How we measure poverty matters — and we can do better
Posted by Spotlight on Poverty and Opportunity on January 28, 2025
Vox examines poverty in America and finds it is difficult to measure accurately due to the limitations of outdated methods like the federal poverty line, which fail to account for modern expenses, noncash benefits, and geographic cost differences. The Supplemental Poverty Measure (SPM) offers a more detailed perspective by including housing, utilities, and social benefits, showing significant progress in reducing poverty over decades. However, millions of Americans still face severe challenges, such as skyrocketing housing costs, with many spending over 30-50% of their income on rent. These high costs, often excluded from poverty metrics, underscore the need for targeted solutions to address economic struggles beyond income thresholds. Ultimately, addressing poverty requires a commitment to policies that ensure all individuals can achieve a decent standard of living, regardless of how it is measured.
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