An investment news website, Business Insider, has released what it says is the U.S. Census Bureau’s “secret list” ranking states by poverty level. Unfortunately, the list places Alabama No. 1 as having the highest poverty rate compared to the national average. According to Business Insider, Alabama’s poverty rate is 3% above the national average. We apparently are in worse shape than even Mississippi, which came in second on the list.
Business Insider calculated the poverty level using the Census Bureau’s “complicated public use files.” To calculate poverty rates by state, the website adjusted household incomes by government benefits and used poverty threshold levels that are adjusted for the geographic cost of living. The website, which claims its method of calculating poverty rates is superior to the method used by the federal government, also took medical, housing, energy and clothing costs into account. Business Insider wrote:
The poverty line is $10,830 per year, before taxes. That single threshold remains the same for every American, whether he lives in Mobile, Alabama or the west shore of Maui in the Census Bureaus methodology. To put it bluntly, that amount of money can go a lot further in Mobile than in Maui. Where would you rather live with that lump sum, in Mobile, where a gallon of gas goes for $2.50 or in Maui, where it goes for $3.75?
I am not sure this ranking is justified. But I do know we have severe poverty problems in our state. We must work to create good paying jobs in all parts of our state. The next governor will inherit the most serious financial problems our state has faced since the Great Depression.
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.