Monday, April 25, 2011

Today, with the same minimum wage as the federal Government, New York City’s poverty line still remains higher than that of most other American cities.

It is no secret that New York City is one of the most expensive places to live in America however, the effect these expenses have on the poverty line is significant to that of other cities. Because poverty lines are determined by government agencies, some cities have their own way of calculating these poverty thresholds. The city of New York calculates their poverty line differently from other cities, factoring in things like cell phones, as opposed to just food, clothing, and shelter. Therefore, the poverty line in New York rises above those in other cities because of it’s expensive living.

According to an NPR article, first, the state of New York considers the costs associated with food, clothing shelter and geographic location. The federal poverty measure, on the other hand, is equal to three times the cost of a basic food plan adjusted annually for inflation.

Second, when figuring income, New York takes into consideration a family’s food stamps, housing subsidies, out-of-pocket medical expenses, child-care and transportation costs. It looks at after-tax income, while the U.S. government uses a pre-tax income.

In New York, the average American family receives an income of about $30,000 a year, proving that the residents of New York City have had a chance to bounce back from the recession with more force than other cities in America. In comparison with other American cities, New York’s poverty line yields approximately $10,000 more. With the help from countrywide food banks, those not receiving enough food seek help from food distributing organizations.

Determining the poverty line in the United States is usually found by adding the totally cost of all the essential resources that an average adult consumes in a year. This approach is need-based in that an assessment is made of the minimum expenditure needed to maintain a tolerable life.

Minimum wage in New York City is the same as the federal, $7.25. Though the majority of states in the U.S. decide to match the federal minimum, it is interesting that the state of New York has a lower unemployment rate than the national average. Although the rate has decreased to 8.6% from the nation’s rate of 9.0%, other states within the U.S. have failed to mirror this success.

In Houston, the poverty line for the city has risen dramatically since the recession. The average family living in poverty earns a $22,000 income. Last year, Houston had 8.8% unemployment though the entire stat e was only at 8.3% unemployment. According to the Houston Business Journal, in the past year, the rate in the Houston area has fell to 8.4%. This change is attributed to a statewide gain of 9,600 nonagricultural jobs during the month of April and will stay afloat from the help of the government sector, which added 4,000 jobs.

“It is very clear how extensive the economic difficulties are,” Steve Murdock, the former state demographer who now is on the faculty of Rice University said about the economic standing in Houston. “Health insurance. Job hours worked. Poverty Rates. Income. Thos are all in the wrong direction in terms of what we’d like to see for America.”

New York’s system for determining the poverty threshold was based on recommendations by the National Academy of Sciences. However this still leaves some families struggling to make ends meet. Back in the 60s when poverty lines were created, Americans spent about a third of their income on food. Therefore the government took the cost of a basic food plan and multiplied it by three. Since then, the poverty line has been adjusted for inflation but does not take anything else into consideration. Perhaps this is why New York invented their own way to calculate. Even though Americans today spend far less of their income on food, and much more on things like heath care.

In the state of New York, the cost of cell phones, as well as other utilities is considered while calculating the poverty line, as well as including the basic housing, clothing and food costs. The system then compares that amount to a family’s post-tax income. This is all added to the value of any government benefits, such as food stamps or housing that a family may need.

In an effort to aid those still in need of food, cities have developed food banks across the country. Food banks disperse millions of pounds of food to the need each year. Although the term “food bank” is sometimes used for originations that deliver food directly, most often the banks act as nonprofit wholesalers, donating or selling food at discounted prices to the soup kitchens or food pantries that distribute the food.

The Joel Berg of the Coalition Against Hunger, 700,000 more people get food stamps than did so five years ago. Therefore, food pantries have responded to the recession by opening its door to a new level of people.

“This ever-widening group of people expands to child-care workers, nurse’s aides, real estate agents and secretaries who are facing financial crisis for the first time” Triada Stampas, director of Government Relations, Policy and Public Education for the Food Bank of NYC said.

In 2009, the nation’s food banks received $100 million windfall to purchase more food as part of the stimulus law. This grant was a large boost for the food bank program, which usually receives $250 million a year from Washington. This increase in the amount of food seems huge even for an organization that measures servings by the millions of pounds.
"Quite too often, people make it about politics, taking partisan business into consideration,” Triada Stampas, said. “But these are lives and livelihoods at stake. And the best way to meet these goals is to ensure quality from all angles--government, organizations, and citizen involvement. By working together through all these approaches, we have no choice but to help the food banks and poverty prog

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