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.

   Factors Influencing Poverty Trends

  1. Economy: The condition of the economy has a direct impact on poverty levels. Economic growth, job creation and financial stability contribute to poverty reduction, while recessions and financial crises lead to an increase in poverty.

  2. Social Policies: Social support programs are crucial to fighting poverty. Changes in government policies, such as cuts in social programs or social security reforms, can affect poverty levels.

  3. Education: Access to education is one of the most important factors affecting long-term economic opportunities. Higher levels of education lead to better job opportunities and higher incomes, which reduces the risk of poverty.

  4. Cost of Living: Increases in the cost of living, especially in housing and health care, can lead to increased poverty. Regional differences in the cost of living also matter, with higher poverty rates in regions with high costs of living.

   5. Technology and Automation: Technological advances and the automation of work can lead to job losses in some sectors, affecting poverty levels. At the same time, the development of new technologies can create new job opportunities.

   Regional Differences in Poverty Trends

  Differences in poverty rates between regions and states are the result of many factors, such as the local economy, state policies and demographics.

   - South: States in the southern U.S., such as Mississippi, Louisiana and Alabama, have traditionally faced higher poverty rates. Historical factors such as slavery and racial segregation, as well as economic and educational constraints, contribute to the high poverty rates in this region.

   - Northeast: The Northeast region, which includes states such as New York, New Jersey and Massachusetts, has lower poverty rates due to a developed economy, high levels of education and strong social support programs.

   - Midwest: The Midwest region, which includes states such as Ohio, Michigan and Illinois, has varying poverty rates. The region's industrial cities are struggling to cope with deindustrialization, resulting in higher poverty rates in some areas.

   - West: The Western region, including California, Nevada and Arizona, also has varying poverty rates. The high cost of living, especially in cities such as Los Angeles and San Francisco, contributes to higher poverty levels, despite the region's strong economy.

   Long-Term Effects of Poverty Trends

  Poverty trends have far-reaching effects on society and the economy:

   1. Physical and Mental Health: People living in poverty have poorer health, higher rates of chronic disease and shorter life expectancy. Health problems can result from poor diet, lack of access to health care, financial stress and unsafe living conditions.

   2. Education: Children from low-income families are less likely to finish school and pursue higher education. Lack of access to education leads to limited job opportunities and lower income in the future.

   3. Homelessness: Lack of stable income increases the risk of homelessness. By 2023, approximately 580,000 people in the U.S. are experiencing homelessness.

   4. Crime: High levels of poverty are often correlated with higher rates of crime, including violent crime. Lack of economic resources and limited opportunities lead some people to criminal activities as a means of survival.

   5. Social Mobility: Poverty limits opportunities for social advancement, creating cycles of multi-generational poverty that are difficult to break without significant social and policy interventions.

   Summary

  Trends in poverty in the U.S. over the years show that it is a dynamic and complex problem influenced by a variety of economic, social and political factors. From the Great Depression through the post-war economic boom, the stagflation of the 1970s, the technology boom of the 1990s, to the Great Recession and the contemporary challenges of the COVID-19 pandemic, poverty levels have undergone significant changes.

  Understanding these trends is key to developing effective policies and support programs to reduce poverty. As the U.S. faces new challenges such as climate change, job automation and global competition, fighting poverty remains one of the most important social and political goals. Improving the quality of life of the poorest citizens is not only a matter of social justice, but also a prerequisite for the sustainable development of the entire country.