Friday, September 11, 2009

Poverty up, income down

The New York Times reported yesterday that the poverty rate, as calculated by the Census Bureau's Current Population Survey, rose to 13.2 percent in 2008 from 12.7 percent in 2007. This is the highest the poverty rate has been since 1997.

Whether one lives in poverty is determined by family size and income. Therefore, it's no surprise median household income dropped in 2008 from the year before, falling from $52,163 to $50,303. A decrease in nominal, or actual, income is one thing; however, when considering real, or inflation-adjusted, income, the drop is even more severe.

If you're interested in the full Census Bureau report, please click here.

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On a related note, the Census Bureau's Small Area Income and Poverty Estimates program produces poverty rates for every county and county equivalent in the United States. In 2007 (the most recent year for which data are available), South Dakota's Ziebach County had the highest rate of poverty in the country at 55.9 percent. Ziebach County is part of the Cheyenne River Reservation.

South Dakota has three additional counties among the top 10 with the highest rates of poverty nationwide:
  • #2, Buffalo County, Crow Creek Reservation, 50.3 percent
  • #4, Shannon County, Pine Ridge Reservation, 47.4 percent
  • #7, Todd County, Rosebud Reservation, 42.8 percent
Keep in mind there are over 3,100 counties and equivalents in the United States. The living conditions on reservations are often compared to those of third-world countries; economic indicators certainly substantiate these anecdotal reports, including my own here on the Rosebud.

What's even more fascinating (and sad) is the level of economic disparity just here in South Dakota. Lincoln County, home to a portion of Sioux Falls and its suburbs, tied for the sixth-lowest poverty rate in the entire country in 2007 at 3.7 percent. South Dakota's statewide rate was 13.2 percent.

Any guesses as to the county (or general area of the country) with the lowest rate of poverty?

2 comments:

Daniel Prendable said...

Here are my guesses for the two counties with the lowest poverty rates:
1) Orange County, CA
2) Fairfax County, VA

Am I anywhere close to being right?

As for the general area of the country with the lowest poverty rate, I'd guess the Northeastern states are pretty low in poverty. Maybe Connecticut, or New Hampshire.

Great post Brian, really interesting, and disparaging, stuff.

Brian Laurent said...

Finally, a guess!

As far as states go, you were right on the mark. New Hampshire and Connecticut had the lowest rates. Mississippi had the highest.

Your guess of Fairfax County placed you in the appropriate area of the country as far as individual counties go. Here are the top five:

1. Douglas County, CO: 2.4%
T2. Loudoun County, VA: 3.0%
T2. Falls Church city, VA: 3.0%
4. Los Alamos County, NM: 3.1%
5. Somerset County, NJ: 3.3%