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Poverty FAQs Part Three

  • How do our nation's efforts to reduce poverty compare to other nations?
  • What is the current federal minimum wage?
  • What share of the nation's wealth (net worth) is held by the richest 1 percent of Americans?
  • What share is held by the poorest 40 percent?
  • How much wealth do black families own as compared to white families?


  • How do our nation's efforts to reduce poverty compare to other nations?

      Country

     Poverty Rates
     before Gov.
     Assistance   

     Poverty Rates
     after Gov.
     Assistance  

     Rate of Success
     in Reducing
     Poverty

      Canada

    29

    10

    66%

      Finland

    33

    4

    88%

      France

    39

    8

    79%

      Germany

    29

    7

    76%

      Netherlands

    30

    7

    77%

      Norway

    27

    4

    85%

      Sweden

    36

    3

    92%

      United Kingdom  

    38

    13

    66%

    United States

    29

    18

    38%

    Source: Luxembourg Income Study (2001)


    Note that the second column shows that all of these industrialized nations have similar poverty rates before any government action is taken. For example, the United States has exactly the same rate of poverty as Canada and Germany.

    However, as the third column shows, the poverty rates drop dramatically in most nations as a result of government assistance. The rates for Canada and Germany, for example, drop to 10 percent and 7 percent respectively.

    The last column measures what percentage of those initially poor were lifted out of poverty because of government assistance. On this last measure, the United States falls far short when compared to other industrialized nations.
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    What is the current federal minimum wage?

    The federal minimum wage is now $7.25 per hour. If a person works full time at this minimum wage, that person's annual income would be $15,080 -- about $7,000 below the federal poverty level for a family of four.  

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    What share of the nation's wealth is held by the richest 1 percent of Americans? By the poorest 40 percent?

    The top 1 percent owns 38.1 percent of the nation's wealth (net assets).
    The bottom 40 percent owns two tenths of 1 percent of the nation's wealth.
     

    Wealth Distribution in the U.S.



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    How much wealth do black families own as compared to white families?

    Black families own one-tenth as much of America's wealth as white families.

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    Return to Poverty FAQs


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