New estimates show higher number living in poverty


A new supplemental U.S. Census measure estimates that a full 16 percent of Americans are living in poverty, an increase from official reports that put 15.1 percent at poverty level.

Forty-nine million Americans struggle to make ends meet under the experimental Supplemental Poverty Measure released Nov. 7, which was designed to better capture the picture of poverty that the current measurement strategy used by the Census.

The official Census measure uses the amount a family spends on food to calculate the Federal Poverty Line, which is used nationally for eligibility into programs such as Medicaid and food stamps. The estimate relies on the assumption that a family spends about a third of its income on food.

The supplemental estimate incorporates how much an average family should spend on food, utilities, clothing and rent.

A family of four with an income of $24, 343 in 2010 is considered to be living in poverty under the supplemental measure, compared with $22,113 in the official measure.

The rising costs of medical care contributed in large part to the rising number of seniors in poverty under the new calculation, Census Bureau economist Kathleen Short told the Washington Post.

In addition, supplemental numbers show the West Coast has the highest percentage of people in poverty, at 19.4 percent.

Officials say that the Supplemental Poverty Measure is not intended to replace the official measurement strategy, but should be used to provide a better picture of the American economy.