Nearly 50% of Americans have fallen into poverty

A RECORD number of Americans — nearly one in two — have fallen into poverty or are scraping by on earnings that classify them as low income.

The latest census data depict a middle class that is shrinking as unemployment stays high. The new numbers follow years of stagnating wages for the middle class that have hurt millions of workers and families.

“Safety net programmes such as food stamps and tax credits kept poverty from rising even higher in 2010, but for many low-income families with work-related and medical expenses, they are considered too rich to qualify,” said Sheldon Danziger, a University of Michigan professor who specialises in poverty.

“The reality is that prospects for the poor and the near poor are dismal,” he said. “If Congress and the states make further cuts, we can expect the number of poor and low-income families to rise for the next several years.”

In a Conference of Mayors survey, 29 cities say more than one-in-four people needing emergency food assistance did not receive it.

Many middle-class Americans are falling below the low-income threshold of about $45,000 (€34,500) for a family of four, with housing and childcare costs consuming up to half of a family’s income.

About 97.3 million Americans fall into a low-income category, commonly defined as those earning between 100% and 199% of the poverty level, based on a new supplemental measure by the Census Bureau.

Together with the 49.1 million who fall below the poverty line and are counted as poor, they number 146.4 million, or 48% of the US population, up by four million from 2009.

Pay cheques for low-income families are also shrinking. The inflation-adjusted average earnings for the bottom 20% of families have fallen from $16,788 in 1979 to just under $15,000, and earnings for the next 20% have remained flat at $37,000.

In contrast, higher-income brackets have had significant wage growth since 1979, with earnings for the top 5% of families climbing 64% to more than $313,000.