Our Blessed Economy Under King George II

Census: Poverty up in 2003
Number of poor Americans increases by 1 million


PERONET DESPEIGNES GANNETT NEWS SERVICE WASHINGTON -- The number of Americans in poverty and those without health insurance each rose by more than 1 million in 2003, the Census Bureau reported Thursday. The median household income was virtually unchanged, but women lost ground against men for the first time since 1999.
The Census report showed the number of Americans in poverty rising by 1.3 million to 35.9 million, or one in eight people. That represents the third straight year poverty has risen. The number of Americans without health insurance rose by 1.4 million to 45 million, or 15.6 percent of the population -- also a three-year trend.

The income of the median U.S. household was virtually flat at $43,318 after two years of declines. The divide between rich and poor also was basically unchanged, although some alternative measures suggested a slight widening of the income gap.

The results were expected, coming on the heels of more current reports showing rising long-term unemployment, slow wage growth and surging health care costs through 2003.

Still, they were interpreted by Democratic presidential candidate John Kerry as proof that President Bush's economic policies have failed the middle class. "Under George Bush's watch, America's families are falling further behind," he said.

Kerry and other Democrats have sought to make a lackluster economic recovery the top issue in the campaign, as it is in most presidential elections.

Many surveys show that Iraq and terrorism are of equal or greater concern to voters. But in a close election, perceptions of the economy could tip the balance.

Gene Sperling, a Kerry campaign economic adviser, called 2003 "the second full year of the recovery, when one typically expects to see strong job growth, income starting to rise and poverty starting to fall. In that sense, the report is a triple disappointment."

The White House said the reports were old news, reflecting an economy struggling from three tough years of stock market drops, corporate scandals, wars and unprecedented terrorist attacks. Median incomes are rising slowly in 2004 as the economy picks up speed; jobs have been added in fits and starts.

The Census report showed:

- Income declined among female workers as compared to men, widening the gender gap for the first time since 1999. The median full-time female worker made 75.5 cents for every dollar earned by a man, down from 76.6 cents in 2002. Hispanics and whites also lost income.

- Poverty increased among whites and Asians, but did not significantly change for Hispanics and blacks. The 2003 poverty level for a married couple with two children was $18,660.

- Health insurance rates dropped among almost all major demographic and geographic groups.


©2004 The Olympian