There’s no sugar coating it – economically things are bad. With unemployment hovering at around 8.3 percent, it seems the Fed is poised to act. This is good news, since Congress seems uninterested in collaborating even on economic issues. Without any action, it seems unlikely that we will see job growth anytime soon. Worse, the jobs that are being created are not family sustaining middle income jobs, but lowering paying service sector jobs. I have seen this first hand in my region, as manufacturing and shipping related work has dwindled, hotel and restaurant positions have taken their place.
This coupled with a shocking new study that exposed the outdated formula we use to determine poverty levels, makes things look frankly bleak. An article that recently appeared in the Baltimore Sun examines the issue:
The federal government, using a formula developed nearly 50 years ago, defines poverty as pretax annual income of $23,050 for a family of four, and $11,170 for a single person.