Political News

Report finds N.C. poverty higher, incomes lower than national average

Posted August 26, 2008

— The number of people without health insurance fell by more than 1 million in 2007, the first annual decline since the Bush administration took office, the Census Bureau reported Tuesday. Incomes edged up for the middle class while poverty held steady.

In North Carolina, the report found more than 1 million people, or 14 percent of the state population, living in poverty. While the national poverty rate held steady at 12.5 percent, poverty did rise among some groups. Latinos, children and the foreign-born – demographic categories that overlap considerably – experienced significant increases.

The median household income in North Carolina rose 2 percent from 2006 to 2007, to more than $44,000, more than 10 percent below the national median of $50,233.

The numbers represent a scorecard on President Bush's stewardship of the economy at the kitchen-table level. But they only went as far as the end of last year, before the current economic downturn began gathering force. Although there were some bright spots, it was a mixed picture.

And while the number of uninsured dropped to 45.7 million, down from 47 million in 2006, it was largely because more people were covered through government programs.

"The gains that occurred last year were welcome, but unfortunately, they are too little, too late," said Jared Bernstein, a senior economist with the liberal Economic Policy Institute in Washington. "The median household is no better off now than they were back in 2000, despite their deep contribution to the nation's economic growth during this period."

For example, after adjusting for inflation, last year's median household income of $50,233 was not significantly different from the figure for 2000, which was $50,557. "The American work force is baking a bigger economic pie, but the slices haven't grown at all," Bernstein said.

But White House spokesman Tony Fratto said the household income and health insurance numbers are definitely good news.

"It's clear that the long period of strong economic growth we were in had a positive impact for most Americans," Fratto said. "Obviously, today, we're dealing with higher energy prices and the downturn in housing, but the economy is showing enough resilience to keep growing in spite of those challenges."

Some analysts said that global trends, not just administration policies, are shaping the economic fortunes of individual Americans.

"Presidents like to take credit when things go well, and therefore they should get the blame when things don't go well, but there are lots of things driving this, not all of which are home-grown," said Douglas Besharov, an expert on poverty at the business-oriented American Enterprise Institute. "The oil shocks are not. And globalization, which on balance is good for the country, leaves winners and losers."

The Census report was immediately swept up into presidential politics. Democratic presidential candidate Barack Obama's campaign fired off a statement blasting what it called the "failed record" of Bush's economic policies and promising "bottom up economic growth" if the Illinois senator is elected.

Overall, the Census reported 37.3 million people living in poverty in 2007, of which 13.3 million were children. The poverty level for a four-person family in 2007 was $21,203. Among age groups, seniors had the lowest poverty rate at 9.7 percent, while children had the highest at 18 percent. The poverty rate for 2006 was 12.3 percent, but the change in 2007 was not statistically significant.

The welcome news on health insurance coverage was tempered by the continued erosion of private coverage paid for by employers and individuals. Government programs – such as Medicaid for the poor – picked up the slack, resulting in the overall reduction in people without health insurance.

The uninsured rate also fell to 15.3 percent, down from 15.8 percent in 2006.

"Private insurance has been falling (and) public insurance definitely went up," said David Johnson, who oversees the Census division that produced the statistics. The number of uninsured children also fell in 2007, after an increase in 2006 that had interrupted years of progress in getting more kids covered.

Seen over a longer period of time, however, the health insurance numbers are not reassuring. The number of uninsured – and the rate – are higher today than they were at the outset of the Bush administration in 2001. That year, 39.8 million people, or 14.1 percent, were uninsured.

"The number of uninsured is considerably higher than when the president took office, and in each year since then, employer-sponsored insurance has continued to diminish," said Ron Pollack, executive director of Families USA, a liberal group advocating coverage for all.

Stuart Butler, a top health policy expert at the conservative Heritage Foundation, said employers are scaling back on providing health care coverage because costs keep rising.

"I think it's more like we are seeing a tide that I don't think anybody can easily fix, particularly in the small-business sector," said Butler.

The Census report also underscored the growing role of women in the workplace, finding that the gap between the earnings of women and men has shrunk to an all-time low.

In 2007, women working full-time, year-round averaged 78 percent of what men earned. However, the gender gap varied considerably depending on the industries and types of jobs involved. In only two occupations – personal care/service worker and telecommunication and radio installation and repair – did women make more than men doing the same job.


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  • beachboater Aug 27, 2008

    Illegal immigrants seem to take the jobs that nobody else wants. And from what I've seen they get paid well!!! above the minimum wage. These of course, are supposedly LEGAL aliens.

    But how can poverty levels be higher??? Say it ain't so!!!!! What has Johnny Boy Edwards been doing all this time??????

    Oh...... I forgot.

  • just a gee Aug 27, 2008

    I NEED A RAISE!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • seeingthru Aug 27, 2008

    we are barely making it right now, no pay raise higher everything, I can't work one income etc, we do people keep moving here? Eden is gone..

  • whatusay Aug 27, 2008

    The reason NC has more poverty is because the illegal immigrants are driving the wage levels down. They are also taking jobs that many people in NC need. But Easley has make NC a sanctuary state and they will continue to come. Killing our health care system, our schools, and no respect for our laws. They don't think they need car insurance, or drivers licenses. Thanks Governor Easley.

  • jsanders Aug 27, 2008

    More poverty in NC sounds like good news for the lottery, which preys on the poor:

  • destewart2 Aug 27, 2008

    you all are so naive dont you now that everything bush does has to be approved by congress

  • Duke _Nukem Aug 27, 2008

    Republicans, democrats. Do any of you really think that when Bush leaves there will be a miraculous change in the economy? Or if Obama is elected everything will be right that is wrong. Your all naive. When are you going to realize that none of the presidents care about the common man. News flash, when I vote for a president, I vote for the lesser evil. They are all liars and self serving.

  • chfdcpt Aug 27, 2008

    Economy going down? It's Bush's fault.
    More folks without health insurance? It's Bush's fault.
    Cost of living going up? It's Bush's fault.
    Unemployment going up? It's Bush's fault.
    Invasion of the body snatchers? It's Bush's fault.

  • NCPictures Aug 27, 2008

    Geee, do you think there is a relationship between the low SAT scores and lower income?

    Geee let me think.

  • rayzer Aug 26, 2008

    What has our governor and NEA-supported democratic general assembly done to bring our salaries up to national average levels? You can't blame it on the president if other states are doing better.