New data from the U.S. Census reveals that millions of American families slipped into poverty last year. This was due to the depletion of government-funded pandemic aid and shrinking incomes, with children being the hardest hit as their poverty rate doubled compared to 2021.
Sharon Parrott, president of the Center on Budget and Policy Priorities, described the surge in poverty as “stunning.” She attributed the sharp increase in child poverty to the discontinuation of the expanded federal Child Tax Credit in 2022 and urged lawmakers to reinstate the benefit.
This increase in poverty affected approximately 15.3 million people across the United States, according to a left-leaning think tank.
The latest Census data highlights the post-pandemic economy’s dual nature, characterized by a robust job market but also rising inflation that has hindered many households.
It also marked the end of all pandemic-era benefits, such as stimulus checks and the Child Tax Credit, which provided up to $300 per child in cash payments to help families during the health crisis.
Sharon Parrott emphasized that policy choices play a critical role in determining the level of poverty and hardship in the country, as demonstrated by the record-breaking rise in the poverty rate, the largest in over 50 years, both overall and for children.
The Census reported that the Supplemental Poverty Measure (SPM), which assesses whether individuals have adequate resources to meet their needs, stood at 12.4% for U.S. households in 2022, representing a 4.6 percentage point increase from the previous year.
As for child poverty, as measured by the SPM, it surged from a historic low of 5.2% in 2021 to 12.4% in 2022. This is the most significant change in child poverty since the Census began tracking the SPM in 2009.
The SPM takes into account income and the impact of non-cash assistance, such as food aid and housing support, while also deducting certain expenses like medical costs, childcare, and commuting costs.
If the expanded Child Tax Credit had been reinstated, it could have prevented about 3 million additional children from falling into poverty last year, reducing child poverty from 12.4% to 8.4%, according to the CBPP.
Additionally, the Census reported that U.S. households earned less in 2022, with the median household income dropping by 2.3% from 2021. This marks the third consecutive year of declining incomes, a trend that is particularly concerning because wages are not keeping pace with inflation.
In terms of median household income, Asian Americans had the highest at nearly $109,000, while Black Americans had the lowest at around $53,000.
READ MORE
Shocking! Texas Student Suspended for Bold Locs Days After Crown Act Passes – Outrage Ensues!