The Tide Of Poverty Is Rising

The USA Today editorial board comments on the recent Census Bureau report on poverty. The result… although the economy is growing, it is not reducing the number of people who live in poverty in America. 37 million people—an increase of 4 million more since 2001—are poor in our country. The increase of poverty means an increase in homelessness.

Here is the beginning of the USA Today’s piece:

There's an old saying that "a rising tide lifts all boats." Popularized by President John F. Kennedy, it generally refers to how a growing economy benefits everyone.

These days, however, it might need to be revised to say: "A rising tide lifts all yachts." Or perhaps it should be retired entirely, because it no longer appears to be accurate.

That's the inescapable conclusion from Tuesday's Census Bureau report on poverty. Some 37 million Americans lived below the poverty line ($19,971 for a family of four) in 2005 — that's 4 million more than at the height of the last recession, in 2001.

The same report showed that the median annual income of $46,326 was essentially unchanged from where it was in 2001, and that the ranks of those without health insurance, now at 46.6 million, continue to grow.

What makes the numbers so troubling is that they come four years into an economic recovery that by other measures has been robust. From 2001 to 2005, the gross output of the economy increased by about 12% above the rate of inflation, worker productivity surged and corporate profits doubled.

Traditionally, those trends have been the key to lifting living standards for everyone — the cornerstone of a stable, successful society. But not this time. Technological innovation and global competition have hurt wages for low-skilled workers while creating new opportunities for skilled workers.

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