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Joint Economic Committee Democrats
Poverty Charts
Chart 3.6
Last updated 7/1/06
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A 1995 National Academy of Sciences (NAS) panel of experts concluded that the official poverty measure, which was developed in the 1960s, does not accurately reflect either the current needs of the economically disadvantaged or the resources available to meet those needs.
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An experimental poverty rate based on many of the NAS recommendations is consistently higher than the official rate over the 1993-2004 period.
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The experimental rate declines more than the official rate in the economic expansion of the 1990s (in part because it takes account of the earned income tax credit).
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The experimental rate rises more than the official rate during the recent recession and its aftermath (in part because of increases in living costs that are not reflected in the official poverty thresholds).
Note: Click here for more information about how poverty is measured.
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