Text 8. Poverty and Inequality

Americans are proud of their economic system, believing it provides opportunities for all citizens to have good lives. Their faith is clouded, however, by the fact that poverty persists in many parts of the country. Government anti-poverty efforts have made some progress but have not eradicated the problem. Similarly, periods of strong economic growth, which bring more jobs and higher wages, have helped reduce poverty but have not eliminated it entirely.

The federal government defines a minimum amount of income necessary for basic maintenance of a family of four. This amount may fluctuate depending on the cost of living and the location of the family.

The percentage of people living below the poverty level dropped from 22.4 percent in 1959 to 11.4 percent in 1978. But since then, it has fluctuated in a fairly narrow range. At the turn of the century it stood at 12.7 percent.

What is more, the overall figures mask much more severe pockets of poverty. More than one-quarter of all African-Americans live in poverty; though distressingly high, that figure does represent an improvement from the 1970s, when about one third of blacks were officially classified as poor, and it was the lowest poverty rate for this group since 1959.

Some analysts have suggested that the official poverty figures overstate the real extent of poverty because they measure only cash income and exclude certain government assistance programs, health care, and public housing. Others point out, however, that these programs rarely cover all of a family's food or health care needs and that there is a shortage of public housing. Some argue that even families whose incomes are above the official poverty level sometimes go hungry. Still others point out that people at the poverty level sometimes receive cash income from casual work and in the "underground" sector of the economy, which is never recorded in official statistics.

In any event, it is clear that the American economic system does not distribute its rewards equally. Despite the generally prosperous American economy as a whole, concerns about inequality continued during the 1980s and 1990s. Increasing global competition threatened workers in many traditional manufacturing industries, and their wages stagnated. At the same time, the federal government edged away from tax policies that sought to favor lower-income families at the expense of wealthier ones, and it also cut spending on a number of domestic social programs intended to help the disadvantaged.

sss

1. Why do you think Americans are proud of their economic system?

2. Is there any minimum income set by the US government?

3. How many people in the US lived below the poverty level in 1959 and in 1978?

4. Has the situation changed so far?

5. What groups of people in the US are the most underprivileged?

6. What information on assistance and health care programs is given in the text?

7. Does the American economic system distribute its rewards equally?

8. Are there similar problems in Russia?

Дата добавления: 2014-12-27