Title:
Trends in poverty over the years
Introduction
Poverty in the United States is a dynamic phenomenon that has changed over the years under the influence of various economic, social and political factors. Analyzing trends in poverty allows us to better understand how this problem has evolved and what the main causes are. In this article, we will show how the level and structure of poverty has evolved from the Great Depression of the 1930s to the present day, taking into account the impact of key historical events and social policies.
The Great Depression and the New Deal (1930-1940)
The Great Depression of the 1930s was one of the most dramatic periods in the history of the American economy. Falling production, mass unemployment and bank failures led to a sharp increase in poverty.
- The Scale of the Crisis: At the height of the Great Depression, about 25% of the labor force was unemployed and millions of people lived in extreme poverty.
- New Deal: The response to the crisis was the New Deal programs introduced by President Franklin D. Roosevelt. These programs created a system of social security (Social Security Act), job-creating programs (Works Progress Administration) and support for agriculture (Agricultural Adjustment Act).
The Postwar Boom and the Great Society (1945-1970)
After World War II, the U.S. experienced unprecedented economic growth, which contributed to significant poverty reduction.
- The Golden Years: The post-war period, known as the "Golden Years," was characterized by high economic growth, low unemployment and rising incomes. Many Americans rose into the middle class.
- The War Against Poverty: In the 1960s, President Lyndon B. Johnson announced the "War on Poverty" as part of the "Great Society" program. Programs such as Medicare, Medicaid, Food Stamps (now SNAP) and Head Start were introduced to combat poverty and inequality.
The 1970s and 1980s: Stagflation and Reaganomics
The 1970s and 1980s brought new challenges to poverty, including stagflation and changes in economic policy.
- Stagflation: The 1970s were characterized by simultaneous inflation and economic stagnation, leading to increased unemployment and poverty.
- Reagan Policy: President Ronald Reagan introduced a turnaround policy from previous social programs, focused on tax cuts and reduced government spending. Social support programs were cut, which had a negative impact on the poorest citizens.
1990s: Technology Boom
The 1990s brought new changes in the economy and poverty levels, linked to the technology boom and globalization.
- The Technology Boom: Economic growth driven by the technology sector brought new jobs and improved living standards for many Americans. Poverty rates fell, but income inequality grew.
- Social System Reform: In 1996, President Bill Clinton introduced welfare reform, reshaping social support programs and introducing work requirements for recipients of financial support.
Great Recession (2008-2009)
The financial crisis of 2008, known as the Great Recession, had serious effects on poverty levels in the US.
- The Surge in Poverty: The Great Recession caused massive layoffs, loss of homes and savings. The poverty rate rose to 15.1% in 2010, the highest level since the 1960s.
- Stimulus Programs: President Barack Obama's administration has introduced stimulus programs to boost the economy and support the poorest, including extending unemployment benefits and financial assistance for families.
Current Trends (2010-2023)
Over the past decade, the U.S. economy has gone through various phases, from the recovery from the Great Recession to the challenges of the COVID-19 pandemic.
- Economic Recovery: After the Great Recession, the U.S. economy slowly recovered and the poverty rate began to fall. In 2019, the poverty rate was 10.5%, the lowest since 2001.
- COVID-19 Pandemic: The 2020 pandemic caused a sharp increase in unemployment and poverty. In response, the government introduced temporary support programs such as unemployment benefits and direct stimulus payments. Despite these measures, the poverty rate rose to about 11.4% in 2021.
- Actual Situation: The poverty rate is around 11.4% in 2023. The main challenges are the rising cost of living, inflation, income inequality and the effects of pandemics.

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