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09/20/2005:

"Poverty Increases as Incomes Decline Under President Bush"

The day after Hurricane Katrina hit, exposing much of the public to the tragic conditions of poverty in America, the Census Bureau quietly released its annual report entitled, “Income, Poverty, and Health Insurance Coverage in the United States.” In some respects, it provided a demonstrable backdrop to the pockets of poverty common to New Orleans and other cities. It also explained why, despite President Bush’s assertion last month that, “Americans have more money in their pockets,” many people aren’t faring as well as they once did.

The report indicates that in 2004 there was no increase in average annual household incomes for black, white, or Hispanic families. In fact, this marks the first time since the Census Bureau began keeping records that household incomes failed to increase for five consecutive years. Since President Bush took office, the average annual household family income has declined by $2,572, approximately 4.8 percent.

Black families had the lowest average income last year, at $30,134. By comparison, the average income for white families was $48,977. The average pretax family income for all racial groups combined was $44,389, which is the lowest it has been since 1997. The South had the lowest average family income in 2004.

Interestingly enough, as the Economic Policy Institute notes in their analysis of the Census Bureau’s report, not all families did poorly last year. Although the portion of the total national income going to the bottom 60 percent of families did not increase last year, the portion going to the wealthiest five percent of families rose by 0.4 percent. And while the average inflation-adjusted family income of middle-class Americans declined by 0.7 percent in 2004, the wealthiest five percent of families enjoyed a 1.7 percent increase.
zmag.org