The U.S. Census Bureau states that the household income has declined 2.2 percent as the poverty rate increased for the first time in eight years, from 11.3 percent in 2000 to 11.7 percent in 2001.
“They go hand in hand,” said Robert Bernstein from the U.S. Census Bureau. “It coincided with [the economy’s] recession.”
In Wisconsin, both family and non-family household income declined between 2000 and 2001 as confirmed by the U.S. Census Bureau.
“Household income is the combined income of everyone under the same roof,” said Bernstein. “It can come from a lot of sources like earnings, dividend from stocks and interest from savings accounts.”
The average median-family-household income decreased by 1.7 percent, from $53,155 to $52,275, and the non-family income dropped by 1.5 percent from $26,012 to $25,631.
However, in the Midwest, the median household income declined by 3.7 percent to $43,834, while the West dropped by 2.3 percent to $45,087, the South by 1.4 percent to $38,904 and the Northeast remained the same at $45,716.
Wisconsin is included among 12 states in which the real median-household income declined. The other states include Illinois, Indiana, Iowa, Michigan, Alabama, Florida, Mississippi, Tennessee, Maine, Vermont and Washington. Only three states have seen incomes rise – Arizona, Massachusetts and Pennsylvania.
Wisconsin’s average income is $46,734, higher than the median of the U.S. at $42,873.
Because the median household income decreased, there are about 1.3 million more individuals that live in poverty in 2001 than in 2000, which means 32.9 million people live in poverty today. This is the total population of Wisconsin, Minnesota, Illinois, North Dakota, South Dakota, Iowa and Indiana combined.
“Poverty rate is based on a series of thresholds that are placed on a sliding scale depending on the number of people in a family and the number of children in the family. [Poverty] for a family of four is about $14,000 and $9,000 for one person,” said Bernstein.
Also, the number of poor families increased since 2000, from 6.4 million to 6.8 million families in 2001. This is 9.2 percent of all the families in the United States. Children, however, remain the highest poverty rate of all age groups, with 16.3 percent of children nationwide living in poverty.
The South and metropolitan areas have the greatest increase in poverty rates. The South has the highest poverty rate from all regions of the United States with 13.5 percent. Where central cities across the United States have 16.5 percent, suburbs have 8.2 percent and non-metropolitan areas have a 14.2 percent poverty rate.
Wisconsin’s poverty rate is 8.6 percent, which is lower than the national average of 11.6 percent.
At the University of Wisconsin, the Poverty Action Network organization addresses poverty issues. Members volunteer their time at shelters in the community and write letters.
“We try to alleviate problems locally and nationally, ” said Elizabeth Scully, an active member of Poverty Action Network at the university.
Bernstein said he is impressed with Wisconsin, because it “is doing pretty well compared to the rest of the country.”
