Activity: Living in Poverty

 

Barbara Ehrenreich’s “Serving in Florida” opened our discussion of the minimum wage and the “working poor” in our nation.  Today, you are going to explore this lifestyle further to determine whether or not the federal poverty line is reasonable or if it is too high/too low.

 

In 2007, the poverty rate for a single individual was $10,210.  For a family of four this number was approximately $10,000 higher: $20,650. 

 

 

WITH A PARTNER:

Work out a budget for a family of four with an annual income of $20,650. 

v    Begin by determining what your family looks like – age, gender, special needs, etc.

 

v    Make a list of all the household expenses you expect to encounter over the course of the year.  Be sure to include costs for food, clothing, housing, transportation, healthcare, and other unavoidable expenses.  Think this through – there are many hidden costs that your parents pay that you might not be aware of. Make the assumption that you already own basic items such as a bed, couch, towels, etc.

 

v    Use the Internet to look up comparable prices/costs and document where you found your information (web address is fine). Create a list of expenses on a budget sheet.

 

v    When you’ve completed your annual budget – determine whether or not $20,650 is a feasible “poverty line.”  What sacrifices (if any) did you need to make to live? What does your quality of life look like?  What does this all mean? Write down your analysis on your budget sheet.

 

v    Print your budget and your response to the questions above. This is due at the end of the class period. I only need one copy per group – make sure both partners’ names are there.

2007 HHS Poverty Guidelines

Persons
in Family or Household

48 Contiguous
States and D.C.

Alaska

Hawaii

1

$10,210

$12,770

$11,750

2

13,690

17,120

15,750

3

17,170

21,470

19,750

4

20,650

25,820

23,750

5

24,130

30,170

27,750

6

27,610

34,520

31,750

7

31,090

38,870

35,750

8

34,570

43,220

39,750

For each additional
person, add

 3,480

 4,350

 4,000

SOURCE:  Federal Register, Vol. 72, No. 15, January 24, 2007, pp. 3147–3148