Poverty Line Calculation - The traditional poverty line calculation, based on families spending one-third of their income on groceries, may be outdated [1] - The original formula was developed by Molly Orch, observing that families spent roughly 33% of their income on groceries [1] Shift in Household Spending - Between 1963 and 2024, household spending composition has significantly changed due to exploding housing costs, healthcare expenses, and childcare costs [2] - Food at home now accounts for only 5% to 7% of household spending for most families [3] - Housing now consumes 35% to 45% of household spending [3] - Healthcare accounts for 15% to 25% of household spending [3] - Childcare can consume 20% to 40% of household spending for families with young children [3] Revised Poverty Threshold - Applying the original logic with updated spending proportions, the multiplier should be 16 instead of 3 [4] - The income inadequacy threshold for a family of four is estimated to be between $130,000 and $150,000 per year [4]
The Poverty Line In America Is Now Over $100,000?!?
From The Desk Of Anthony Pompliano·2025-12-02 18:15