Copied from the inaugural issue of a newsletter from the National Council of the St. Vincent de Paul Society

What is poverty?

Who are those living in poverty?  

What does it mean to be living in poverty?  

What are the barriers that keep those who are vulnerable or living in poverty from living with dignity?

The questions above are those that lead to a true understanding of poverty in America, and answering them is the key to developing the best solutions for reducing poverty.

What is Poverty?

The National Opportunity and Community Renewal Act, developed by Catholic Charities USA and introduced in Congress, seeks ultimately to transform the way this nation assists people living in poverty by implementing a community-based approach that uses federal safety net funds in a more efficient, targeted way to help people move to self-sufficiency.

One of the main features of that approach is utilizing better definitions and measures of poverty, so as to fully understand the particular challenges of people living in poverty.

In his book, Think and Act Anew, Rev. Larry Snyder states: "Having real measures of the struggles facing millions of Americans, like having real marketing data for a successful business, is the first step in building a foundation for twenty-first century government solutions to poverty."

The official poverty rate in America is measured by the government using a formula developed in the 1960s. Over the years, this formula has grown increasingly inadequate in measuring poverty, as social and work conditions, costs, and family structures have changed. Despite the loud criticisms of the measure, elected officials are reluctant to redefine poverty because it would most likely result in an increase in the percentage of people classified as living in poverty. And more people who are living in poverty is a reality that many in government (and perhaps many in our country) do not want to deal with. But if we are to make any progress in reducing poverty, we have to recognize what we are dealing with.

Who are the Poor?

In Think and Act Anew, Fr. Snyder writes, "It is easy to think of those living in poverty as a homogenous, monolithic bloc....Nothing could be further from the truth. But that's how our government is structured to address poverty and thus the way government defines poverty." He notes that individuals living in poverty can be grouped into three categories "defined by their life experience, rather than solely by their economic status":

People who need help but lack the skills and abilities necessary to succeed in the work world - possibly because of a lack of education, experience, and cultural and social skills. These are often the intergenerational poor.

People who need help but have a limited ability to care for themselves because they are sick or have physical or mental limitations that make it difficult or impossible to provide for their basic needs. Children and the elderly are likely to fit in this category.

People with skills and experience but who still need help, possibly because they are limited by their circumstances, such as the current economic downturn with its foreclosures and millions of jobs lost. This could include the many thousands of underemployed working well below their skill levels.

By understanding the differing needs, challenges, assets, and circumstances of people living in poverty, we can develop better solutions to reducing poverty among those who have the capability to live self-sufficiently and ensure that those who do not at least have the capability of living with dignity.

What Does it Mean to be Living in Poverty?

The federal poverty rate relies solely on an income measure of poverty. A family of four is living in poverty if earnings are less than $22,350 in annual income. A family is not living in poverty if the family members make above that amount. And yet, millions of working Americans above and below that threshold cannot meet their basic needs. Therefore, one better measure of poverty would be based on what it actually costs people to meet their basic needs.

It's been suggested that people are living in poverty if they meet five criteria:

• They cannot afford housing that is clean, safe, and in good repair.
• They cannot afford nutritious food for themselves and their family on a regular basis.
• They cannot consistently pay their utility bills even though it is a priority.
• Their children are not adequately clothed for school with clean clothes that fit and are in good repair, and they do not have proper clothing for work.
• They cannot afford to go to the doctor for any kind of illness for fear that a visit will be beyond their means to pay for it.

Taking this idea further, another suggestion has been to define poverty in relation to a      community-specific living wage: "[The poverty line] could actually be centered on the calculated living wage. Anyone not making the living wage would be below the poverty line." Fr. Snyder says of this approach: "This idea calls for...develop[ing] a measure based on the cost of living in metropolitan (as well as other) regions and what it takes to make ends meet with housing, transportation, health care, child care, education, and food."

By understanding what it means to be living in poverty in terms of a family's ability to meets its basic needs, we get a much more accurate picture of the problem.

As Fr. Snyder writes, "The awareness of the reality of the breadth of poverty is a first step to creating the political will for change."

What are the Barriers that Keep People from Living with Dignity?

Poverty, while certainly characterized by insufficient income for basic needs, is often much broader than that. It often means lack of access to affordable health care and to quality educational opportunities, both of which have an impact on one's ability to provide sufficient income for oneself and one's family. It may also mean a lack of social, job, or independent living skills. Thus, a more complete effort to reduce poverty takes into consideration other factors besides income that may impact a person's ability to live self-sufficiently and with dignity.

One tool that's been put forth to reduce poverty is the American Human Development Index, which measures human development through three indicators:

• A long and healthy life, measured by life expectancy
• Access to knowledge, measured by educational attainment and school enrollment
• A decent standard of living, measured by median earnings

This kind of measure looks at people holistically, and focuses on "the process of enlarging people's freedoms and opportunities and improving their well-being."  

Conclusion

Helping the public, donors, funders, business people, and lawmakers understand poverty and the way it affects individual lives can lead to change in the way our country addresses the problem. As Fr. Snyder reminds us: "By changing our focus from a body of statistics to the human person, we will be able to develop the right solutions."