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  1. 1. Poverty Economics
  2. 2. What Comes to Mind When you Think of Poverty? <ul><li>In one paragraph, describe what you think it means to live in “poverty.” </li></ul><ul><li>What would it look like, sound like, be like…etc. </li></ul><ul><li>Draw a small illustration to display your understanding of poverty. </li></ul>
  3. 3. The Poor <ul><li>Census Bureau determines how many Americans live in poverty </li></ul><ul><li>Poverty Threshold </li></ul><ul><ul><li>A poor family is one whose total income is less than the amount required to satisfy the family’s minimum needs </li></ul></ul><ul><ul><li>The income level below which income is insufficient to support a family or household </li></ul></ul><ul><ul><li>Varies with the size of the family </li></ul></ul>
  4. 4. Poverty Rate <ul><li>See chart on p. 346 </li></ul><ul><li>The percentage of people who live in households with income below the official poverty threshold </li></ul><ul><li>Government decides whom they consider to be poor, and what causes it </li></ul><ul><li>Depends on </li></ul><ul><ul><li>Race/Ethnicity </li></ul></ul><ul><ul><li>Type of Family </li></ul></ul><ul><ul><li>Age </li></ul></ul><ul><ul><li>Residence </li></ul></ul>
  5. 5. Causes of Poverty <ul><li>Millions of Americans are unemployed </li></ul><ul><ul><li>Various reasons </li></ul></ul><ul><ul><ul><li>Health and disability reasons </li></ul></ul></ul><ul><li>Many poor adults have jobs-”working poor” </li></ul><ul><ul><li>Low wages and limited work schedule </li></ul></ul><ul><li>Sometimes minimum wage is not enough </li></ul>
  6. 6. Lack of Education <ul><li>Big mistake #1: No High School Diploma </li></ul><ul><li>Graduates earn about 1/3 more than dropouts </li></ul><ul><li>College Graduates earn 3 times as much as dropouts </li></ul>
  7. 7. Location <ul><li>Most racial minorities are concentrated in the inner cities, far from the higher-wage jobs in the suburbs </li></ul><ul><li>Most inner city residents do not own cars-rely on public transit </li></ul><ul><li>Usually earn less than people not living in the inner city </li></ul><ul><li>Similar obstacles for rural residents </li></ul><ul><ul><li>Lack of jobs in rural areas </li></ul></ul>
  8. 8. Racial and Gender Discrimination <ul><li>White workers generally earn more than minority workers </li></ul><ul><li>Women currently earn .83 to Men’s $1.00 in the workforce (2007) </li></ul><ul><li>Inequality results from racial and gender discrimination throughout history </li></ul><ul><li>This kind is diminishing over time </li></ul>
  9. 9. Economic Shifts <ul><li>People who lack education and skills are not very productive workers </li></ul><ul><ul><li>“ last hired, first fired” </li></ul></ul><ul><li>First to lose jobs when the economy slows down </li></ul><ul><li>Ongoing decline of manufacturing jobs and the rise of service and high-technology jobs </li></ul><ul><li>Aka….High School Education is no longer enough in our changing economy! </li></ul>If Frank the Tank can make it into Post-Secondary Education, then YOU can too!
  10. 10. Shifts in Family Structure <ul><li>Median household income is about $45,000 a year. </li></ul><ul><ul><li>Meaning half live above, half live below </li></ul></ul><ul><li>Divorce is one of the number one causes of poverty </li></ul><ul><li>Increased number of unmarried/single parents </li></ul><ul><li>These increased rates lead to more poverty </li></ul>
  11. 11. Assignment! (To keep you out of intellectual poverty  ) <ul><li>People with few skills and little education are more likely to be unemployed or poor. The contrary is also true. </li></ul><ul><li>Research what skills and college degrees you think will be the most marketable in the next ten years. </li></ul><ul><li>Write a newspaper article describing/discussing your findings. </li></ul><ul><ul><li>Use a catchy headline </li></ul></ul><ul><ul><li>Use facts </li></ul></ul><ul><ul><li>Use references (2 resources) </li></ul></ul><ul><ul><ul><li>Listed at bottom of article (no wikipedia) </li></ul></ul></ul><ul><ul><li>½ page typed article </li></ul></ul><ul><ul><li>Illustration optional but preferred  </li></ul></ul>