Revised measure says 3 million more Americans in poverty; rural states no longer poorest

We noted yesterday that the number of Americans living in poverty, especially those in rural areas, continues to rise. A new way to measure poverty says 3 million more people than the official count are poor, with rural states like Mississippi, Louisiana and New Mexico being overtaken as the poorest regions by California, the District of Columbia, Nevada and Florida, The Associated Press reports. The revised estimate, which takes into consideration out-of-pocket medical costs and work-related expenses, found the number of poor Americans in 2012 was 49.7 million, not 46.5 million.

The new measure, which the Obama administration put into place two years ago, "is considered more reliable by social scientists because it factors in living expenses as well as the effects of government aid, such as food stamps and tax credits," the AP reports. But for the new method to have any effect, Congress would have to adopt it, which seems unlikely because it would increase federal spending.

Under the new system, the number of poor 65 and older jumps from 9.1 percent to 14.8 percent, and the number aged 18-64 increases from 13.7 percent to 15 percent. While numbers drop for those under 18, from 22.3 percent to 18 percent, the overall number still increases from 15 percent to 16 percent. Food stamps also played a big role in overall numbers, lifting 5 million above the poverty line. Without food stamps, the percent of poor would increase to 17.6 percent. (AP graphic)

Poverty rates increased among Hispanics and Asians, with the rate for Hispanics increasing from 25.8 percent to 27.8 percent and Asians from 11.8 percent to 16.7 percent, the AP reports. Rates also rose for non-Hispanic whites—from 9.8 percent to 19.7 percent—but went down for African-Americans, from 27.3 percent to 25.8 percent. (Read more)