Poverty in the United States concerns the International Monetary Fund (IMF). In a report on the U.S. economy, which was presented in Washington DC Wednesday, calling for more IMF policy initiatives to reduce poverty. Barrack Obama have not be able to reduce U.S’s poor children statistics.
The percentage of Americans living below the poverty line has been stable high since the financial crisis and the economic recession in 2008-09 despite the new economic expansion and increased employment.
According to figures from the United States of Statistics, 50 million Americans or 15 percent of the population is now below the poverty line in 2012.
The largest proportion of poor among children and young people is at age under 18. Over 20 percent of this group was poor.
There are more poor among African Americans (27.3 percent) and Hispanic (25.8 percent) than among the white population (12.8 percent).
The official poverty line in 2012 for an American household with two adults and two children was an annual income of $ 23,000 (U.S. $ 143,000) or less.
Mothers without a Husband
The group who struggle most are single mothers with dependents. 29.1 percent of them live below the poverty line.
Reducing poverty requires a sustained recovery of the economy and increased opportunities for the poorest to get paid work, says the IMF.
But it will also require political decisions to increase real wages for those at the bottom of the income pyramid and increase state support for the most vulnerable.
Increased minimum wage
IMF proposes to continue the scheme with additional income deductions for those with lower incomes and increasing the minimum wage.
The Obama administration has already decided to increase the minimum wage to $ 10.10 per. hour (£ 62.80) for public contracts in federal auspices and has proposed to Congress that this should apply to all workers. The minimum wage is currently $ 7.25 (U.S. $ 45.10).
It’s also taken the initiative to raise the minimum wage in municipalities and states.
The other major challenge for the U.S. is to restructure the economy from a period of approximately zero percent rate to gradually rising interest rates without limits growth, employment and inflation, says IMF.
The IMF believes that in spring and summer has been a step change in the U.S. economy after a setback in the first quarter due to an abnormally severe winter.
The weak first quarter (a fall in output of 2.9 percent) contribute to economic growth this year (1.7 percent) is lower than last year (1.9 percent), according to IMF estimates.
But now there is a higher rate of employment growth, rising production, increased trade and growing order books in activities that contribute to economic growth in the range of 3-3.5 rest of the year and 3 percent next year.
It will then be the highest economic growth registered in the U.S. since 2005.
However, new policy initiatives, there is a risk that the annual economic growth could fall to around 2 percent in the coming years. It is lower than the average annual growth of around 3 percent before the financial crisis.
The combination of an aging population and lower productivity growth in the workplace can lead to such a development, warns IMF.
Global growth engine
The recovery in the U.S. economy is now next to the strong growth of the Chinese economy the two main engines that pull with it the world economy.
A U.S. growth of 3 percent is twice as high as in the crisis-hit euro countries in the EU and significantly higher than the UK (2.5 percent) and Japan (1 percent), but still far behind the growth in China (7.5 percent) showed IMF figures that were presented in April.
IMF adds Thursday until new estimates for global growth.