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Poorest poor in U.S. hits new record: 1 in 15 people

WASHINGTON — The ranks of America's poorest poor has climbed to a record high — 1 in 15 people — spread widely across metropolitan areas as the housing bust pushed many inner-city poor into suburbs and other outlying places and shriveled jobs and income.

New census data paint a stark portrait of the nation's haves and have-nots at a time when unemployment remains persistently high. It comes a week before the government releases first-ever economic data that will show more Hispanics, elderly and working-age poor have fallen into poverty.

In all, the numbers underscore the breadth and scope by which the downturn has reached further into mainstream America.

"There now really is no unaffected group, except maybe the very top income earners," said Robert Moffitt, a professor of economics at Johns Hopkins University. "Recessions are supposed to be temporary, and when it's over, everything returns to where it was before. But the worry now is that the downturn, which will end eventually, will have long-lasting effects on families who lose jobs, become worse off and can't recover."

Traditional inner-city black ghettos are thinning out and changing, drawing in impoverished Hispanics who have low-wage jobs or are unemployed. Neighborhoods with poverty rates of at least 40 percent are stretching over broader areas, increasing in suburbs at twice the rate of cities.

Once-booming Sun Belt metro areas are now seeing some of the biggest jumps in concentrated poverty.

About 20.5 million Americans, or 6.7 percent of the U.S. population, make up the poorest poor, defined as those at 50 percent or less of the official poverty level. Those living in deep poverty represent nearly half of the 46.2 million people scraping by below the poverty line. In 2010, the poorest poor meant an income of $5,570 or less for an individual and $11,157 for a family of four. The poverty rate in Florida for 2009-2010 was 15.3 percent.

The 6.7 percent share is the highest in the 35 years that the Census Bureau has maintained such records, surpassing previous highs in 2009 and 1993 of just over 6 percent.

Broken down by states, 40 states and the District of Columbia had increases in the poorest poor since 2007, and none saw decreases.

Poorest poor in U.S. hits new record: 1 in 15 people 11/02/11 [Last modified: Wednesday, November 2, 2011 11:05pm]

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