User:Cantelli25/Poverty


 * Poverty
 * Quintin Cantelli
 * Economics 12:00 – 12:55
 * October 3, 2016

Since the poverty line was first established in the 1960’s, there has been a rapid increase in the amount of citizens living at the poverty level. People all over the country are experiencing this issue that is causing a negative impact on society. Poverty is defined as, “a relative concept that depends on the incomes of others in that area.” A person living under the poverty line in America today can have a higher living standard than an average person in the rest of the country depending on what government assistance they receive. Poverty is a complete reflection of the overall health of a country. History has shown that America has had its ups and downs throughout the past century. In the 1930’s, during the Great Depression, America started aid relief programs for citizens across the country. These aid relief programs continued on throughout the years, until the poverty line was established in the 1960’s. The poverty line was based on surveys of American families where the government was able to determine what percent of income families spent on food and how inflation would affect households as well. Since 1959, any reduction of the poverty rate can be attributed to economic strengthening for those whose incomes were below the economic norm. In turn, this would cause a periodic rise in the economy, also known as inflation.

Today Americans who have fallen into poverty have been offered aid to help with expenses and become financially stable once again. There are three types of government aid: TANF, SSI, and Earned Income Tax. The main aid option, known as TANF, is the “Temporary Aid to Needy Families.” This government program grants money to the states to work with the poor and support anyone who may qualify for aid. The government uses TANF as the system to grant welfare checks to the citizens in need of aid. A second form of aid used by the government is known as “Supplemental Security Income” (SSI). This program gives money to widows, orphans, and the disabled. SSI helps those who cannot live on their own under one fixed income. The final government aid program is known as the “Earned Income Tax Credit.” This is a program that gives recipients money in the form of a tax refund, which is much more than the taxes they withheld. Government programs have been used since the Great Depression, and will continue to thrive until the government equals out.