Monday, September 7, 2015
FEDERAL POVERTY LEVEL DOESN’T MEASURE THE COST OF REAL LIFE
In most large U.S. cities, the cost of maintaining a modest standard of living, where families don't struggle to put food on the table or pay the rent, requires income that's far beyond the federal poverty line (FPL), according to a new study from the liberal Economic Policy Institute. Take the FPL for a family of four, which was $23,850 last year. (Even the U.S. median household income of $53,046 would fall short in every location, EPI found.) The poverty level is about half of what a family of four would need to get by in the country's least expensive metropolitan area -- Morristown, Tennessee—where a two-parent, two-child family would require gross income of $49,114 simply to cover rent, taxes, food, transportation, child care and other basics. Needless to say, the FPL doesn’t come close to what New Yorkers would need--where a family of four needs $98,722 to afford their basic needs. The median household income in the Big Apple stands at only $58,003.
Source: CBS News, 8/26/15, Poverty Level Outdated