Near poverty


Near poverty in economics refers to the state of living on an income marginally above the poverty line, defined by the U.S. Census Bureau at an income "between 100 percent and 125 percent of the poverty line". The classification was first studied by the U.S. Census in a 2014 report that showed the number of people living just above the poverty line had decreased since the 1960s, believed to be due to an increase in the number of people who have fallen beneath the poverty line. During the past decades the median household expenditures on income-related necessities show a gradual increase from 25 to 30 percent, while median wage remains the same. In order to earn the same amount of money as before, Americans need to work harder at more jobs and spend more on so called income-related necessities, such as commuting costs, childcare costs, costs for caring for the dependents, etc. Therefore, most Americans now have higher expenses than income. More than 75 percent of Americans are currently struggling to make ends meet, and approximately half of this sample group stated “material hardship”, which means that they are hardly able to afford a place or food to survive. Approximately half of renters are paying more than one third of income for renting. A Russian economist Constantin Gurdgiev says: "Quite frankly, it is idiotic to assume that gross median income matters to anyone. What matters is after-tax income net of the cost of necessities required to earn that income."

Mollie Orshansky

“What is perhaps more striking than the steady reduction in the number of the very poor is the failure to reduce the number just above the minimum poverty line: There are today, just as there were in 1959, about 15-3/4 mil- lion persons in households with income that is above the poverty level but still below what might be considered a reasonable minimum. It will be noticed that from 1959 to 1960, as the count of the poor rose, the number just above the poverty line did drop, only to climb again the following year as the poverty rolls started down. This reciprocal trend suggests that there may be a siz- able group in the population living always on the margin—wavering between dire poverty and a level only slightly higher but never really free from the threat of priva- tion. ”
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UN Sustainable Development Goals

More than 10% of the world population i.e. more than 700 million people still live in extreme poverty and lack basic existential needs. People who are living under 1.9$ per day are considered to live in extreme poverty. Most people living below poverty line live in Southern Asia and sub-Saharan Africa. Also, high poverty rates are usually found in fragile, small and countries embroiled with conflict. 122 women aged 25-34 are living in poverty compared to 100 men of the same age group. And more than 160 million children are at risk of continuing trend of poverty by 2030.
Number 1 goal of UN Sustainable development goals agenda is to end poverty worldwide till 2030. Fighting poverty means fighting inequality preventing from unemployment, social exclusion, and high vulnerability of certain populations to disasters, diseases. This all is detrimental to economic growth and sustainability. Otherwise, widening social inequality has consequences of increasing political tensions, social conflicts and may lead to instability and conflicts. Also, poverty rate in rural areas worldwide are higher than in urban areas.
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[ Child care ] and children in low-income families

Another essential and overwhelming part of expenditures is child care. Almost half of the US children are currently in near poverty situation. It confirms that in 2014 there was 44 per cent of children living in low- income households and 21 per cent lived in poor families. While higher parental education decreases the likelihood for a child to live in near poverty conditions, almost half of children in poverty or near poverty have a parent with at least some college education. Children who lived with married parents are not likely to be poor or near poor, however, almost half of children in low-income families and one-third of children in poor families live with married parents.

Vulnerable population (Pregnant women and children)

Poverty and near poverty play a significant role in determining the wellbeing of a pregnant woman and infants who are highly dependent on mother’s care. Pregnancy and childhood are crucial times that are particular with vulnerability to low income. Near-poverty that is associated with lack of financial support and childcare may have a lasting consequence to the health of both women and infants.
Economic hardships may play a nutritional deprivation during pregnancy and childhood that are crucial markers to both physiologic and psychosocial determinants of potential health risks.
According to MIHA and PRAMS data surveys of postpartum women in California in years 2002-2006 it has shown that in both surveys over 53% of postpartum women had low incomes during pregnancy and among them approximately 30% were poor and 20% near poor. Also, with regard to ethnicity of lower-income women it was more likely to be black, non-Hispanic or white Hispanic, to lack education beyond high school, to be teens, to be unmarried, and to lack private prenatal insurance.  
----By February 2016, the percentage of children living in low-income families surprisingly exceeds that of adults. The number of children living in near poverty situation can be divided by several factors:
By children’s age
By race/ethnicity
Gorey and Vena have found in their study that Racial group disparities are connected with problem of racial group cancer differentials. The New York State Cancer Registry provided data that has shown that there is a correlation between black people in near poverty line living in impoverished areas, which are directly associated with cancer incidence.  
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Danger of Faling into Poverty, Chances of Joining the Middle Class

The Israeli poverty lines are the highest among western countries. In Israel more than one-fourth of Israeli households live in poverty or near poverty. The study shows that the families living in near poverty lines have not much better offs than families living in poverty lines. The study also recommends more accessible services such as financing of health and education to households living in poverty.
In 2016, among Israel households, the poverty rate among Israeli households was 18.5% and the rate of near poverty 8.1%. In total 26.6% of Israeli households were poor or nearly poor.
In 2016, almost half, 49.2% of Arab households were below poverty line on the contrary to the Jewish households 13.2%. Regarding near poverty the gap between these ethnic groups were smaller: 13.5% for Arab households and 7.2% for Jewish households.
Among Jewish households, the group with the highest poverty rate was among Ethiopian immigrants – 22.8%. Meanwhile, concerning near poverty, the highest rate was found from former Soviet Union immigrants: 12.1%.
The study came with a result, that Israeli household’s expenditures of four services living in near poverty lines have similar expenditures to the households living in poverty than households in the lower middle class.
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Near Poverty in U.S.

In U.S. the U.S poverty rate in 2016 was between 12.7 and 14.0 percent. However, the poverty is not only about dollar figure, it is about the quality of life for Americans to have necessary access to social and security services such as healthcare etc. Nearly 50% of low-income Americans that are considered to be the poorest are barely surviving with their paychecks. Around 60 -70% of American workers can’t afford health care, house or auto repairs.
On the contrary, the richest 10% and the middle class received more in safety net government transfers such as Medicare, Medicaid, tax credits, food stamps/SNAP, Veteran’s benefits, etc. than the bottom 50% of Americans.
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Facts and numbers