Here’s How Poverty May Become a Thing of the Past

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Source: Andrew Burton/Getty Images
Source: Andrew Burton/Getty Images

Andrew Burton/Getty Images[/caption]

One issue that has always faced every society is that of poverty. In systems such as ours, especially in the United States, the ‘haves’ and ‘have-nots’ separate themselves, shaping our culture, education systems, and even the way our cities are physically laid out. There always has been poverty in some form throughout our history, and for most societies, the majority of people have unfortunately been caught on the outside looking in while others prosper.

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In America, especially following the financial crisis and subsequent recession, poverty and inequality have been two major points interest. The growing rift in income inequality has been made very public, and is being blamed as the major factor behind growing poverty levels and the destruction of the middle class. Income inequality itself has been increasing for a number of reasons, but especially over the past several years, it has led to poverty levels hitting unprecedented numbers, especially in modern times.

The U.S. Department of Health and Human Services has several parameters for identifying and classifying poverty, the most well-known being income levels that are commonly referred to as the ‘poverty line.’ This figure is based on income, depending on family size, and depending on state of residence. Alaska and Hawaii have their own specific income levels, while the remainder of the country, including the District of Columbia, are subject to the same parameters. To see how these figures work, an example of a family living below the poverty line would be a household of three people, living in Iowa and making less than $19,790 per year.

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Those numbers might seem incredibly low, but there is also a huge amount of people who are experiencing poverty as a daily reality. Charitable organization Feeding America provides some insight into just how many people are effected by poverty, detailing that in 2012, 15 percent of the population lived under the poverty line. More than 1 out of every 5 children under 18 also lived under the figure, and when you factor in food insecurity, the numbers grow substantially. By that measure, 49 million people lived in food insecure households.

The Federal Reserve Bank of Boston, like many other financial institutions, have a vested interest in keeping track of the numbers of impoverished individuals living in the U.S. Not only that, but also taking a look at the reasons behind their struggles and what exactly it is that keeps people from prosperity. The bank recently published its thoughts on the trends and themes in poverty, and what can be done to stop it. Five major themes are pointed out, including stigma against those getting a ‘free ride;’ a culture of dependency; personal responsibility and bootstrapping; efforts to cut public assistance; and thrift, training, and temperance.