The rise in poverty is related to the Great Recession of 2007 which continues to the present day. The recession has lead to a decrease in jobs because many companies are trying to save money so they do not have to close their doors. While many economist at the National Bureau of Economic Research has stated that the recession has ended it still has not shown an increase in jobs. Robert Reich of the Business Insider estimates it will be another 5-8 years before the job market increases to the point it was before the recession, not including the jobs that were lost during the recession.¬¬¬¬¬¬¬¬ This means it will be at least another 5-8 years before poverty levels start to decrease to a sustainable amount.
Poverty will always be around, that is just the way the world works. It will also get worse or better based on how the job market is. How a person lives is related to how much money they have. If a person has no money, they will not have somewhere to live that is their own. Unemployment rates have jumped nearly 5% from 2008-2010 (US Census Bureau). While the unemployment rates were increasing by 4 % the poverty rates were also increasing by 8% between 2008 and 2009 (US Census Bureau).
One way many people have been battling the recession was to move in with more prosperous relatives. New York Times has shown an 11.6% increase of multifamily homes in the last two years. While some were moving in with relatives to escape living in poverty, others were finding safety in government programs. There has been a major increase in government assistance programs such as Food Stamps, Medicare, and Unemployment benefits. By September 2010 there had been a 17% increase in Medicare enrollment, 50% increase in Food Stamp enrollment, more than 10 million Americans on Unemployment Benefits and nearly 4.5 million people receiving cash assistance from the government.
President Obama expects that the amount of people on government assistance programs will only increase over the next years. Obama has added nearly 260 billion dollars to the government welfare plans and is planning for this to never decrease. When you increase the amount of government assistance programs then you will also be increasing the amount of taxes we pay as Americans and the national debt. Raising how much we will be spending on the programs can put us further in debt and make it harder for us to remove our selves of the effects of the recession.
As we are today nearly 40% of the people eligible for TANF (Temporary assistance for needy families) will not receive it (Center on Budget and Policy Priorities). The families that that do not have children and don’t qualify for unemployment benefits will not receive any type of cash assistance (Center on Budget and Policy Priorities). Most people do not even qualify for enough food stamps for a year worth of food. People are usually only award a 3 months supply out of every three year period (Center on Budget and Policy Priorities). While...