A Cold Calculation of Poverty

During the 1960's, Mollie Orshansky, a research analyst for the Social Security Adminstration developed a statistical measure of poverty that is widely used now the U.S. Census Bureau.  Orshansky defined the poverty level by taking the cost of a minimum adequate food plan for a family and multiplying the cost by three to allow for other expenses.   The 2005 poverty threshold was calculated to be $19,971 for a family of four.

Based upon independent research, the United Nations defines the poverty level to be equal to 50 percent of the median household income for a country.  In the United States, this would equate to about $22,000 per year which is close in number to the Orshansky calculation.

In other words, there is a large number of people in the United States than are not able to afford even the basic expense of food or housing.

Sources:

Fisher, Gordon, "Poverty Measurement Studies and Alternative Measures."  Sep. 1997.  U.S. Census Bureau.  www.census.gov/hhes/www/povmeas/papers/orshansky.html.

"Income Climbs, Poverty Stabilizes, Uninsured Rate Increases."  29 Aug. 2006.  U.S. Census Bureau News.  www.census.gov/press-release/www/releases/archives/income_wealth/007419.html.