EconTalk Mark Rank on Poverty and Poorly Understood
Apr 19, 2021
Mark Rank, a sociologist and author of "Poorly Understood: What America Gets Wrong About Poverty," dives into the complexities of poverty. He shares that most Americans will experience poverty at some point, challenging common misconceptions. Rank critiques how poverty is measured and advocates for a deeper understanding beyond mere financial metrics. He emphasizes the importance of education and skill acquisition in alleviating poverty, and explores the transient nature of poverty rather than viewing it as a permanent condition.
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Defining Poverty
- Poverty has subjective and objective measures, with official U.S. measures focusing on income thresholds.
- These thresholds vary by household size, reflecting the higher costs for larger families.
Extreme Poverty
- 45% of people in poverty fall below half the official poverty line, termed "extreme poverty."
- This percentage has been rising, indicating a growing issue of severe economic hardship.
Poverty Measure Origins
- The official U.S. poverty measure originated in the 1960s "War on Poverty."
- It multiplies the cost of a minimum adequate diet by three, assuming food was one-third of a family budget.
