While statistics can't really convey the struggles associated with living in poverty, they can provide a framework for discussing income inequality in the United States. The U.S. Census Bureau keeps track of the number of people living in poverty to help determine the budgets for assistance programs like SNAP and WIC.
Poverty at a Glance
In 2009, the most recent year for which complete statistics are available by the U.S. Census Bureau (USCB), the official poverty rate was 14.3%. This equates to 43.6 million people without enough income to meet their essential daily expenses.
The poverty threshold varies by family size, since your expenses will obviously increase as your family grows. In 2009, the USCB indicated that poverty threshold level was defined as less than $21,954 in annual income for a family of four or less than $10,956 in annual income for an individual. In comparison, the median household income in the United States for the same time period was $50,221.
The number of Americans living in extreme poverty, defined as those with an income less than 50% of the poverty threshold for their family size, was 6.3% in 2009.
Poverty Rates by State
The Small Area Income and Poverty Estimates page of the USCB website has an interactive map showing poverty rates by state. State poverty numbers, as well as more detailed income information, can also be found in the State Quick Facts section of the U.S. Census Bureau website.
The percentage of Americans living in poverty by state for 2009 was:
- Mississippi - 21.8%
- Arkansas - 18.5%
- Kentucky - 18.4%
- New Mexico - 18.2%
- West Virginia - 17.8%
- Louisiana - 17.6%
- District of Columbia - 17.6%
- Alabama - 17.5%
- Tennessee - 17.2%
- Texas - 17.1%
- South Carolina - 17.1%
- Georgia - 16.6%
- Arizona - 16.5%
- North Carolina - 16.2%
- Oklahoma - 16.1%
- Michigan - 16.1%
- Ohio - 15.1%
- Montana - 15%
- Florida - 15%
- Missouri - 14.6%
- Idaho - 14.4%
- Indiana - 14.4%
- Oregon - 14.3%
- South Dakota -14.2%
- New York - 14.2%
- California-14.2%
- Illinois - 13.3%
- Kansas - 13.2%
- Colorado - 12.6%
- Maine - 12.6%
- Pennsylvania - 12.5%
- Nevada - 12.4%
- Wisconsin - 12.4%
- Washington - 12.3%
- Nebraska - 12.2%
- Rhode Island - 12%
- Iowa - 11.8%
- North Dakota - 11.7%
- Utah - 11.7%
- Vermont - 11.5%
- Delaware - 11.2%
- Minnesota - 10.9%
- Virginia - 10.6%
- Hawaii - 10.4%
- Massachusetts - 10.3%
- Wyoming - 10.2%
- New Jersey - 9.4%
- Connecticut - 9.3%
- Maryland - 9.2%
- Alaska - 9.1%
- New Hampshire - 8.6%
In 2009, median income by state was:
- Maryland - $69,193
- New Jersey - $68,444
- Connecticut - $66,906
- Alaska - $66,712
- Massachusetts - $64,057
- Hawaii - $63,741
- New Hampshire - $60,734
- Virginia - $59,372
- California - $58,925
- District of Columbia - $58,906
- Delaware - $56,985
- Washington - $56,479
- Colorado - $55,735
- Minnesota - $55,621
- Utah - $55,183
- New York - $54,554
- Wyoming - $54,400
- Illinois - $53,974
- Nevada - $53,310
- Rhode Island - $53,243
- Vermont - $51,219
- Wisconsin - $49,994
- Pennsylvania - $49,501
- Arizona - $48,711
- Oregon - $48,325
- Texas - $48,286
- Iowa - $48,065
- North Dakota - $47,898
- Kansas - $47,709
- Nebraska - $47,470
- Georgia - $47,469
- Maine - $45,708
- Ohio - $45,467
- Indiana - $45,427
- Michigan - $45,254
- Missouri - $45,149
- South Dakota - $45,048
- Florida - $44,755
- Idaho - $44,644
- North Carolina - $43,754
- New Mexico - $42,830
- South Carolina - $42,580
- Louisiana - $42,460
- Montana - $42,222
- Oklahoma - $41,716
- Tennessee - $41,715
- Alabama - $40,547
- Kentucky - $40,061
- Arkansas - $37,888
- West Virginia - $37,423
- Mississippi - $36,764
As you can see, the median income state list doesn't correspond exactly to the list of states with the highest percentage of people living in poverty. The median income is simply the middle point at which half of all state residents earn more and half earn less. It does not take into account family size, which is a key factor in determining if a person is considered to be living in poverty.
Considering the Cost of Living
At first glance, poverty statistics seem relatively straightforward. However, it's important to remember that these numbers do not take into account the differences in the cost of living between various states. Knowing how far you can stretch your salary in a particular state is a crucial element in determining if a person has enough money to meet their expenses. You can learn more about state differences in the cost of living by using the calculator on the CNN Money website.
