Are The Poor Getting Poorer?

You’ve heard me say before that I have experienced being poor. Growing up in the cotton fields of South Carolina, my family was very poor. Our little shanty had walls so thin, one could overhear sign language. We didn’t have a bathroom or running water until we moved to North Carolina when I was 14.

God has blessed me beyond measure at this point in my life. I thank Him everyday for all that He has done.

I recently cleaned out my bookshelves and found an old book that caught my attention. It’s titled, “Myths of Rich and Poor. Why We Are Better Off Than We Think.” It was written in 1999. The authors demonstrate, with certainty, that the poor aren’t getting poorer. I believe it is even more relevant today.

They analyzed and tracked 50,000 individuals over a thirty-year period. They found that many families in the lowest income bracket were not still there fifteen years later. Some of these families had moved into the highest income brackets. 

The U.S. Treasury confirmed many of these findings. They found that 85.8 percent of taxpayers in the bottom bracket had moved up to higher income brackets within 10 years. Fifteen percent had moved into the highest income bracket. Income mobility is a factor that is fluid and constantly moving.

In most other countries today and when this book was written, there are many who will remain in the rich or poor category. That is not true in this country. In the good ol’ USA, the classes of people who remain permanently rich or poor measure in the single digits. Very few remain in the situation they are born into.

People become wealthier as they gain knowledge and experience in life. Income nearly doubles for those in age categories 25-34 as opposed to those under 25. It jumps again by 50% for those between 35-44. As we gain knowledge and experience, we are more valuable assets.

Another interesting statistic, households in the top income bracket have 2.1 workers per household. Those in the bottom have 0.6 workers per household. The study found that of the taxpayers in the lowest income bracket, 84% of  those workers only worked part time. The highest income bracket found 80% of workers were full-time employees. 

Another interesting statistic, only 7% of top income earners reside in a “nonfamily” household. In the bottom income category, 37% of low-income earners live in the “nonfamily” category.

No real surprises here. We knew it all anyway. Traditional families usually have higher incomes and incomes rise as we become more experienced.

We also must remember the internal data of some poverty statistics. For example, I read a report a few years ago, that there were pockets of poverty in Cambridge, Massachusetts. This poverty was in and around Harvard University. Imagine that. 

Poverty is determined by income levels. While one is a student at Harvard, income is probably very low. That might qualify one for the poverty ranks. However, I doubt that same person will remain in the low-income category after graduation.

You may remember that I’ve written on these pages before, one can avoid poverty by doing three simple things, finish high school, get a job (even minimum wage) and not have children until marriage. Over and over, that simple philosophy is proven true. It sounds so simplistic, and it makes one wonder why everyone wouldn’t try it.

I’ve said it before. Where you start in life does not determine where you finish. Many of us will go back and forth from one income bracket to another. Many of you have certainly experienced that firsthand.