Chapter 7

Poverty
History Social Welfare Policy
Guilandia Aristilde
Kenya Akins
Lynetta James
Jazmine Harris
Introduction
In this chapter you will learn,

● The extent on poverty in America.

● The reasons why poverty exists.
● The social welfare programs designed to help.
What is poverty?
● The state of being extremely poor.
● Not having enough money to meet basic needs or access to resources.

There are 2 measures of poverty:

● Absolute Poverty
● Relative Poverty

In the US, an absolute measure of poverty is used.

● Poverty threshold, the dollar amount set for the federal poverty measure.
Measures of Poverty
Two ways to measures of poverty

1.) Absolute measure of poverty - uses a fixed, predetermined amount below which
people are defined as poor.

2.) Relative measure of poverty - uses societal standards to assess the minimum needed
for a reasonable living situation, and anything less than that standard is considered
poor.

*In the United States, an absolute measure of poverty is used*

● In 1963, the Social Security Administration (SSA) attempted to define what the
necessary minimum income was for a family. Two pieces of data were used to
determine the official poverty threshold, or the dollar amount set for the federal
poverty measure. It can also be called the poverty line

● The first piece of data used to develop the poverty threshold was the amount of
money it took to feed a family and the second statistic was the proportion of family
income that went toward food.

● *The average family spent one-third of their income for food. Therefore, the line was
developed using the estimate for the economy food plan and multiplying that by
three.
 Why Do We Use Absolute Measure
Instead of a Relative Measure
Absolute measure is fixed and less debatable. Viewing poverty from a relative perspective
involves a host of variables. For example, is a telephone a luxury or a necessity? If you
have small children or are looking for a job, a phone will most likely feel very much like a
necessity. For many parents, a portable cellular phone is a necessity. The knowledge that
they can be reached at any time if an emergency should arise feels indispensable. If a
cellular phone is a relative necessity, many people would define poverty as the lack of
resources to acquire such a phone
How Many People Are Poor?
● According to the official definition of poverty, in 2017, almost 40 million people were below the
poverty threshold or 12.3 percent of the population, or one in eight people in the United States

● The largest group of poor people was children and 1/3 of those who were poor were under the age of
18 years.

● 12% of those who were poor were over 65 years of age.

● Therefore, almost half the people who are poor in this country are in the vulnerable age categories of
youth or the aged.

● Poverty during the early 1960s, before the major federal social welfare response of the War on Poverty,
affected over 20 percent of the population. However, government intervention in the form of cash
assistance, in-kind benefits, and prevention efforts seems to have made a difference.
Who are the poor?
The Working Poor

● People who live in poverty although they are employed.

Juvenilization of poverty

● Children have been the group most likely to be poor in this country.
● Poor health, lower education, dangerous living situations, likelihood of
disadvantaged life outcomes.

Feminization of poverty

● Likelihood that women would be in the state of poverty than men.

What causes Poverty?

● Values and beliefs play a role in how we view poverty.

○ Lack of education, Unforeseen mishaps, low-wage jobs,
Dependency.
● The ideas of the culture of poverty and blaming the victim
○ These two perspectives take a personal or individual view
of the cause of poverty.
 Programs to Ensure Economic Stability
● Temporary Assistance for Needy Families-The first federal assistance program came from an initiative
called Mothers Aid Law, which offered limited resources to women who were widows and no source of
income. This program shortly after expanded to the, Aid to Dependent Children (ADC). This agency served
women and children who experienced the lost of the breadwinner and were in need of financial assistance to
help support their families. This program shortly after expanded to the, Aid to Dependent Children (ADC). In
the Aid to Families with Dependent Children (AFDC) This program helped single parents regardless of the
marital status. It sound expanded to include needy families that had two-parent households.
● Family Support Act
● Temporary Assistance for Needy Families (TANF)
 Programs Providing In- Kind Support
Supplemental Nutrition and Assistance Programs

● Supplemental Food program for women infants and children WIC.

Programs Providing Economic Stability

● Personal Responsibility and Work Opportunities Act- Mission is to change

demographics and perception of AFDC.
● More women entered the labor market when transitioning to PRWORA pr
 HOMELESSNESS & CAUSES OF POVERTY

• The most severe form of poverty is to be

• Human capital
homeless.
• Unfortunate • One of the biggest contributors of
• Macroeconomics homelessness is affordable housing.

• Racism • Homeless- Living without a permanent

residence.
• Dependency
• Single room occupancies (SROs)-Rental
• Lack of political power of single rooms by individuals and
families which lack kitchen facilities.
Earned Income Tax Credit (EITC)
● A federal program established to help families with full-time year-round
workers above poverty levels.
● This program was created in 1975 to aid families with dependent children
in which one or more family members work.
● Minimum wage is the federally mandated lowest hourly wage that
employers may legally pay their workers.

Supplemental Security Income

● Provides cash assistance to any person 65 and older who has a disability
or is blind.
 References
Haimes, A. (2018, March 5). Mothers aid. Social Welfare History Project. Retrieved February 22, 2022, from
https://socialwelfare.library.vcu.edu/programs/mothers-aid/