By: John Carney, Senior Editor, CNBC.com
Published: Wednesday, 21 Sep 2011
The prolonged economic slump we've been in since before the financial crisis really is different than recent recession experiences, especially when it comes to those who now live in poverty.
Published: Wednesday, 21 Sep 2011
The prolonged economic slump we've been in since before the financial crisis really is different than recent recession experiences, especially when it comes to those who now live in poverty.
The official U.S. poverty rate in
2007 was 12.5 percent. Following the calamities of 2008 it climbed
upward and kept climbing. By 2009, the rate was 14.3 percent. In 2010 it
went to 15.1 percent, according to U.S. Census data reviewed by Pro Publica.
There
has not been so large a portion of Americans in poverty since 1993. But
this time the growth in poverty is different, hitting whites and
suburbia harder than it did during the early 1990s slump. African
Americans, by contrast, appear to be doing better.
The poverty rate for whites was 13 percent in 2010. That compares to 12.2 percent in 1993, according to the Census Bureau.
The suburban poverty rate is 11.8 percent, a level not seen since 1967.
African
Americans appear to be faring relatively better than they did in the
early 1990s. In 1993 the poverty rate for African Americans reached 33.1
percent. Last year it was 27.4 percent.
It's
not entirely clear why African Americans are faring so much better in
this recession than in the last, at least in terms of poverty. It may be
that social and economic progress in the intervening years has left
African Americans less vulnerable to economic downturns.
A
key factor in the rise in suburban poverty may be the fact that the
housing market has played such a central role in the economic slump.
Many
suburbs have seen a vast amount of wealth erased by declining housing
markets and mortgage foreclosures, resulting in a great deal of economic
dislocation. Since white Americans are more likely to own homes than
African Americans, this could also explain why whites have fared worse
than they did in the 1990s while African Americans have fared better.
No comments:
Post a Comment