Understanding Poverty Measures in the United States

The video discusses how poverty is measured in the US, focusing on the official poverty measure developed in the 1960s by Molly Orshansky. It highlights the limitations of this measure, such as not accounting for geographic cost differences or modern expenses. The Supplemental Poverty Measure (SPM) introduced in 2011 addresses these issues by considering public benefits and tax credits. The video compares both measures, showing how the SPM provides a more comprehensive view of poverty, reflecting the success of anti-poverty programs.

What is one of the main factors that the U.S. government uses to measure poverty?

• Health status

• Social status

• Income level

• Education level

Who developed the official poverty measure in the 1960s?

• John Maynard Keynes

• Molly Orshansky

• Milton Friedman

• Adam Smith

What was the basis for the original poverty thresholds developed by Orshansky?

• Transportation costs

• Food costs

• Medical expenses

• Housing costs

Which of the following is a criticism of the official poverty measure?

• It overestimates the cost of food.

• It does not account for geographic differences in living costs.

• It includes too many social programs.

• It is updated too frequently.

What is one of the key features of the Supplemental Poverty Measure (SPM)?

• It includes the value of public benefits and tax credits.

• It only considers income from employment.

• It excludes medical expenses.

• It uses the same threshold for all regions.

How does the SPM adjust for differences in housing costs?

• It uses the highest housing cost in the country.

• It uses a national average for housing costs.

• It makes geographic adjustments.

• It excludes housing costs from the calculation.

What does the red line in the historical SPM graph represent?

• The cost of living index

• The average income level

• The supplemental poverty measure

• The official poverty measure

What is one benefit of the official poverty measure despite its limitations?

• It adjusts for geographic differences.

• It includes all necessary expenses.

• It provides a consistent measure to track poverty over time.

• It is frequently updated.

Which measure includes people who aren't related by marriage, birth, or adoption in the household definition?

• Neither measure

• Both measures

• Official poverty measure

• Supplemental poverty measure

Why is understanding different poverty measures important?

• To determine the richest states

• To understand who is poor in the United States

• To calculate the national debt

• To measure economic growth