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And at Home
T
HE INCOME and poverty figures the
figure in a recession?
Census Bureau released the other day
The people who wrote the 1996 welfare bill
weren't a lot of help in answering the
panned for gold in the statistics and found a
main income and poverty questions the country
little. "Incomes are up for female-headed fami-
faces. They showed pretty much what you
lies, many of whom have left welfare for work,"
would expect, given the economic conditions
said Rep. Clay Shaw, a principal author. But the
that prevailed last year. With unemployment at
Center on Budget and Policy Priorities, a think
a 24-year low, but inflation remaining pleasantly
tank that opposed the bill, drew. a different
low as well, real incomes were up, and poverty
lesson. It noted that, on average, poor families
was down. Income inequality remained high but
were farther below the poverty line last year
stable.
than the year before. "This increase in the depth
That's mostly good news, except that last
of poverty
appears to be related to weaken-
year wasn't much of a test. The current
ing of safety net programs," it said; "the decline
expansion has been going on since early 1991.
in the number of families receiving assistance
The people at the lower end of the income
was much greater than the decline in the
distribution still haven't gotten as much of a lift
number of families that [were] poor. The
from it as those at the top; not close. Nor is it
proportion of poor families receiving basic
clear what will happen to either income inequal-
assistance
has decreased significantly. The
ity or poverty when the business cycle reasserts
data
show that the assistance programs
itself and the economy turns down. Twenty
lifted substantially fewer children out of poverty
percent of U.S. households now have half the
in 1997 than in 1995 or 1996."
income; the other 80 percent split the rest. Does
The fact is that no one knows what effect the
that figure get better or worse when the
welfare bill may have had on poverty last year,
economy falters? After six-plus years of steady
much less the effect it may have in a tougher
growth, a fifth of the children in the country
future. Last week's sunny reports do not
lived in poverty last year. What happens to that
contain the answer.
The Washington Post
MONDAY, SEPTEMBER 28, 1998
PHOTOCOPY
PRESERVATION
10 Keep Imported Food Safe
W
HILE LETTING much else languish,
has made good progress already on this model
Congress has spared some attention
with beef and poultry.
for improving food safety. A chunk of
The Food and Drug Administration, which
new money for modernization and research,
oversees most other food imports, wants to do
especially in dealing with the rising volume of
the same and notes that half of the seafood
food imported from abroad, is at issue in the
Americans eat now is imported, along with 38
agriculture appropriations bill now in confer-
percent of fruit and 12 percent of vegetables-
ence. Sen. Susan Collins (R-Maine) held hear-
all numbers that have tripled in the past decade.
ings last week on the longer-term prospects for
(The FDA currently manages to inspect only
dealing with the same issue.
about 2 percent of the flow, down from 10
The problem-an inability of those programs
percent in 1992.)
to keep up with an increasingly global food
Given the scope of changes needed to keep
supply-raises the need to go beyond the
up with this trend, the new funds proposed
strained system of mostly visual customs in-
under the president's "food safety initiative"
spections. In the long term it means working
earlier this year look like a stopgap. After the
directly with industries abroad to help them
president's initial request for $101 million in
meet health, safety and cleanliness standards.
new funding for border inspections and patho-
To describe the task this way is to appreciate
gen research fell flat, the Senate unexpectedly
that it will be an immense endeavor, involving
added $66 million. If the conference committee
long-term relationships that could end up indi-
approves that money, it could lay a useful
rectly benefiting the consumers in other nations
framework, but the broader task of adjusting to
too. Advocates say the Agriculture Department
a worldwide food system will remain.
The Washington Post
MONDAY, SEPTEMBER 28, 1998
PHOTOCOPY
PRESERVATION
09/25/98 13:30
CBPP -> 202 456 6244
NO.499 P001/007
62807
CENTER ON BUDGET
AND POLICY PRIORITIES
FAX
From the desk of
Ellen Nissenbaum
Legislative Director
202-408-1080
Fax: 202-408-1056
Center on Budget and Policy
[email protected]
Priorities
To:
Kevin Thurm 690-7755
Olivia Golden * 690 690-5722 a
Pat Ruggles * 690-6562 690 -
Melanne Verveer 456-6244
Gene Sperling -456-2878
Date: September 24, 1998
RE:
Here is the Center's report on the Census data on poverty released today.
We felt that it would be of interest to you.
820 First Street, NE, Suite 510, Washington, DC 20002
Tel: 202-408-1080 Fax: 202-408-1056 [email protected] http://www.cbpp.org HN0026
-
09/25/98 13:30
CBPP
202 456 6244
NO. 499 P002/007
NEWS
CENTER ON BUDGET
RELEASE
AND POLICY PRIORITIES
FOR IMMEDIATE RELEASE:
CONTACT: Robert Greenstein
820 First Street, ME
September 24, 1998
Herb Schaffner, Michelle Bazie
Suite 510
(202) 408-1080
Washington, DC 20002
Tel: 202-408-1080
POVERTY RATES FALL, BUT REMAIN HIGH FOR A PERIOD
Pax: 202-408-1056
WITH SUCH LOW UNEMPLOYMENT
[email protected]
http://www.cbpp.org
HandsNet: MN0026
Strong economic growth and low unemployment reduced poverty
and raised incomes in 1997, with especially strong gains among minorities.
Robert Greenstein
Several years of growth have returned the poverty rate and median
Executive Director
household income to the levels at which they stood in 1989, the last year
tris J. LOV
before the recession of the early 1990s. The Census data show that 13.3
Deputy Director
percent of Americans lived in poverty in 1997, down from 13.7 percent in
1996.
Board of Directors
The poverty rate remained high, however, for a year in which the
John RL Aramer. Chair
Tulane Law School
unemployment rate averaged 4.9 percent, its lowest level in 24 years. The
poverty rate in 1997 was at about the same level as it was in 1987 through
Henry J. Aeron
Brookings Institution
1989, years in which unemployment averaged between 5.3 percent and 6.2
Barbara B. Blum
percent. The 1997 poverty rate was substantially above the poverty rates
Columbia University
for every year of the 1970s, even though the unemployment rate was close
David de Perranti
The World Bank
to or above six percent for more than half of the years of that decade.
Marian Wright Edelman
Children's Defense Fund
Poor Families Grow Poorer, Welfare Caseloads Decline
James O. Glbson
DC Agenda
In addition, poor families became poorer, on average, in 1997. The
Richard P. Nathan
average amount by which families that are poor fall below the poverty line
Melson A. Rockefeller
Institute of Government
increased $200, the Census figures show, from $6,395 in 1996 to $6,602 in
Marion Pince
1997. (These figures are both expressed in 1997 dollars.)
Johns Hopkins University
Sol Price
This increase in the depth of poverty for the average poor family
Chairman. The Price Company
(Retired)
appears to be related to a weakening of safety net programs in 1997; the
Robert D. Reischauer
decline in the number of families receiving assistance was much greater
Brookings Institution
than the decline in the number of families that are poor. The proportion of
Audrey Kawe
poor families receiving basic cash and food assistance that can lessen the
Lockheen Martin IMS
severity of their poverty has decreased significantly. The Census data also
Susan Sechier
The Aspen institute
show that the assistance programs lifted substantially fewer children out
Juan Sepulveds. Jr.
of poverty in 1997 than in 1995 or 1996.
The Common Enterprise/
San Antonio
William Julios Wilson
Harvard University
- more -
09/25/98 13:30
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NO. 499 P003/007
Poverty Rates Fall
September 24, 1998
Page 2
This lack of greater progress in reducing poverty also reflects a broader, long-
term trend - income growth over the past two decades has been unevenly spread.
Average household income in 1997 exceeded average income in 1989 only for the top
two-fifths of the population. For the rest of the population, average income was at or
below the 1989 level, after adjusting for inflation. Income gains have been largest for
the five percent of households with the highest incomes.
Income Gains Largest for High-income Households
In 1997, median household
income rose to $37,005, about the same
Change in Average Household Income
as in 1989, after adjusting for inflation.
1996 - 1997
The incomes of those at the top of the
5%
income spectrum grew more, however,
than the incomes of those at the middle
4%
or the bottom.
Between 1996 and 1997, the
Percent Change
3%
2%
average income of the top
1%
fifth of households rose 3.9
0%
percent, or $4,600, after
Lowest
Second
Middle
Founh
Highest
Top
5%
Income Quintile
adjusting for inflation.
The average income of the
top five percent rose 4.7
percent, or $9,600.
Change in Average Household Income
1996 - 1997
Meanwhile, the average
$10,000
income of the middle fifth
rose 2.4 percent, or $880,
$8,000
while the average income
of the bottom fifth climbed
Dollar Change
$6,000
$4,000
0.9 percent, or just $80.
$2,000
The Census data also show that
a
every income group except those at the
Lowest
Second
Middle
Fourth
Highest
Top
5%
top of the income scale received a
Income Quintile
significantly smaller share of national
pre-tax income in 1997 than in 1989,
while the top groups received larger shares. In 1997, the 20 percent of households
with the highest incomes received nearly half - 49.4 percent - of the national income,
while the other 80 percent of the population divided the other half of the national
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Poverty Rates Fall
September 24, 1998
Page 3
income. Although the 49.4 percent figure did not represent a statistically significant
change from the 49 percent figure for 1996, it tied for the largest share of national
income that the top fifth of households have received in any year on record. It also
significantly surpassed the share of national income that the top fifth of households
received in 1989. Each one percent of national income equals $51 billion.
The top five percent of households received 21.7 percent of the national
income, also equal to the highest level on record. Meanwhile, the shares of income
each of the bottom four fifths of the population received were lower in 1997 than in
nearly all other years on record. The share going to the middle three-fifths of the
population combined was at a record low level.
Poverty Rates Decline, Incomes Rise for Blacks and Hispanics
The brightest parts of the new Census report are the strong gains registered by
Blacks and Hispanics. Poverty dropped for both groups in 1997, with the Black
poverty rate falling from 28.4 percent in 1996 to 26.5 percent in 1997, an all-time low.
The Hispanic poverty rate also dropped substantially, declining from 29.4 percent in
1996 to 27.1 percent last year.
Median household income also climbed for both groups, rising 4.3 percent, or a
little over $1,000, for Blacks and 4.5 percent, or $1,150 for Hispanics. These strong
gains suggest that minorities - the groups with the highest unemployment rates -
benefit disproportionately when the overall unemployment rate drops below five
percent. These data also suggest that keeping unemployment at its current low levels
is especially important to making continued progress in raising incomes and reducing
poverty among Blacks and Hispanics.
Poverty rates for Blacks and Hispanics continue, of course, to be much higher
than poverty rates among non-Hispanic whites. Some 8.6 percent of non-Hispanic
whites were poor in 1997, a rate less than one-third that for Blacks and Hispanics.
Similarly, median household income in 1997 was more than 50 percent higher for
non-Hispanic whites than for Blacks and Hispanics.
Poverty at All-time Low for Elderly, but not for Working-age Adults
In 1997, the poverty rate stood at or below its 1989 level for the youngest and
oldest age groups, but not for working-age adults. Children continued to have the
highest poverty rate of any age group at 19.9 percent, although this poverty rate has
returned to the level of the child poverty rate in 1989.
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-
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Poverty Rates Fall
September 24, 1998
Page 4
The Census Bureau reported that children constituted 40 percent of all people
who were poor in 1997 although they made up only 26 percent of the population. The
Census data show an extremely high poverty rate for one group of children - those
under age six who live in female-headed families with no spouse present. Their
poverty rate was 59 percent last year.
Among working age adults 18 to 64, the 1997 poverty rate of 10.9 percent
remained significantly above the 1989 poverty rate of 10.4 percent. This likely reflects
the long-term downward trend in wages for lower-paying jobs.
For the elderly, the 1997 poverty rate of 10.5 percent ties for the lowest rate on
record. Almost all elderly individuals receive Social Security benefits. Since Social
Security benefits are tied to average wages earned during a worker's career and each
new group of retirees has earned higher average wages than previous groups of
retirees, Social Security benefits have been steadily rising. This pushes down elderly
poverty rates. The poverty rate for elderly people of 10.5 percent in 1997 compares to
a 24.5 percent rate in 1970 and a rate of approximately 35 percent in 1960. Census data
show that in 1997, the elderly poverty rate would be close to 50 percent in the absence
of Social Security.
One group for which the poverty rate trends are less favorable consists of
individuals of all ages who live alone or with others to whom they are not related.
Some 20.8 percent of these people, termed "unrelated individuals" by the Census
bureau, were poor in 1997, a poverty rate substantially above the 19.3 percent poverty
rate for this group in 1989.
Decline in Number of People Receiving Assistance Outstrips Decline in Poverty
The new Census data show that in recent years, the declines in the number of
people receiving basic assistance targeted on needy families have far outstripped the
decline in the number of people who are poor. This suggests that sizable numbers of
people who are poor are receiving less aid than in the past. The Census report also
indicates that this decrease in assistance is one of the reasons that poverty rates have
not declined more in the past few years amidst a stunning performance by the
economy, and it helps to explain why the average poor family has become poorer.
From 1995 to 1997, the number of poor people in female-headed families with
children fell 4.3 percent. But the number of people receiving welfare assistance for
poor families with children dropped 22.6 percent, or more than five times as large a
percentage. Just between 1996 and 1997, the number of people receiving welfare
assistance fell by nine times as large a percentage as the number of poor people in
female-headed families with children; the number of poor people in such families fell
-
more
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Poverty Rates Fall
September 24, 1998
Page 5
1.7 percent in 1997, while the number
receiving welfare assistance in an average
Change In Number of Poor People versus Change in
month fell 15.7 percent.
Number of People Receiving Cash Aid
0%
X
Of particular concern are trends in
-4%
the food stamp program, a program for
which most poor households are eligible,
Percent Decline
2
-8%
including the working poor. Between
-10%
1995 and 1996, the number of poor
-12%
people remained statistically unchanged,
-14%
but the number of people receiving food
-16%
1995 1996
1996 1997
stamps in an average month fell 1.2
million, or nearly five percent. This
Change in Number of AFDC/TANA
Change in Number of People in Poor
Recipients
Bingle Mother Femilies
trend accelerated in 1997. From 1996 to
1997, the number of poor people fell
955,000, or 2.6 percent, while the number receiving food stamps plunged an
additional 3.1 million, or more than 12 percent. During the two-year period from 1995
to 1997, the decline in the number of people receiving food stamps - 4.4 million -
was five times greater than the decline in the number of people living in poverty.
The food stamp figures are especially noteworthy because the income limit for
food stamps is slightly above the poverty line; as a result, families moving from
public assistance to low-wage work that leaves them in poverty do not lose eligibility
for food stamps. These data indicate that the reductions in the number of households
receiving food stamps have exceeded reductions in need and that the proportion of
poor people receiving basic food assistance to help them secure an adequate diet has
declined.
Center director Robert Greenstein noted that anecdotal evidence suggests that
many families no longer receiving cash assistance are not receiving food stamps
either. "Practices in some states to dissuade families from receiving welfare aid may
be having the unintended effect of discouraging many working poor families from
receiving food stamps even though they remain eligible for this assistance,"
Greenstein said.
The effects of these declines in public assistance and food stamp receipt show
up clearly in unpublished Census data released today on poverty rates under
alternative measures of poverty that count non-cash benefits such as food stamps as
income. These Census data show that means-tested programs such as food stamps
and cash welfare assistance lifted 850,000 fewer children out of poverty in 1997 than in
1995.
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13:32
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Poverty Rates Fall
September 24, 1998
Page 6
These data also show that the percentage of poor children receiving food
stamps, as well as the percentage receiving cash welfare assistance, has declined
significantly in the past two years. For example, in 1995, some 61.5 percent of poor
children received cash assistance, while in 1997, some 53.3 percent did.
The Census Bureau's alternative measures of poverty also show strong positive
effects from the expansions of the Earned Income Tax Credit enacted in 1990 and 1993.
Due to the EITC expansions, federal tax policy lifted 400,000 more children out of
poverty in 1997 than in 1995 and 1.4 million more children out of poverty last year
than in 1993. The effects of the EITC in lifting children out of poverty are unlikely to
grow much further as the EITC expansions enacted in 1993 were phased in fully by
1997. Food stamp and welfare caseloads, by contrast, continue to decline.
Employment and Minimum Wage Increases Reduce Poverty and Raise Incomes
The new Census data also show that although median weekly earnings of full-
time workers rose in 1997, these earnings remain below their level for most of the
period since 1970. These long-term trends are particularly unfavorable for male
workers. For men working full-time year-round, wages remain $1,500 below 1989
levels, after adjusting for inflation. (For women working full-time, year-round, wages
were $750 higher in 1997 then in 1989.) Median household income is higher than in
any year except 1989 despite these less favorable trends in wages because of large
increases in the number of people working and the number of hours worked.
Labor Department data show that the proportion of adults who worked in 1997
reached the highest level ever recorded. In addition, data from the Economic Policy
Institute indicate that the amount of time that families work increased significantly
between 1989 and 1997, with some increase occurring between 1996 and 1997. In
short, increased hours of work have offset declines in wages.
One other factor appears to have helped raise wages and family incomes for
lower-paid workers in 1997 - the increase in the minimum wage from $4.25 an hour
to $5.15 an hour, instituted in two stages in October 1996 and September 1997. A
recent Economic Policy Institute study found that the minimum wage increase has
contributed to faster growth in the wages of low-wage workers.
The Center on Budget and Policy Priorities is a nonpartisan research organization and policy institute
that conducts research and analysis on a range of government policies and programs, and specializes in
issues related to fiscal policy, social welfare and nutrition policy. It is supported primarily by
foundation grants.
####
TPSEPT24. WPD
Page 1
PRESIDENT CLINTON:
AN ECONOMIC AGENDA THAT IS WORKING FOR AMERICA'S FAMILIES,
BUT FISCAL DISCIPLINE MUST BE MAINTAINED
September 24, 1998
"The report this morning shows that economic growth continues to raise incomes, lift
millions out of poverty, and extend opportunity -- and it shows we must do more. We must use
our prosperity, and the confidence it inspires, to help our hardest-pressed families to ensure
continued economic growth for all Americans."
President Bill Clinton
September 24, 1998
Today, in a Rose Garden event, President Clinton will speak about the results of the Census
Bureau's annual report of income and poverty, which shows that the strength of our
economy is lifting family income and lowering poverty rates. The President will also renew
his call for Congress to maintain our fiscal discipline, save Social Security first, and
continue to invest in our people.
An Economic Plan That Supports Hard-Working Americans. President Clinton's 1993
economic plan made investing in our people, reducing our deficit, and expanding our
exports the key priorities to economic success and prosperity. Five years later, our deficit
is gone, and our economy continues to grow. Today's Census Report is further evidence
that the President's economic plan is working for America, in 1997:
The income of the typical American household grew by nearly twice the rate of
inflation. Since 1993, the typical family's real income has risen by more than
$3,500;
The income of African-American Households grew by 4.3 percent. Since 1993, the
median income of African-American households has increased over $3,350, a 15
percent increase when adjusted for inflation;
The income of Hispanic Households grew by 4.5 percent. Over the past two years,
the income of the typical Hispanic household has increased over $2,550, or nearly
11 percent, the largest two-year increase in Hispanic income on record;
4.3 Million people were lifted out of poverty by the Earned Income Tax Credit,
including 2.2 million children, 1.1 million African-Americans, and nearly 1.2 million
Hispanics;
The poverty rate fell to 13.3 percent, the lowest it has been since 1989. Under
President Clinton, the poverty rate has declined from 15.1 percent to 13.3 percent,
meaning that 3.7 million fewer Americans live in poverty today than in 1993;
The African-American poverty rate fell to its lowest level on record, with a four-year
drop that is the largest in nearly 30 years;
The Hispanic poverty rate dropped 2.7 percent, the largest one-year decline since
1978;
The elderly poverty rate dropped to 10.5 percent, as low as it has ever been.
Maintaining Fiscal Discipline, Investing In Our Future. While today's report shows that the
President's economic plan has benefitted many groups of Americans, there is more we
must do to ensure that opportunity is extended to all -- we must maintain the strict fiscal
TPSEPT24.WPD
Page 2
discipline that has given us the strongest economy in a generation:
Saving Social Security First. Fiscal discipline begins with setting aside every penny
of any surplus until we save Social Security. The President has proposed targeted
tax cuts that are fully paid for, but opposes plans to drain the surplus to pay for
new tax cuts;
Continuing Investments In Our People. The President has called for critical
education investments that will reduce class size, hire 100,000 teachers, modernize
and build thousands of schools, and give our children access to powerful education
technology. Unfortunately, the Congress has failed to act on these important
initiatives. The President is once again calling on Congress to help give our children
a world-class education to ensure our economic competitiveness in the 21st
Century;
Maintaining Leadership In The Global Economy. While we are enjoying economic
prosperity at home, our allies and trading partners are suffering abroad. If we are to
continue our economic success, we must recognize our responsibility to lead in the
global economy. The President is again urging Congress to fully fund our dues to
the International Monetary Fund.
KEY FACTS on CENSUS INCOME AND POVERTY REPORT
September 24, 1998
TODAY, THE CENSUS BUREAU RELEASED THEIR ANNUAL REPORT ON INCOME
AND POVERTY IN AMERICA FOR 1997. HERE ARE SOME OF THE RESULTS:
Broad-Based Income Gains:
Typical Household Income Up 1.9 Percent in 1997. Income for the median household
rose $699, from $36,306 in 1996 to $37,005 in 1997, adjusted for inflation.
Typical Family Income Up $3,517 Since 1993. Another measure of income -- family
income, which excludes single individuals and counts only related members in any
household -- shows a similar trend. Last year, the median family's income, adjusted for
inflation, increased 3.0 percent (or $1,297) -- the fourth consecutive annual rise. Since
President Clinton's Economic Plan passed in 1993, median family income has increased
from $41,051 in 1993 to $44,568 in 1997 -- that's a $3,517 increase in income, adjusted
for inflation. From 1988 to 1992, median family income fell $1,835, adjusted for
inflation.
Under President Clinton, The Typical African-American Household's Income Is Up
$3,354. The median income of African-American households rose 4.3 percent (or $1,029)
last year. And since 1993, the median income of African-American households has increased
from $21,696 to $25,050 -- that's $3,354 or a 15-percent increase, adjusted for inflation,
between 1993 and 1997.
Income of Typical Hispanic Household Up $2,553 in Past Two Years. In 1997, the
income of the median Hispanic household, adjusted for inflation, increased from $25,477
in 1996 to $26,628 in 1997 -- that's an increase of $1,151 or 4.5 percent. Over the past
two years, the income of the typical Hispanic household has risen $2,553 -- or nearly 11
percent -- the largest two-year increase in Hispanic income on record.
After Rising Sharply for 20 Years, Inequality Has Stabilized. After rising for nearly
20 years, income inequality has not changed significantly over the past four years. Since
1993, every income group -- from the most well-off to the poorest -- experienced a real
increase in their income. [CHECK WITH CENSUS DATA]
Earnings for Typical Workers Up. Last year, the earnings of the median full-time,
year-round male rose 2.4 percent, from $32,882 in 1996 to $33,674 in 1997 and the
earnings of the median full-time, year-round female rose 3.0 percent, from $24,254 in
1996 to $24,973 in 1997. This means that the female-to-male ratio remained at 74
percent -- its all-time high.
Reductions in Poverty:
Poverty Rate Fell To 13.3 Percent in 1997 -- Down from 15.1 Percent in 1993. In 1997,
the poverty rate dropped to 13.3 percent from 13.7 percent the year before. Since President
Clinton signed his Economic Plan into law, the poverty rate has declined from 15.1 percent in
1993 to 13.3 percent last year. That means that there are 3.7 million fewer people in poverty
today than in 1993. (In 1997, the poverty threshold was $16,400 for a family of four.)
The African-American Poverty Rate Down To Its Lowest Level on Record. While
the African-American poverty rate is still far above the poverty rate for whites, it
declined from 28.4 percent in 1996 to 26.5 percent in 1997 -- that's its lowest level
recorded since data were first collected in 1959. Since 1993, the African-American
poverty rate has dropped from 33.1 percent to 26.5 percent -- that's the largest four-year
drop in African-American poverty in more than a quarter century (1967-1971).
Last Year, Largest Hispanic Poverty Drop In Two Decades. Last year, the Hispanic
poverty rate dropped from 29.4 percent to 27.1 percent -- that's the largest one-year drop
in Hispanic poverty since 1978. While there is still more work to do, since President
Clinton took office, Hispanic poverty has dropped from 30.6 percent to 27.1 percent.
Under President Clinton, Largest Four-Year Drop in Child Poverty Since 1960s.
While the child poverty rate remains high, in 1997, it declined from 20.5 percent to 19.9
percent. Under President Clinton, the child poverty rate has declined from 22.7 percent
to 19.9 percent -- that's the biggest four-year drop in nearly 30 years (1965-1969).
Elderly Poverty Rate As Low As It's Ever Been. In 1997, the elderly poverty rate
dropped to 10.5 percent, from 10.8 percent in 1996. The elderly poverty rate is now as
low as it's ever been -- it was also 10.5 percent in 1995.
Child Poverty Among African-Americans Down To Lowest Level on Record. In 1997,
the African-American child poverty rate fell from 39.9 percent to 37.2 percent -- its lowest
level on record (data collected since 1959). Since 1993, the child poverty rate among
African-Americans has dropped from 46.1 percent to 37.2 percent -- that's the biggest four-
year drop on record.
Hispanic Child Poverty Dropped More Last Year Than Any Year on Record. In
1997, the Hispanic child poverty rate dropped from 40.3 percent to 36.8 percent -- that's
the largest one-year drop on record (data collected since 1976). Since 1993, the child
poverty rate among Hispanics has declined from 40.9 percent to 36.8 percent.
4.3 Million People Lifted Out of Poverty By EITC -- Double The Number in 1993. In
1993, President Clinton expanded the Earned Income Tax Credit, providing a tax cut for low-
income working families. In 1997, the EITC lifted 4.3 million people out of poverty -- that's
double the number of people lifted out of poverty by the EITC in 1993. In 1997, the EITC
lifted 2.2 million children, 1.1 million African-Americans, and nearly 1.2 million Hispanics
out of poverty.