Thursday, September 28, 2023

Child poverty increases and incomes decrease by 2022 in the US

Child poverty in the United States grew and average household income fell last year, while economic aid due to the pandemic stopped and inflation continued to rise, according to Census Bureau figures released on Tuesday.

At the same time, the official poverty rate for black Americans fell to the lowest level on record and income inequality fell for the first time since 2007 when pre-tax income is taken into account. However, economic inequality increases when after-tax income is considered, another consequence of the end of pandemic tax credits, according to Census Bureau reports on income, poverty and health insurance.

The reports show contradictory trends affecting the US economy: on the one hand, a strong labor market and an annual increase in full-time workers, but on the other, the rising inflation and ending the economic aid provided during the pandemic.


In response to COVID-19, the federal government expanded the child tax credit and sent checks to people affected by the crisis, reducing the poverty level in 2021. The expansion of the child tax credit has finally ended in 2021, and other benefits offered during that period expired last year.

As a result, the supplemental poverty measure for children grew by 7.2 percentage points to 12.4% in 2022, according to the Census Bureau.

This represents a return to pre-pandemic levels of child poverty.” declared Liana Fox, assistant division chief of the Census Bureau, in a press conference. “We found that the child tax credit caused a significant reduction in child poverty“.

In a statement, President Joe Biden blamed Republicans in Congress for refusing to extend the child tax credit, and promised to restore it.

The increase in child poverty reported today is no accident” said Biden.


The median household income in 2022 will be $74,580, a 2.3% decrease from 2021. Asian Americans have the highest median income, at nearly $109,000, while Blacks have the lowest, $53,000.

The official poverty rate is 11.5%, and for blacks it is 17.1%, the lowest since records have been kept. The supplemental poverty measure is 12.4%, an increase of 4.6 percentage points from 2021.

The Census Bureau publishes two indicators of poverty: the official poverty measure is based on monetary resources, and the supplemental poverty measure includes cash and other benefits, and reduces necessary expenses such as taxes and medical expenses.

Nation World News Desk
Nation World News Desk
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