Question

Despite continued growh in average income since the early 1970s the poverty rate has not declined below the level reached in 1973

Answer 1

Present poverty level is close to 12 % in USA. It is estimated that there are over 40 million people in USA who are living under the poverty line.

Average income has increased continuously since early 1970s but poverty rate has not declined below the level reached in 1973.

Following are reasons:

• Increase in GDP of USA led to the inequality in society.
• GDP rise has been accompanied by the rise in population of country, hence poverty continued to thrive.
• US economy has suffered major ecnomic shocks such oil crisis,and financial crisis of 2008. These shocks had increased poverty rate substantially. Hence, it took efforts to reduce poverty to previous level.