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IPFS News Link • California

California Has the Nation's Worst Poverty Rate, New Census Data Shows

• https://www.zerohedge.com, by Ryan McMaken

According to the SPM, California's poverty rate in 2018 was 18.1 percent, followed by Louisiana with 16.5 percent, and Florida, with 16.2 percent.

The states with the lowest poverty rates per the period were Iowa at 6.7 percent, Minnesota at 7 percent, and Kansas at 7.8 percent.

The 2018 report shows a slight general decline in poverty rates throughout the nation in recent years. According to the 2015 report, for example, California's poverty rate was over twenty percent, and the state with the lowest poverty rate — Minnesota — was at eight percent.

The SPM measure contrasts with the old "official" poverty measure developed in the 1960s. The old measure tends to apply a blanket standard for poverty nationwide, but the SPM takes into account local housing costs and also " extends the official poverty measure by taking account of many of the government programs designed to assist low-income families and individuals."

Using the old measure, California ranks considerably better, because, of course, nominal incomes in California are considerably higher than in rural states and many other regions with much lower costs of living. Poverty rates in places like Mississippi, Louisiana, and New Mexico tend to be driven by low worker productivity, low-education levels, local corruption, and unfriendly business environments. But, the cost of living in these areas also tends to be relatively low, mitigating the effects of lower incomes.


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