Poverty Facts, 2004

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Abstract

In 2004, 36.6 million people—or 12.6 percent of the U.S. population—were poor. The “poverty gap”—the amount of additional income required to remove all Americans from poverty—was $105.6 billion. Poverty rates were highest for African Americans, Hispanics, women, and persons under 25. Without government benefits, 61 million people would be poor. Social Security and other social insurance programs remove 21 million people from poverty. Means tested programs remove 3 million people from poverty. If food and housing assistance were counted as income for poverty purposes, an additional 7.6 million people would be counted as not poor.

Poverty Facts

How Many People Are Poor?

• 36.6 million people—or 12.6 percent of the U.S. population—had family incomes below the federal poverty threshold in 2004.

How Much Money Do Families Need To Rise Out Of Poverty?

• $105.6 billion would be required to move all family incomes up to the poverty threshold.

Who Is Most Likely To Be Poor?

• Poverty rates are highest for African Americans, Hispanics, women, and persons under age 25.

How Do Government Programs Affect Poverty?

• Without government benefits, 61 million people would be poor.
• Social insurance, including Social Security and other programs available to persons regardless of income remove 21 million people from poverty.
• Means tested programs, including SSI, TANF, and other cash assistance programs remove an additional 3 million people from poverty.
• If food and housing assistance were counted as income for poverty purposes, an additional 7.6 million people would be counted as not poor.

(End of excerpt. The entire report is available in PDF format.)

The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

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