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In US, record numbers are plunged into poverty: report
Sat Feb 24, 7:35 PM ET

The gulf between rich and poor in the United States is yawning wider than
ever, and the number of extremely impoverished is at a three-decade high,
a report out Saturday found.

Based on the latest available US census data from 2005, the McClatchy
Newspapers analysis found that almost 16 million Americans live in "deep
or severe poverty" defined as a family of four with two children earning
less than 9,903 dollars -- one half the federal poverty line figure.

For individuals the "deep poverty" threshold was an income under 5,080
dollars a year.

"The McClatchy analysis found that the number of severely poor Americans
grew by 26 percent from 2000 to 2005," the US newspaper chain reported.

"That's 56 percent faster than the overall poverty population grew in the
same period," it noted.

The surge in poverty comes alongside an unusual economic expansion.

"Worker productivity has increased dramatically since the brief recession
of 2001, but wages and job growth have lagged behind. At the same time,
the share of national income going to corporate profits has dwarfed the
amount going to wages and salaries," the study found.

"That helps explain why the median household income for working-age
families, adjusted for inflation, has fallen for five straight years.

"These and other factors have helped push 43 percent of the nation's 37
million poor people into deep poverty -- the highest rate since at least
1975. The share of poor Americans in deep poverty has climbed slowly but
steadily over the last three decades," the report said.

It quoted an American Journal of Preventive Medicine study as having found
that since 2000, the number of severely poor -- far below basic poverty
terms -- in the United States has grown "more than any other segment of
the population."

"That was the exact opposite of what we anticipated when we began," said
Dr. Steven Woolf of Virginia Commonwealth University, a study co-author.

"We're not seeing as much moderate poverty as a proportion of the
population. What we're seeing is a dramatic growth of severe poverty."

US social programs are minimal compared to those of western Europe and
Canada. The United States has a population of 301 million, but more than
45 million US citizens have no health insurance.
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