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Poverty up, pay down as economy sputters
Compiled from Times wires WASHINGTON -- The number of Americans living in poverty increased for the first time in eight years in 2001, and the nation's median household income declined, the U.S. Census Bureau reported Tuesday. Both bits of bad news stemmed from the recent recession. The last time both measures sank simultaneously was 1993, when the economy was also recovering from recession. Nationally, the number of poor people jumped from 31.6-million in 2000, or 11.3 percent of the U.S. population, to 32.9-million in 2001, or 11.7 percent. A family of four was considered to live in poverty in 2001 under federal guidelines if its annual income was less than $18,104. Comparable figures were $14,128 for a family of three, $11,569 for a family of two and $9,039 for unrelated individuals. Children under 18, who make up only 26 percent of the population, accounted for 36 percent of the nation's poor, said Daniel Weinberg of the Census Bureau. The median household income -- half of all U.S. households earn more and half less -- dropped $900, or 2.2 percent, to $42,228 in 2001. It was the second straight year that the earnings measure has declined. Democrats seized on the dreary numbers to criticize Republican policies and push for an extension of unemployment benefits. Senate Banking Committee Chairman Paul Sarbanes, D-Md., said the Bush administration has focused too much attention on tax cuts and not enough on the needs of the most vulnerable citizens. "The administration needs to show that it has some understanding that there's an economic problem out there and that they're prepared to do something about it," he said. President Bush said he remains upbeat about the economy. "When you combine the productivity of the American people with low interest rates and low inflation, those are the ingredients for growth," he said. "But I understand we've got a lot of work to do." Joel Naroff, an economist and president of Naroff Economic Advisers of Holland, Pa., said the declines are cyclical and were to be expected after a decade of unprecedented growth. He said the economy will continue to struggle and incomes will be depressed until managers feel more comfortable about hiring. All regions of the country experienced declining income except the Northeast, where income was unchanged. The findings are estimates based on a Census Bureau survey of 78,000 households conducted in March. Perhaps surprisingly, last year's economic downturn hit non-Hispanic whites the hardest. Their poverty rate, while it remains the lowest among all racial groups, nevertheless rose the most, from 7.4 percent to 7.8 percent or 15.3-million people. The recession's disproportionate impact on non-Hispanic whites is "a little bit unusual historically," Weinberg said. "But because they're the largest (racial) group, you're more likely to be able to find a statistically significant change for them than for other groups." Poverty remained highest for African-Americans at 22.7 percent, up slightly from a historic low of 22.5 percent in 2000. The Hispanic poverty rate of 21.4 percent last year was an all-time low. Poverty among Asians and Pacific Islanders jumped from 9.9 percent in 2000 to 10.2 percent last year. Median income for women increased 3.5 percent to $29,215, while men saw no change in earnings at $38,275. It was the fifth straight year that women's earnings have increased, and pushed the female-to-male earnings ratio to an all-time high of 76 percent. Martha Burk, chairwoman of the National Council of Women's Organizations, a bipartisan network of more than 100 national women's groups, said the numbers were encouraging, but "the fact we still have such a huge pay gap is wrong in the richest country in the world." The Northeast was the only region where median household income was unchanged at $45,700. The Midwest median income fell the most, down 3.7 percent to $43,800. The West fell 2.3 percent to $45,100. The South fell only 1.4 percent, but retained the lowest regional median income at $38,900. For non-Hispanic whites, median household income declined 1.3 percent to $46,305 in 2001. Median income for blacks dropped 3.4 percent to $29,470, the largest decline in 19 years. Income for Asians and Pacific Islanders fell 6.4 percent to $53,635 in 2001. Hispanics' median income dipped 1.6 percent to $33,565. From 1999 to 2001, the median household income increased in Arizona, Massachusetts and Pennsylvania. It decreased in Florida, Alabama, Illinois, Indiana, Iowa, Maine, Michigan, Mississippi, Tennessee, Vermont, Washington and Wisconsin over the same period. There was no significant change in the remaining states. The poverty rate over the same three-year period increased in South Carolina and Utah, while it decreased in California, Delaware, Massachusetts and Nevada. Other states registered no significant change.
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From the Times wire desk
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