The poverty rate increased for the first time in the United States since 2010, climbing from 7.8% to 12.4% between 2021 and 2022. (Photo: 123RF)
Washington — Inflation caused real incomes to fall by 2.3% in the United States in 2022, despite a surge in wages, the Census Bureau said Tuesday, and poverty jumped as wages expired. government aid during the pandemic.
“Historically high inflation has led to a decline in real median household income,” detailed Liana Fox, a Census bureau official, during an online press conference. This stood at 47,960 American dollars ($US).
The official poverty rate remained stable compared to last year, at 11.5%, or 37.9 million people living on less than US$14,880 per year, or US$29,950 for a family of 4 people.
But another measurement shows a very different reality.
This, also published Tuesday by the Census Bureau, adjusts the income below which a person is considered poor, taking into account in particular government aid, the cost of childcare and medical expenses. .
A family of four renting their home must then have annual income of at least US$34,518 to escape poverty.
According to this measure, the poverty rate increased for the first time since 2010, climbing from 7.8% to 12.4% between 2021 and 2022. That of children even more than doubled, climbing to 12.4%, when In 2021 it was 5.2%, its historic low.
This difference “reflects the expiration of tax credits and stimulus measures linked to the pandemic,” detailed Liana Fox.
She thus underlined that “6.4 million people had been lifted out of poverty thanks to tax credits. Among them, 3.5 million were children.
US President Joe Biden denounced the “disastrous consequences of congressional Republicans’ refusal to extend the tax credit for (families with) children, while proposing costly tax cuts for big businesses”, in a communicated.
For the Democrat, who is seeking a second term in the White House, “the increase in child poverty reported today is not a coincidence: it is the result of a deliberate political choice that Republicans in Congress made “.
“No child should grow up in poverty, and I will continue to fight to restore the child tax credit to give tens of millions of families the tax relief and financial breathing room they deserve” , he assured.