Poverty went up in 2020, but stimulus checks and beefed up unemployment benefits were a lifeline for millions of Americans
Business Insider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
. Because of all this, the official poverty rate went up 1.0 percentage point, as measured by the Census Bureau. However, another measure, which includes income like stimulus checks and government programs and is called theSupplemental Poverty Measure
(SPM), shows these benefits helped reduce the number of Americans in poverty in 2020 by 2.6 percentage points.The stimulus payments, expansions of government programs, and other programs used by Americans helped lift millions of people out of poverty, as seen in the following chart:
Social Security had a big impact on lifting Americans out of poverty. Per Census data, Social Security lifted 26.5 million people out of poverty in 2020. Stimulus checks lifted 11.7 million people out of poverty. Unemployment insurance didn't have as big an effect as the first two stimulus payments, but the expanded unemployment benefits did lift 5.5 million people out of poverty. headtopics.com
Unlike the Supplemental Poverty Measure, the official poverty rate did see an uptick last year.There were 37.2 million people in poverty in 2020 — 3.3 million more than in 2019. The official poverty rate increased for the first time in five consecutive years, according to the Census Bureau's latest
reportand as highlighted in the following chart. The rate increased from a low of 10.5% in 2019 to 11.4% in 2020. Bruce Meyer, a professor at the University of Chicago Harris School of Public Policy and whose research area includes poverty, called this annual increase by one percentage point while the SPM saw a decrease"striking" in an email to Insider.
The official rate uses pre-tax cash income and doesn't include things like stimulus checks, tax credits, or benefits like SNAP like the SPM does. So it doesn't take into account all the government expansions and stimulus given to Americans during the pandemic.
"The SPM is a post-tax and transfer poverty measure, so it captures expansion of unemployment insurance (like the official poverty measure), but also includes stimulus payments and expansions to SNAP that are not included in the official poverty definition," the Census Bureau headtopics.com
.The SPM shows how expanded programs and aid during the pandemic helped lift Americans out of povertyThe Supplemental Poverty Measure dropped from 11.8% in 2019 to 9.1% in2020. The Census Bureau notes that this is the lowest rate since 2009, the first year that the government agency published these rates.
Additionally, Zach Parolin, senior fellow at Columbia University's Center on Poverty and Social Policy and an assistant professor at Bocconi University told Insider in an email that research from the Center on Poverty and Social Policy shows that"this is the lowest rate of SPM poverty since at least 1967, the first year for which we have reliable
data.""The SPM did a better job of capturing the reduction in poverty due to the unprecedented government rescue effort, though the survey it relies on sharply understates the effect of unemployment insurance, so the true reduction in poverty was probably greater than 2.6 percent," Meyer told Insider in an email.
Parolin called today's report of the Supplemental Poverty Measure"remarkable.""In a year of high unemployment, a global health crisis, and large uncertainty, the US welfare state met the challenge and led to a record low rate of SPM poverty," Parolin told Insider in an email. headtopics.com
Parolin told Insider in an email that a permanent expansion of the Child Tax Credit, which is only temporarily expanded for a year, would be one way to help keep poverty rates low in the future. Research from Columbia's Center on Poverty and Social Policy shows that the child tax credit helped lift
3 million childrenout of poverty after just the first advance monthly payment. "Today's numbers demonstrate the incredible capability of the US welfare state when it is properly funded and applied," Parolin wrote."In a turbulent year, the CARES Act and other income transfers kept food hardship in check and led to a record low SPM poverty rate. That is a clear success."
Sign up for notifications from Insider! Stay up to date with what you want to know.Subscribe to push notificationsAn icon in the shape of a lightning bolt.TrendingNOW WATCH: WATCH: The legendary economist who predicted the housing crisis says the US will win the trade warRead more: Business Insider »
Video: March for Life brings thousands of abortion opponents to DC - CNN Video
CNN's Joe Johns reports from the March for Life as thousands of abortion opponents are taking part in the annual event in Washington, DC.
Big xucking deal
Poverty rose to 11.4% in 2020 amid pandemicSome 11.4% of Americans were in poverty last year, as the coronavirus pandemic raged across the nation, according to Census Bureau data released Tuesday. That compares to 10.5% in 2019, the lowest since records started in 1959. Thanks Joe. This doesn't matter because more people became billionaires and billionaires got more billions. That’s all that matters. Lockdowns worked!
Trump repeatedly endorses elections officials who reject 2020 election resultsRachel Maddow reports on Mark Finchem, the latest state Republican candidate for secretary of state to earn Donald Trump's endorsement by running on a platform of rejecting Trump's legitimate election loss in their state. Why isn't Trump in prison yet ?
Global Box Office Projected To Hit $20.2B In 2021, 68% Up On 2020: AnalystsThe worldwide box office for 2021 is projected to come in at $20.2B, 52% down on the record-breaking 2019 and 68% above the pandemic-hobbled 2020, says a new report from Gower Street Analytics. The… Why is Dune always included with No Time To Die, Venom: Let There Be Carnage, Eternals, Spider-Man: No Way Home and The Matrix Resurrections while it might have a similar sized budget its going to take less than half the BO of those films as Blade Runner 2049 did
‘Overall crime decreased in 2020’ in the U.S., report findsAs Republicans revive familiar warnings about out-of-control crime in pursuit of regaining power, a new report concludes: “Contrary to the media narrative, overall crime decreased in 2020 compared to 2019.” Don't count this weekend in Chicago please. When you have democrat DAs who refuse to prosecute many crimes, this report cannot be counted on. This is a complete lie.
How 2020 Dominion machine controversy has shaped California's recall electionSome election security experts have already called for an audit of California's gubernatorial recall election.
Uzo Aduba Reveals She Wed Filmmaker Robert Sweeting in 2020'My heart, my love — I’m so happy my life started last year with you,' Adubo shared on Sunday on Instagram. Who cares Her talent is phenomenal!! She pulled a Kerry Washington