Fifteen percent of the U.S. population lives below the poverty line, the worst in 20 years, and income levels have dropped again.
The poverty level remains unchanged from 2011. Unemployment insurance and modest job gains have kept it from worsening. Without unemployment insurance, it would be 23% according to some economists.
The median household income has dropped to $50,054, 1.5 percent lower than 2010 for a second straight annual decline.
President Obama still insists his policies will help the middle class and he just needs more time. President Obama put forth a budget that not one Senator voted for but he still urges congress to act. It does not bolster his case that even Democrats can’t get behind his budget. Senator Reid will not allow any other budget to come to the senate floor for the fourth straight year.
It’s Congress’ fault according to Obama’s latest comments.
Governor Mitt Romney, said President Obama “is the candidate that’s pushed the middle class into poverty. We’re the party of those who want a brighter, prosperous future for themselves and for their kids. We’re not the party of the rich. We’re the party of the people who want to get rich.”
Bruce D. Meyer, an economist at the University of Chicago, said it was disappointing that poverty levels did not improve. He described it as a sign of lingering problems in the labor market, even with recent declines in the unemployment rate. “The drop in the unemployment rate has been due in significant part to workers leaving the labor force, because they are discouraged, back in school, taking care of family or other reasons,” he said.
Many economists are just happy it didn’t get worse.