For Immediate Release
Karen Conner, (202) 293-5380 x117, email@example.com
Add Inflation Inequality to Why the US Needs to Update the Poverty Measure
WASHINGTON - Is your family food budget based on meals prepared at home by a “frugal housewife?” That’s just one example of the out-of-date poverty measure currently used in the United States. In today’s CEPR Blog, Senior Policy Fellow Shawn Fremstad writes that the US “is the only country in the world that measures present-day poverty by using a poverty line set over half a century ago and since then only adjusted for inflation.”
Fremstad cites new research from the Groundwork Collaborative that there is a second reason that the US poverty measure is inaccurate. When the poverty line is adjusted for inflation, there is an assumption “that the inflation rate for the households most at risk of poverty—including working-class households, households with minor children, and households with disabled members — is the same as the inflation rate for wealthy and upper-class households. A growing body of economic research suggests that this assumption is incorrect.”
“If inflation inequality continues to grow over time, so will the difference between the poverty estimates that only adjust for the CPI-U and ones that take inflation inequality into account,” explains Fremstad.Today’s CEPR Blog by Shawn Fremstad examines the arcane “public charge” immigration rule which is currently in the headlines because of a complicated and frightening expansion of the rule by the Trump administration. A large swath of working-class, US-born citizens married to, or planning to marry, legal immigrants are caught up in this web of contemptuous regulation. “The new rule is so broad that tens of millions of US-born citizens, including perhaps most working-class, US-born citizens, fall within the rule’s definition of public charges,” says Fremstad.
This is the world we live in. This is the world we cover.
Because of people like you, another world is possible. There are many battles to be won, but we will battle them together—all of us. Common Dreams is not your normal news site. We don't survive on clicks. We don't want advertising dollars. We want the world to be a better place. But we can't do it alone. It doesn't work that way. We need you. If you can help today—because every gift of every size matters—please do. Without Your Support We Won't Exist.
Please select a donation method:
The Center for Economic and Policy Research (CEPR) was established in 1999 to promote democratic debate on the most important economic and social issues that affect people's lives. In order for citizens to effectively exercise their voices in a democracy, they should be informed about the problems and choices that they face. CEPR is committed to presenting issues in an accurate and understandable manner, so that the public is better prepared to choose among the various policy options.