By Leticia Miranda, Associate Director, Economic Policy Project
As if the outlook wasn’t bleak enough, yesterday the U.S. Census Bureau released its Supplemental Poverty Measure which shows that rates of poverty for Hispanics and the overall population are actually higher than officially reported in October. While the official measure counted 13.3 million Latinos as poor in 2010, the Supplemental Poverty Measure adds another 660,000 to the ranks of the poor. At 28.2%, Latinos have the highest rate of poverty among every racial and ethnic group in the country under the new measure. Unlike the official measure, the Supplemental Poverty Measure accounts for the value of non-cash benefits such as food assistance and subsidized housing, and the differences in costs of living by region and housing type. It also adjusts for necessary expenses such as out-of-pocket medical charges, payroll taxes, and childcare costs.
Weathering the rough economic downturn hasn’t been easy for most Americans. According to the supplemental measure, an additional 2.5 million Americans were living below the poverty line in 2010, a clear indication that the safety net has not been effectively assisting families and must be strengthened, not weakened. Hispanics are especially hard hit because they are less likely to use crucial safety-net programs. The Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, provides a stark example: only 53% of Hispanics eligible for SNAP used the program, compared to 63% of eligible Whites and 80% of eligible Blacks.
And to make matters worse, the growing federal deficit is now being used as an excuse to attack such safety nets. The first instinct among many deficit hawks is to cut programs for the poor. Some legislators have reflexively opposed putting taxes on the table, which calls into question how serious they are about balancing the budget. Perhaps we can give them the benefit of the doubt because they may not understand what it means to live in poverty.
Recently, NCLR held a series of town halls in communities across the country to hear from Latino seniors about how they are faring with Social Security. We heard stories from seniors, living on just $750 per month from Social Security, who cannot afford to buy food and must go to food banks to survive. Yet, we hear that the congressional Super Committee is putting across-the-board cuts to Social Security benefits on the chopping block. One particular cut being heavily discussed would reduce the increase in the Cost of Living Adjustment, so that the longer a person lives, the more pernicious the effect.
As members of the Super Committee convene, it’s important to remind them that many of the programs that they are considering cutting are truly lifelines to all Americans, including Latinos. Tax cuts that provide help to people who do not need it should be reconsidered before cutting programs that help keep people out of poverty. Job creation is obviously a key factor to getting our economy back on track. The Super Committee must make decisions that prioritize economic growth first and address the long-term debt responsibly over time, while ensuring that our safety net remains in place so that more Americans don’t fall into poverty.