For Immediate Release: Wednesday, May 30, 2012
Contact: Donna De La Cruz, [emailprotected] (202) 339-9331
Contrasting Plans in Congress Highlight Failure to Address Tragic Wealth Inequalities
(WASHINGTON)—Today, America received an alarming confirmation of our failure to address the declining position of children in our society. According to a UNICEF study of child poverty in 35 developed countries, the United States is ranked second after Romania, with a rate of 23.1%. Ranked last on the list was Iceland with a meager rate of 4.7%.
This news comes against the back drop of dueling possible futures for America. One is characterized by austerity and surging wealth inequalities and the other would focus on growth, critical investment in our economy and greater protections for those who fall through the safety net. Congress is currently faced with a choice between Republican Rep. Paul Ryan’s “Path to Prosperity,” and Democratic Sen. Tom Harkin’s “Rebuild America Act.” Both claim to address the need for strengthening the middle class; however, Paul’s plan all but eliminates the middle class by its resulting expansion of the gap between the rich and the poor, while Harkin’s bill provides it with much-needed protection.
The experience of the United Kingdom is instructive here. The UK saw one of the steepest reductions in child poverty rate only after its government made it a focus amidst a dismal rating in the years prior. The rate was linked to a need for increasing household incomes via programs focused on making public services more accessible. Harkin’s bill follows this same path by improving the economic security for families to have access to less expensive and better childcare, while incentivizing child care providers with better working conditions and wages. In contrast, Ryan’s plan slashes food stamps and repeals the Affordable Care Act with its many provisions centered on improving child care.
Another viable method of government intervention is in improving labor protections. One factor every country studied except the United States had in common is the guarantee of paid sick leave to workers. Contrary to Congressional Republican’s misleading messages, such protection strengthens family’s ability to balance work and family. Harkin’s bill addresses this void, while Ryan’s plan only weakens it.
“The conservative message of austerity runs smack into the reality of this report,” said Steve Savner, Policy Director of the Center for Community Change. “Congress can and must act to protect our children from poverty. The experience of every industrialized country in the world teaches that critical investments in education, jobs and the social safety net are the only true path to prosperity.”
“Sen. Harkin’s effort to strengthen the middle class deserves our full support, especially in light of this new study. Any supporter of the Ryan plan ought to be embarrassed by this ranking, because they fully know that this rate would only increase under the so-called ‘Path to Prosperity,’” Savner said. “This is report is serious reminder that we need to get our priorities right for our future and our children.”
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FAQs
According to a UNICEF study of child poverty in 35 developed countries, the United States is ranked second after Romania, with a rate of 23.1%. Ranked last on the list was Iceland with a meager rate of 4.7%. This news comes against the back drop of dueling possible futures for America.
Where does the US rank in child poverty? ›
When ranking child income poverty rates across 34 OECD nations from lowest to highest, the United States, with one of the highest rates of child poverty, ranks 31st .
How does child poverty in the US compare to other countries? ›
Specifically, before the improvements to the Child Tax Credit, the United States ranked 31 out of 34 countries (on a scale from lowest to highest child poverty rates). After accounting for the Child Tax Credit improvements, the U.S. now ranks 24 out of 34.
Which industrialized nation has the highest rate of childhood poverty? ›
The United States again leads all nations in having the highest rates of child poverty at 20.9 percent, while the overall average stands at 11.7 percent.
What country has the most child poverty? ›
Which places have high child poverty prevalence? Sub-Saharan Africa has both the highest rates of children living in extreme poverty at 40 percent and the largest share of the world's extreme poor children, at 71.1 percent.
Where does the US rank in poverty? ›
The United States is considered the richest country in the world, and yet 37.9 million (11.5%) of its residents live in poverty. Poverty is measured in two ways – absolute poverty and relative poverty.
What is the US national child poverty rate? ›
Currently, 16% of all children in the United States — 11.6 million kids total — are living in poverty. A family of four with annual earnings below $29,678 is considered poor. In the last decade, the percentage of U.S. children in poverty peaked at 23% in 2012, and fell to 16% 2022.
What country has the lowest child poverty rate? ›
The country with the lowest child poverty rate is Denmark, where 9.9 per cent of children are poor. About 1 in 10 children live in poverty in Finland and Slovenia. In contrast, more than one in four children live in poverty in Bulgaria, Colombia, Italy, Mexico, Romania, Spain, Türkiye and the United States of America.
Why is it difficult to compare poverty in the US with poverty in developing countries? ›
Because countries define and measure poverty differently, consistent comparisons can be difficult. National poverty lines tend to have higher purchasing power in rich countries, where standards are more generous, than in poor countries.
How does poverty in the US compare to other countries? ›
The U.S. has far and away the highest rates of poverty in the developed world. In addition, the extent of U.S. income and wealth inequality also tends to be extreme when compared to other industrialized countries.
The United States ranks near the bottom of the pack of wealthy nations on a measure of child poverty, according to a new report from UNICEF.
Which state has the worst poverty? ›
Poverty rates were highest in the states of New Mexico (18.2%), Mississippi (17.8%), Louisiana (16.9%), Arkansas (15.9%), Kentucky (15.8%), Oklahoma (15.8%), and West Virginia (15.6%) and they were lowest in the states of New Hampshire (7.42%), Maryland (9.02%), Utah (9.13%), Hawaii (9.26%).
How bad is poverty in America? ›
37.9 million Americans are living in poverty, according to the U.S. Census. But the problem could be far worse. There are 37.9 million Americans living in poverty, accounting for 11.6% of the total population, according to the U.S. Census Bureau.
What country has the lowest poverty rate? ›
35 Countries with the Lowest Poverty Rate in the World
- Panama. Poverty Rate (2023): 1.3% ...
- Italy. Poverty Rate (2021): 0.8% ...
- Japan. Poverty Rate (2013): 0.7% ...
- Sweden. Poverty Rate (2021): 0.6% ...
- Spain. Poverty Rate (2021): 0.6% ...
- Australia. Poverty Rate (2018): 0.5% ...
- Austria. Poverty Rate (2021): 0.5% ...
- Hungary. Poverty Rate (2021): 0.4%
What is the rate of child poverty in the U.S.? Currently, 16% of all children in the United States — 11.6 million kids total — are living in poverty. A family of four with annual earnings below $29,678 is considered poor.
Does the US have a higher percentage of children living in poverty than any other industrialized country? ›
Children in the United States enjoy some of the highest average levels of disposable income in the OECD, but high income inequality also means that child relative income poverty rates are very high – around 20% of children in the U.S. live in relative income poverty, compared to just over 13%, on average across OECD ...
What percentage of children in the United States are living at or below the poverty level? ›
The ACS shows that in 2022 the child (people under age 18) poverty rate was 16.3%, 3.7 percentage points higher than the overall rate. But the poverty rate among those age 65 and over was 10.9%, 1.6 percentage points lower than the overall rate. The poverty rate for those ages 18 to 64 was 11.7%.
Which region in the United States has the highest percentage of children who live in low income families? ›
The states with the highest proportions of low-income residents include Mississippi (24%), New Mexico (23%), Louisiana (21%), and Oklahoma (20%).
