The poverty line is the minimum income that people need for an acceptable standard of living. People with incomes below the poverty line are considered poor. Economists study the causes of poverty in
order to find solutions to the problem.
As the general standard of living in the country rises, the poverty line does, too. Therefore, even with
today"s relatively high standard of living, about 10 percent of the people in the United States are below
the poverty line.However, if these people had stable jobs, they could have an acceptable standard of
living. Economists suggest several reasons why poor people do not have jobs.
For one thing, more than half of the poor people in the United States are not qualified to work. Over
40 percent of the poor people are children.By law, children less than 16 years old cannot work in many
industries. A large number of poor people are old. Many companies do not hire people over 65 years
old, the normal retirement age.
Some poor adults do not look for jobs for a variety of personal reasons: they are sick, they do not
have any motivation, they have family problems, or they do not believe that they can find a job.
Other poor people look for a job but cannot find one. Many poor adults never went to high school.
Therefore, when they look for jobs, they have few skills that they can offer.
At the present time, the government thinks it can reduce poverty in the country in the following ways.
First, if the national economy grows, businesses and industries hire more workers.Some of the poor who
are qualified to look for jobs may find employme
nt. T
hen they will no longer be below the poverty line.
Second, if society invests in the poor, the poor will become more productive.If the government spends
money on social programs, education, and training for poor people, the poor will have the skills to offer.
Then it is more likely that they can find jobs.
Finally, if the government distributes society"s income differently, it raises some poor people above
the poverty line. The government collects taxes from the non-poor and gives money to the poor. These
payments to the poor are called welfare. In 1975 over 18 million people in the United States received
welfare.
Some economists are looking for better solutions to the poverty problem. However, at the present
time, many people depend on welfare for a minimally acceptable standard of living.