An Updated Measure of Poverty

This report highlights the need for a revised approach to measuring poverty, advocating for the Supplemental Poverty Measure to better reflect American families' needs, as discussed in An Updated Measure of Poverty.

An accurate understanding of poverty is crucial for evaluating economic performance across different demographics and assessing the impact of government policies on communities and families. Comprehensive poverty statistics play a key role in identifying the size and characteristics of the population whose fundamental needs remain unmet. This information is vital for society to effectively allocate resources aimed at addressing those needs.

An Updated Measure of Poverty advocates for a revision of the methodology employed by the Census Bureau in calculating the Supplemental Poverty Measure (SPM). The report suggests that this more inclusive SPM should take precedence over the current Official Poverty Measure as the primary statistical tool for assessing poverty. It evaluates the strengths and weaknesses of the SPM while offering recommendations for enhancing its methodology and expanding its application to better reflect the necessities of most American families, including medical care, childcare, and housing costs.

Through a detailed examination of various challenging categories such as medical care, childcare, and housing, the report provides insights into the complexities of measuring poverty accurately. By addressing data and statistical issues, An Updated Measure of Poverty aims to foster a more nuanced understanding of poverty in America, ensuring that policy decisions are informed by a comprehensive view of the economic landscape.