Based on the latest supplemental poverty measure, the U.S. Census Bureau reports California holds the highest poverty rate at 23.5 percent. According to Southern California Public Radio, the biggest factor seems to be the high cost of living. Real estate value in California is sky-high and it’s relatively difficult to qualify for food stamps and other welfare benefits, according to the U.S. Census Bureau reports.
“I was surprised,” San Diego State economics professor Shoshana Grossbard said. “I understood they changed the method to calculate the poverty rate. Previously, it was only 16 percent and it was not at the top in the nation.”
With the new measurement in place, a broader spectrum of factors are now being taken into consideration. This figure includes not only the costs of food, but medical costs, account tax rates, child care and other expenses.
According to The Sacramento Bee, the new SPM put about 3 million more people at the or below the poverty line in California, but affected other states positively by lowering their poverty rate.
According to the US Census Bureau in 2011, the national poverty rate was 15.8 percent, or approximately 46.2 million people. California, which holds about 12 percent of the nation’s population, not only tops the list nationwide but also leaves a huge gap itself and other states with high levels of poverty.
Not far behind on the list is the District of Columbia, which holds a 23.2 percent poverty rate. However, with such a small population, it’s barely a dent in the national average. Following D.C. is Florida with 19.5 percent.
California is home to more than 38 million people—a fourth of the population at the poverty line equals almost 9 million people impoverished. California’s economy and low wages continue to cycle and house residents with inadequate funds to support the high cost of living. In California, sustaining a lifestyle above the poverty line is becoming exceptionally more difficult than in any other state.
Grossbard says less intervention from the state and lower taxes could be possible solutions to improve the current poverty rate.
