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The Kennedy-era poverty formula hides the economic pressures now crushing working Americans. Worse, benefits losses are wiping out wage gains.
In a recent analysis gone viral, financial blogger Michael W. Green traced how modern American families can earn anywhere from $40,000 to $100,000 and still fall further behind. The argument is devastatingly simple: the mathematical parameters defining “poverty” are built upon a benchmark drawn in 1963, multiplied by three, and only lightly adjusted for inflation. Everything else — childcare, healthcare, housing, transportation, and the structural design of the welfare state — has transformed beyond recognition. The result is a system in which the official poverty line tells us less about deprivation than it does about starvation. And once you trace the math, the inescapable metaphor emerges: America’s working households require escape velocity to break free from the gravitational well of modern costs of living.
In physics, escape velocity is the minimum energy needed to break free from a body’s gravitational pull. Below that threshold, every burst of energy merely bends the trajectory and drops the object back into orbit. The same dynamic now governs mobility in the United States.
Using conservative assumptions, a bare-bones “participation budget,” the minimal cost necessary for a household to work, raise children, and avoid freefall, is roughly between $136,000 to $150,000. That figure doesn’t represent luxurious living; it’s the updated application of Mollie Orshansky’s original method, which assumed food was one-third of a household’s budget. Today, food is closer to 5 to 7 percent, and the real multipliers reside in the unavoidable costs of existing in a post-industrial service economy. The system still uses the original 1963 architecture, so the “poverty line” is measured as if housing, childcare, and healthcare still operated like they did during the Kennedy administration.
It's honestly pretty gross for Americans to claim they need $150k to avoid being in poverty. We're the fattest richest people in history and most of us have no idea what it's really like to be in poverty.
I've been very poor by American standards at different points in my life and it's nothing compared to what people in other parts of the world have to deal with.
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111 sats \ 0 replies \ @TNStacker 5h
100%. I just got back from India and they have poor people. I've also been to Myanmar and Cambodia.
Poor in America is fat with color TV/digital streaming and water you can drink from the faucet. We lack perspective and are completely spoilt.
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fair!
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I do think some of the methodological points are interesting, it's just the presentation that's wildly tone deaf.
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