TheHeartlandAllianceMidAmericaInstituteonPoverty

Nationally,OverallPovertyRateUnchanged,Household
IncomeRises,NumberofUninsuredDownin2007
HeartlandAlliancesanalysisofnewlyreleased2007datafromtheU.S.CensusBureaurevealsthat
hardshipcontinuestobearealityforover37millionpeopleintheUnitedStates.Millionsoffamilies
arestrugglingtomakesendsmeet,andfartoomanyarelivinginextremepovertywithincomes
belowhalfofthepovertyline.Despite6yearsofeconomicexpansion,thepovertyrateremainshigher
todaythanitwasin2000,andmiddleandlowincomeearnersareworseoffthantheywereatthe
endofthelastexpansion.TheAmericanDreamisatrisk.
TheeconomicpicturetodayisevengloomierthantheCensusreport,whichcovers2007whenthe
economygrewandunemploymentaveragedalowof4.6%nationally.Thingshaveworsenedsince
then.Unemploymentisskyrocketing,realincomesaredown,moreandmorehouseholdsarerelying
onFoodStampstomakeendsmeet,andhardshipisdeepeningasevidencedbyincomesnotkeeping
pacewithincreasingcostsforessentialslikehousing,healthcare,andutilities.
Helpforthoseleftoutisurgentlyneeded.Weneedboldleadershipandthoughtfulstrategiesby
governmenttoreducepoverty.
PovertyintheUnitedStates,2007

OverallPovertyRateUnchangedfrom2006,StillAbove2000Level:Thenationsofficial
povertyratein2007was12.5%,notstatisticallydifferentfrom2006.Therewere37.3million
peopleinpovertyin2007,upfrom36.5millionin2006.

ManyContinuetoFallFarBelowthePovertyLine:In2007,5.2%,or15.6millionpeople
livedinextremepoverty,withincomesbelowhalfofthepovertyline.Thisgrouprepresents
41.8%ofthepovertypopulation.Theincomedeficitforfamiliesinpoverty(thedifferencein
dollarsbetweenafamilysincomeandthepovertythreshold)averaged$8,523in2007,higherin
realtermsthanin2006($8,032).

HispanicPovertyIncreasedSince2006:ForHispanics,21.5%wereinpovertyin2007,up
from20.6%in2006.PovertyratesremainedstatisticallyunchangedfornonHispanicwhites
(8.2%),blacks(24.5%)andAsians(10.2%)in2007.

ChildPovertyIncreasedSince2006:Forchildrenyoungerthan18,thepovertyrateincreased
from17.4%in2006to18.0%in2007.Thenumberofchildreninpovertyclimbedby500,000,
from12.8millionin2006to13.3millionin2007.Forthose18to64,however,thenumberin
povertyremainedstatisticallyunchanged,at20.4millionin2007.Forpeople65andolderand
those18to64,thepovertyratealsoremainedstatisticallyunchangedat9.7%and10.9%,
respectively.

MedianHouseholdIncomeandEarningsintheUnitedStates,2007

RealMedianHouseholdIncomeIncreased,ThoughisStillLowforBlackandHispanic
Households:RealmedianhouseholdincomeintheUnitedStatesclimbed1.3%between2006
and2007,from$49,568to$50,233.However,medianincomeforworkingagehouseholds
thoseheadedbysomeoneunder65remainedstatisticallyunchanged.Blackhouseholdshadthe
lowestmedianincomein2007($33,916)followedbyHispanichouseholds($38,679).This
comparestothemedianincomeof$54,920fornonHispanicwhitehouseholdsand$66,103for
Asianhouseholds.

RealMedianEarningsDeclineReversed,ThoughWomensEarningsStillLag
SignificantlyBehindMenDespiteProgress:Realmedianearningsofmenwhoworkedfull
time,yearroundclimbedbetween2006and2007,from$43,460to$45,113.Forwomen,the
correspondingincreasewasfrom$33,437to$35,102.Theseincreasesinearningsfollow3years
ofannualdeclineinrealearningsforbothmenandwomen.Theratioofearningsofwomenwho

TheHeartlandAllianceMidAmericaInstituteonPoverty

workedfulltime,yearroundwas78percentofthatforcorrespondingmenin2007.Thisishigher
thanthepreviousalltimehighof76.0%in2001.
HealthInsuranceCoverageintheUnitedStates,2007

TheNumberofPeopleWithoutHealthInsuranceCoverageDeclined,LargelyasaResult
ofGovernmentInsurance:Thenumberofuninsuredfellfrom47million(15.8%)in2006to
45.7million(15.3%)in2007.Thenumberofuninsuredchildrendeclinedfrom8.7million(11.7%)
in2006to8.1million(11.0%)in2007.Thesedeclinesarelargelyduetoincreasesinpeople
receivinggovernmenthealthinsurance,whichroseto83millionin2007,upfrom80.3millionin
2006.

Poverty,IncomeandHealthInsuranceintheMidwest,2007
TheMidweststatesincludedinthissectionincludeIllinois,Indiana,Iowa,Kansas,Michigan,
Minnesota,Missouri,Nebraska,NorthDakota,Ohio,SouthDakota,andWisconsin.

ThoughMidwestOverallPovertyRemainedStatic,MidwestisHometoPoorestCitiesin
theNation:In2007,thepovertyratefortheMidwest(11.1%)wasstatisticallyunchangedfrom
2006.MissouriandKansasweretwoofonly12stateswherepovertyratesdeclinedfromthe2006
tothe2007AmericanCommunitySurvey(ACS).Theonlystatewherethepovertyrateincreased
wasMichigan.Inlookingatcities,9ofthetop20poorestplacesinthenationareintheMidwest.
Amonglargecities(250,000ormorepopulation),Detroithadthehighestpovertyrate(33.8%).
Amongthesmallercities(65,000to249,999population),Bloomington,Indiana(41.6%)hada
higherpovertyratepointestimatethanotherplaces.

WhileOverallMidwestMedianIncomeIncreased,MidwestCitieshaveLowestIncomes
intheNation:Between2006and2007,realmedianhouseholdincomeroseintheMidwestby
2.2%($50,277).Thiswasthefirstannualincreaseinincomesince1999.Michiganwastheonly
stateinthenationthatexperiencedadeclineinincomein2007.Inlookingatcities,9ofthetop
20lowestincomeplacesinthenationareintheMidwest.Forlargeplaces(250,000ormore
people)Detroithadamongthelowestincomeinthenationat$28,097.Forsmallerplaces(65,000
to249,999people),Youngstown,Ohiohadamongthelowestincomesinthenationat$24,941.

RatesofUninsuredHoldSteady,WithaNumberofMidwestStatesLeadingtheNation
WithLowUninsuredRates:Uninsuredratesdeclinedfrom2006ineveryregionexceptforthe
Midwest,wherethechangewasnotstatisticallysignificant.TheMidwestuninsuredrateis11.4%.
AnumberofMidwesternstateshavethelowestratesofuninsuredinthenation:Minnesota
(9.5%)Wisconsin(10.8%)andIowa(11.0%).

Poverty,IncomeandHealthInsuranceinIllinois,2007

OverallPovertyandChildPovertyhasDecreasedfrom2006,StillAbove2000Level:
Illinoispovertyratein2007was11.9%,adecreasefrom12.3%in2006,yetstillabovethe
10.7%of2000.Therewere1,496,248peopleinpovertyinIllinoisin2007.Forchildrenyounger
than18,thepovertyratedecreasedfrom16.8%in2006to16.3%,or511,142children,in2007,
butisstillwellabovethe2000rateof14.0%.

ManyContinuetoFallFarBelowthePovertyLine:In2007,5.3%,or667,578peoplelivedin
extremepoverty,withincomesbelowhalfofthepovertyline(below$10,325forafamilyoffour).
Thisisadecreasefrom5.5%in2006,butstillabovethe5.1%of2000.

OverTwoMillionareatRiskofFallingintoPovertyAnadditional16.2%,or2,029,262
people,areatriskoffallingintopovertyinIllinois.Consequently,morethan1in4individualsin
Illinoisareeitherinpovertyoratriskofbeinginpoverty.

RealMedianHouseholdIncomeIncreasedslightly,thoughstillfarbelow2000.Real
medianhouseholdincomeinIllinoisrose$643to$54,124in2007,buthasdeclinedby$3,852
since2000(whenadjustedforinflation).

TheHeartlandAllianceMidAmericaInstituteonPoverty

TheNumberofPeopleWithoutHealthInsuranceCoverageDeclined,LargelyasAResult
ofGovernmentInsurance:Thenumberofuninsuredfellto13.7%in2007from13.9%in2006,
butisstillabovetheuninsuredrateof13.0%in2000.

TheHeartlandAllianceMidAmericaInstituteonPoverty

Midwestcitiesareunfortunatelywellrepresentedonsomeofthemostundesirabletop20lists:

9ofthetop20PoorestPlaces*intheNationareintheMidwest
PLACE
POVERTYRATE
Bloomington,IN
41.6%
Camden,NJ
38.2%
Brownsville,TX
36.5%
Gainesville,FL
36.0%
Kalamazoo,MI
35.5%
Flint,MI
35.5%
Reading,PA
34.5%
Macon,GA
33.0%
Detroit,MI
33.8%
Youngstown,OH
32.6%
Pontiac,MI
32.4%
Cleveland,OH
29.5%
Buffalo,NY
28.7%
ElPaso,TX
27.4%
Memphis,TN
26.2%
Miami,FL
25.5%
Milwaukee,WI
24.4%
Newark,NJ
23.9%
Philadelphia,PA
23.8%
Cincinnati,OH
23.5%
*withpopulationsof65,000ormore
9ofthetop20LowestIncomePlaces*intheNationareintheMidwest
PLACE
MEDIANINCOME
Toledo,OH
$35,216
Memphis,TN
$35,143
Newark,NJ
$34,452
St.Louis,MO
$34,191
Cincinnati,OH
$33,006
Pittsburgh,PA
$32,363
Buffalo,NY
$29,706
Miami,FL
$29,075
Cleveland,OH
$28,512
Detroit,MI
$28,097
Passaic,NJ
$27,691
Hartford,CT
$27,654
Gainesville,FL
$27,479
Gary,IN
$26,725
Macon,GA
$26,555
Flint,MI
$26,143
Reading,PA
$25,536
Camden,NJ
$25,389
Bloomington,IN
$25,225
Youngstown,OH
$24,941
*withpopulationsof65,000ormore

TheHeartlandAllianceMidAmericaInstituteonPoverty

PovertyinChicago,2007

OverallPovertyRatehasDecreasedfrom2006,StillAbove2000Level:Chicagos
officialpovertyratein2007was20.5%,adecreasefrom21.2%in2006,yetstillabovethe
19.6%of2000.Therewere550,580peopleinpovertyinChicagoin2007.

ManyContinuetoFallFarBelowthePovertyLine:In2007,9.1%,or244,498people
livedinextremepoverty,withincomesbelowhalfofthepovertyline(below$10,325fora
familyoffour).Thisisadecreasefrom9.8%in2006,and10.1%in2000.

ChildPovertyhasDecreaseSince2006:Forchildrenyoungerthan18,thepovertyrate
decreasedto30.6%in2007from31.1%in2006,butisupfrom28.1%in2000.

PovertyintheChicagoArea,2007

OverallPovertyRatehasDecreasedfrom2006,StillAbove2000Level:TheChicago
areasofficialpovertyratein2007was11.3%,adecreasefrom11.8%in2006,yetstillabove
the10.6%of2000.Therewere936,259peopleinpovertyintheChicagoareain2007.

ManyContinuetoFallFarBelowthePovertyLine:In2007,5.0%,or416,119people
livedinextremepoverty,withincomesbelowhalfofthepovertyline(below$10,325fora
familyoffour).Thisisadecreasefrom5.4%in2006,and5.3%in2000.

Over1.2MillionareatRiskofFallingintoPovertyAnadditional15.4%,or
1,277,860people,areatriskoffallingintopovertyintheChicagoarea.Consequently,more
than1in4individualsintheChicagoareaareeitherinpovertyoratriskofbeinginpoverty.

Analysisderivedfrom:
Income,Poverty,andHealthInsuranceCoverageintheUnitedStates,2007
Income,Earnings,andPovertyDatafromthe2007AmericanCommunitySurvey