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Poverty, Cash and In-kind Transfer Programs

What is poverty?
How does the United States define who is poor?
What is the current poverty rate?
What are cash transfer programs and in-kind transfers?
What role has welfare played in poverty reform?

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What is poverty?

Poverty is a state of being. Most people think about the extreme lack of money when poverty is mentioned. Poverty is a form of scarcity, thus poverty is also the lack of shelter, food, clothing, and medical care (Poverty definition, 2013). There is no one cause or cure when it comes to the resolution of poverty.

How does the United States define who is poor?

The US uses the Census Bureau to conduct its assessment and measurement of poverty. This is done using sources of income and family size. The income used is typical salaries or hourly wages, unemployment, social security, and Welfare incomes; this does not include noncash subsidies such as food stamps.

The poverty threshold is the size of the family and the ages of the family size. This excludes situation where there are people living together that are non-relatives or roommates. So if you have to college friend or a best mate that are sharing a living dwelling (such as an apartment or house or cardboard box under the interstate off/on ramp), each person would be classified as their own family even though they live in the same dwelling.
An example of this break down would be as followed:

Household Size Federal Poverty Threshold
1 person $ 9,310
2 people 12,490
3 people 15,670
4 people ...

Solution Summary

The expert examine poverty, cash and in-kind transfer programs.