels are increasing dramatically. This is problematic, because this is creating labor shortages that are causing costs to increase (which is forcing many companies to hire more immigrants and go to locations where they are lower). Once you have an economic slowdown, these effects can become even more extreme with: more people falling into this category.

A good example of this can be seen by looking no further than, the increases in these levels between: 1993 and 2007. As, they would rise from: 9.3% (in 1993) to 12.5% (in 2007). This is important, because it is showing how these shifts in the labor force have caused immigration to increase, which is having a dramatic impact on these levels. While at the same time, the changes in the population demographics and economic slowdown are making the situation more extreme. Over the course of time, this has played a role in helping to contribute to these increases. The reason why is because, the changing demands within the economy have been forcing many employers to hire more immigrants. This has contributed to the mounting levels of poverty levels during the last 18 years. (Mishel 132-308) Over the course of time, this can have an adverse impact on: productivity (leading to a 2% decline) and it can cause dramatic increases in crime. (Mishel 132-308) Once this takes place, it can create the negative use of human capital resulting in: larger societal and economic challenges in the future (i.e. stagflation / social unrest). This can cause manufacturing and services jobs to leave a particular city, which will affect their ability to produce a wide variety of products. At which point, this will contribute to a loss in economic activity. (Mishel 132-308)

A good example of this can be seen by looking no further than a study that was conducted by the GAO. They found, that poverty can reduce the ability of many individuals to be able to: live productive lives and support themselves. This is significant, because it is illustrating how these levels and the performance of the economy are directly linked. As, this will lead to: a number of social problems and reduced economic activity. At which point, this will have a dramatic impact on: the underlying amounts of prosperity and the standard of living in many communities. (Nilsen)

How this is impacting the United States?

The impact that this is having on the U.S., is that can lead to a number of long-term issues down the road. Most notably: it is causing a wide variety of cities to experience economic blight and the nation is slowly losing its competiveness. The way that this has been contributing to economic ruin is by: adding to losses of manufacturing and service jobs in a number of cities. As, this is causing a reduction in: the opportunities for many regions. Once this occurs, it means that there is the loss of tax revenues with: many affluent families and individuals leaving an area. This is the point that the amount of abandoned properties and crime rates will begin to increase. While local governments, will see a reduction in tax revenues. This leads to declines in the number of services they are providing. As many cities will fall into a downward economic spiral that is difficult to reverse. (Williams)

When you combine the total number of cities that are experiencing similar issues, this will lead to a decrease in the national productivity rate. The reason why is: the various manufacturing and service jobs will reduce the ability of cities to produce a wide variety of products. Once this occurs, it will cause to the loss of economic activity and social opportunity to decline. (Williams) From the sociological perspective, this is having an effect on the individual by: reducing the number of opportunities to improve their lives. As the lower amounts of services is having an impact upon how someone is viewing their situation. Over the course of time, this will affect their mental attitude. As they believe, that there are no opportunities to improve their lives other than becoming involved in criminal activity. This is the point that crime and social unrest will increase. (Williams)