U.S.

poverty rises despite economic recovery

(Reuters) - The number of U.S. residents living in poverty edged up to 46.5 million last year, the latest sign that an economic recovery marked by a stock market boom has not trickled down to ordinary Americans.

The figures from the Census Bureau on Tuesday highlighted the lingering scars from the 2007-2009 recession and added fresh fuel to debates over government austerity and widening income inequality. It could also renew calls to raise the minimum wage. Although the number of people in poverty went up from 46.2 million in 2011, the national poverty rate was unchanged at 15 percent, the annual report said. The poverty threshold in 2012 was an income of $23,492 for a family of four. "Today's data underscore that it is time for Congress to pivot from a focus on austerity to an agenda emphasizing jobs and shared economic growth," said Neera Tanden, president of the Center for American Progress, a liberal policy group in Washington. The recovery from the worst recession since the 1930s has been marked by a jump in stock prices to record highs, aided in part by the Federal Reserve's ultra easy monetary policy. While the Standard & Poor's 500 index gained 16 percent on a total return basis last year, including reinvested dividends, the Census Bureau report showed median household income slipped to $51,017 from of $51,100 in 2011. The economy has struggled to sustain growth rates of more than 2.5 percent since the recession ended. Although the bulk of the more than 8 million jobs lost during the downturn have been recouped, many of the jobs have been in services industries such as retail and restaurants that typically do not pay well. Belt-tightening in Washington to slash the government's budget deficit has significantly shrunk the social safety net. About 16.1 million children and 3.9 million people aged 65 years and older were living in poverty last year. "Millions are struggling to keep their heads above water, while the richest one percent is doing better than ever," said Joan Entmacher, vice president of Family Economic Security at the National Women's Law Center in Washington. MORE HAVE HEALTH INSURANCE There was some encouraging news in the report. About 48 million people did not have health insurance last year, down slightly from 48.6 million in 2011.

The number with health insurance rose to 263.2 million in 2012 from 260.2 million the prior year. The rate of uninsured people declined for a second straight year since President Barack Obama'sAffordable Care Act was passed in 2010. Much of the decline was due to an increase in enrollment in the Medicare program for Older Americans as the population aged, said Brett O'Hara, chief of the health and disability statistics branch of the Census Bureau. O'Hara also cited expansion of government-paid coverage for children. The U.S. government expects further declines in the uninsured rate. About 9 million people are expected to gain insurance through the expansion of the Medicaid program for the poor in 2014, now planned in about half of U.S. states. An additional 7 million people are expected to buy insurance in 2014 on subsidized, state-based public exchanges set up under the law. Employment-based insurance coverage fell to 54.9 percent from 55.1 percent. The rate of people insured through government programs such as Medicare and Medicaid rose to 32.6 percent from 32.2 percent. In 2012, the uninsured rate for households with annual income less than $25,000 was 24.9 percent compared with a 7.9 percent rate for those households with income of $75,000 or more, the report said. The uninsured rate for children in poverty was 12.9 percent compared with 7.7 percent for children not in poverty, the Census found.

Castillo, Chino Manuel S. B12A

Economics Prof. E Viray

U.S. poverty rises despite economic recovery

(Reporting by Lucia Mutikani, Caroline Humer and Susan Heavey; Editing by Mohammad Zargham)

Source: http://www.reuters.com/article/2013/09/17/us-usa-economy-povertyidUSBRE98G0PN20130917

Buod:
Ayun sa nabasa ko, ang pag taas ng porsyento ng kahirapan ng pamumuhay(poverty) sa Estados Unidos ay umakyat sa 46.2 milyong noong 2011. Ang kinikita ng pamilya na nakakaranas ng poverty ay $23, 492 sa taong ayon sa data na naiulat. Ang amerika ay nakaranas ng pinaka masamang pag bagsak ng ekonomiya noong 1930s ngunit nakabawi ang ekonomiya ng Estados Unidos dahil pumalo ang stock prices nito sa pinaka mataas na naitala ng Amerika, dahil sa tulong ng Federal Reserves ultra easy monetary policy. Ngunit hindi pa din ito sapat upang mabawasan ang kahirapan sa nasabing bansa. Isa sa maraming dahilan o factors sa pagbasak ng ekonomiya ng Estados Unidos ay ang kawalan ng trabaho na umaabot sa 8 milyon na agad naming pinagtuunan ng pansin ng gobyerno at nakabawi lalo na sa mga low paying jobs in service industry. Maraming pamilya ang naapektuhan ng recession, karamihan sakanila ay mga bata at matatanda edad 65 pataas, dahil dito kinakailangan ng gobyerno mag higpit sinturon. Dahil sa nasabing kahirapan si President Barack Obama ay gumawa ng batas na naglalayon na matugunan ang pangangailangang medikal ng kanyang nasasakuapan. Ayon sa census, bahagyang bumaba ang porsyente ng mga uninsured na mamamayan. Samantalang ang mga uninsured na kabataan na kasalukuyang naghihirap ay mas mataas ang bilang kumpara sa mga batang hindi kabilang sa poverty group.

Reaksyon: Tingin ko ang Amerika ay nasa stage ng recovery sa ngayon, unti unti nilang binabawi ang pag ka bagsak ng ekonomiya. Tumaas man ang kanilang ekonomiya dumadami naman ang mga taong nakakaranas ng kahirapan dahil na rin siguro sa kalidad at mamahaling bilihin sa Estados Unidos at pag dami ng kawalan ng trabaho sa Amerika dahil sa pag bagsak ng mga establisyamento. Dahil sa recession na ito maraming na aapektuhan na bata at matatandang edad 65 na gulang. Ang pagkaintindi ko sa binasa ko na ito ay may ibang pinagmulan ang pagbagsak ng ekonomiya ng America na higit pa sa ina-akalang "mortgage crisis" na sabi daw ay nakikita sa matinding pagkalugi ng Fannie Mae and Freddie Mac, at siya naman na pilit na inuugnay dito ni McCain si Obama. binili ng mga kilalang investment houses (or in other words Wall Street) ang mga "bad mortgages" at ni-repackage ito "as exotic investment securities." Para bang yung kotse na na-total at pininturahan lang ng konti at maya-maya ay binenta na magandang kotse. Ang siste pa ay certified na mataas na investment grade ng mga credit ratings agencies (gaya ng Standard and Poor's, Moody's, etc.) ang mga investment securities na 'to. Ngayon imagine mo na ilang bilyong halaga na bad mortgages ang siyang binenta sa mga bangko, pension funds at ibang institutional investors na di lang sa America kundi sa buong mundo. Siempre mula sa ilang bilyong halaga na bad mortgages, umabot sa ilang trillion dollars ito. ano naman ang pangenganyo o pang attract para bumili nitong risky na mortgage backed securities - heto na pumasok ang "credit default swap" o sabihin natin na CDS. Mina market itong CDS as an insurance para sa mga risky na mortgage backed investments. Technically, CDS works like an insurance, but is called instead as a swap to avoid Federal regulation. 'Di tulad ng insurance na regulated kasi may capital reserve requirements ito in case the insurance is called upon in the event of a default. Ang CDS (na unregulated) does not require these capital reserves to back up the risky mortgage backed investments. Ngayon sino ang mga nagbebenta nitong risky na mortgage backed investments na may CDS sila ay ang AIG, Lehman Borthers, Bear Sterns, Citi Group, Merrill Lynch, etc. These investment houses knowingly sold risky mortgages plus CDS, pero hindi naman nagtabi ng funds to cover the CDSs they written. Binulsa ang pera at tuloy pa rin ang benta kasi ang laki ng na-commission sa benta. Pero nang dumami ang mga homeowners na nag default sa kanilang mga mortgages, kinulang ang pang cover sa CDS kasi hindi nga nagtabi ng pera. Ayun, isa-isang nagbagsakan ang mga investment houses. Pati mga bangko (na damay) kaya may financial crisis. Ayon sa isa mga ininterview ng 60 Minutes, estimated na "US$ 50 to 60 Trillion" ang nawala. Sino naman ang tinutulak ng magbayad ng mga bad debts, who else eh di yung American taxpayers.