US poverty declining

The decline should be looked at in light of the fact that during 2000 it was 11.3 so the decline is from very high levels. At the same time as the article notes the number of people not covered by health insurance is growing.

U.S. poverty rate declines significantly

By STEPHEN OHLEMACHER, Associated Press Writer
50 minutes ago

Five years into a national economic recovery, the
share of Americans living in poverty finally dropped.

The nation's poverty rate was 12.3 percent in 2006,
down from 12.6 percent a year before, the Census
Bureau reported Tuesday. Median household income
increased slightly, to $48,200.

The numbers provided some good economic news at a time
when financial markets have been rattled by a slumping
housing market. But they were tempered by an increase
in the number of Americans without health insurance,
from 44.8 million in 2005 to 47 million last year.

Some advocates said the numbers were evidence of an
uneven economy that is leaving many Americans behind.

"Too many Americans find themselves still stuck in the
deep hole dug by economic policies favoring the
wealthy," said Rep. Charles B. Rangel, D-N.Y.,
chairman of the House Ways and Means Committee.
"Income remains lower than it was six years ago,
poverty is higher, and the number of Americans without
health insurance continues to grow."

But Douglas Besharov, a resident scholar at the
conservative American Enterprise Institute, said there
is a lot of good news in the numbers.

"We're looking at a situation where unemployment was
down, and it was down for single mothers, who make up
a substantial portion of the people in poverty,"
Besharov said. "We need a good economy. That's not all
we need, but we should not complain when it helps
lower poverty."

The last significant decline in the poverty rate came
in 2000, during the Clinton administration, when it
went from 11.9 percent to 11.3 percent.

The poverty rate increased every year for the next
four years, peaking at 12.7 percent in 2004. It was
12.6 percent in 2005, but Census officials said that
change was statistically insignificant.

The poverty level is the official measure used to
decide eligibility for federal health, housing,
nutrition and child care benefits. It differs by
family size and makeup. For a family of four with two
children, for example, the poverty level is $20,444.

The poverty rate — the percentage of people living
below poverty — helps shape the debate on the health
of the nation's economy.

Democrats on Capitol Hill said the insurance numbers
justify spending more money for a popular government
health insurance program for children.

Both chambers of Congress recently passed bills that
would dramatically increase funding for the Children's
Health Insurance Program, known as SCHIP. The Bush
administration, however, opposes both measures saying
they would result in people abandoning private
coverage for public coverage for children.

The share of Americans without health insurance hit
15.8 percent last year, the highest percentage since
1998. In 2005, 15.3 percent were without insurance.

The annual increase was fueled mainly by a decline in
the share of workers covered by employer-provided
health insurance, said David Johnson, chief of the
Census Bureau's Housing and Household Economic
Statistics Division.

Two Democrats running for president said the insurance
numbers point to weaknesses in the nation's health
care system.

"These statistics show what most Americans know: tens
of millions of our fellow citizens are completely left
out of the economic progress enjoyed by the
individuals and corporations on the very top," said
Democrat John Edwards, who has made eradicating
poverty a centerpiece of his campaign. "We need truly
universal health care and a national effort to
eliminate poverty."

Sen. Hillary Rodham Clinton noted that there were a
lot fewer people without health insurance when she
first addressed the issue as first lady. In 1993,
there were 39.7 million Americans without health
insurance, according to the Census Bureau.

"It is an even deeper outrage today," she said.

The Census Bureau on Tuesday released 2006 income and
poverty figures for all the states and every city and
county with a population of 65,000 or more.

Among the findings:

_Maryland led the country with a median household
income of $65,144. It was followed by New Jersey,
Connecticut, Hawaii and Massachusetts.

_Mississippi had the lowest median income, at $34,473.
It was followed by West Virginia, Arkansas, Oklahoma
and Alabama.

_Mississippi had the highest poverty rate, at 21.1
percent. It was followed by Louisiana, New Mexico,
Arkansas and West Virginia.

_Maryland had the lowest poverty rate, at 7.8 percent.
It was followed by New Hampshire, Connecticut, New
Jersey and Hawaii.

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