How Poor Is Kentucky?
- Michael Paul
Of the year 2020, around 16.6 percent of the population in Kentucky was considered to be living below the poverty level. This takes into consideration individuals or families whose combined income in the preceding 12 months was lower than the federal poverty line established by the United States.
Is Kentucky considered a poor state?
In the year 2020, the rate of poverty in the United States was 11.4%, as reported by the United States Census Bureau. After five consecutive years of decreases, we have now seen a rise in the number of people living in poverty. The following states and territories have the greatest poverty rates in the US as a proportion of the total population: Mississippi, Louisiana, New Mexico, Kentucky, Arkansas, West Virginia, Alabama, South Carolina, and Georgia.
Why is the poverty rate so high in Kentucky?
| September 14, 2021 The publication of new economic statistics today demonstrates that the economic loss and misery caused by COVID-19, especially variations that are presently devastating the state, are not even close to being over for the towns of Kentucky.
- But safety net programs have had a very good impact, and there is a strong need to prolong and expand these investments by getting Congress to approve the groundbreaking Build Back Better plan that is currently before them.
- The new national data from the Current Population Survey of the United States Census Bureau shows that the median household income dropped by 2.9% in the year 2020 as a direct result of the COVID-19 recession, which was one of the most severe and unequal recessions in the history of the United States.
However, in spite of the historic economic crisis, federal aid prevented an increased number of individuals from slipping into poverty. As a result, the Supplemental Poverty Measure (SPM) rate decreased to 9.1% in 2020, which was 2.6 percentage points lower than in 2019.
The official poverty measure is based on monetary resources, while the Supplemental Poverty Measure (SPM) takes into account both monetary and non-monetary forms of economic support, in addition to obligatory expenditures like taxes and medical bills. The percentage of people in the United States who were living below the poverty line in 2020, as measured by the government’s official standard, was 11.4%, which was an increase of one percentage point from 2019.
The percentage of uninsured Americans in the United States in 2020 was 8.6%, which was statistically the same as the rate in 2018. This was the expected result of the significant and historic relief efforts undertaken by the federal government, as well as the necessary increase in the number of people enrolled in Medicaid.
The critical part that unemployment insurance, nutrition assistance, Medicaid coverage, and paid sick leave played in mitigating some of the most extreme harms caused by the health and economic crisis lies at the heart of the picture that the Census paints of poverty, income, and health coverage in the year 2020.
All of this help in relation to the pandemic was made possible because to the Families First Coronavirus Response Act, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, as well as several additional federal initiatives that were highly needed.
- This year, statistics on poverty rates and income levels at the state level are not available from the American Community Survey owing to disruptions caused by COVID in the gathering of said data.
- Nevertheless, additional data that is now available portrays a persuasive picture of the effectiveness of the government assistance efforts that have been made in Kentucky: Without 11 anti-poverty initiatives, a recent study conducted by the Urban Institute indicated that the number of Kentuckians living in poverty would increase by one in six during the current year.
The most recent findings from the Household Pulse Survey (HPS) indicate that the increased Child Tax Credit payments that began in the middle of July helped lower the number of households that were having difficulty affording food by around a third. Food insecurity did not dramatically worsen in 2020, according to data that was issued only last week by the United States Department of Agriculture (USDA).
This is despite the fact that the pandemic caused more misery than in previous years. According to Jessica Klein, a Policy Associate at the Kentucky Center for Economic Policy, “Federal help has had a tremendous influence on the ability of Kentuckians to withstand the COVID epidemic and economic crisis.” “By putting money in the pockets of families so that they can pay for things like groceries, rent, health care, utilities, school supplies, and more, these programs have prevented even worse levels of hunger, homelessness, and hardship, and they have also strengthened our economy for a faster recovery,” However, Kentuckians are not yet completely in the know.
More than one in four persons in the state of Kentucky still report having trouble managing their typical home costs. In addition, action on the part of the federal government is required in order to address the long-standing economic difficulties and inequality that existed prior to the passage of COVID-19.
- The state of Kentucky has greater rates of poverty and food insecurity than other states, as well as a low median family income and economic inequities based on race, gender, location, and other factors.
- These problems are the result of structural impediments.
- The assistance that was provided by ARPA and other relief packages, including as child tax credits, unemployment insurance, and increases in EBT benefits for school children, was required; nonetheless, it was not sufficient to meet the requirements.
It won’t prevent the gentrification that’s going to cost me my rental property, and I wasn’t eligible for PPP loans, so it won’t help me out either “said Jefferson County resident Cassia Herron, who works as an independent contractor and is a mother of two.
- We are appealing to Congress to make further investments so that more people in the United States have access to the resources necessary to lead fulfilling lives.
- If we are starving and have nowhere to live, we are unable to give.” With the next phase of recovery legislation presently under discussion in Congress, legislators now have the chance to fundamentally improve the lives of Kentuckians and establish an economy that is fairer and more equal.
The final bill should include provisions to improve the ineffective unemployment insurance system in the United States, make permanent the full child tax credit for families with low or no earnings, invest in housing that is affordable, and reduce the number of families that struggle to put food on the table, among other provisions.
How much of Kentucky is poor?
|Income & Poverty|
|Median household income (in 2020 dollars), 2016-2020||$52,238|
|Per capita income in past 12 months (in 2020 dollars), 2016-2020||$29,123|
|Persons in poverty, percent|| 16.5%|
How poor is Kentucky compared to other states?
The following are the reasons why Kentucky’s economy ranks 42nd in the United States. Images courtesy of Getty Images/iStockphoto Recently, Kentucky fell to the 42nd spot on the list of states with the weakest economies in the United States. The ranking of the best and worst state economies for 2022 by WalletHub took into account a total of 28 economic variables, such as growth in gross domestic product, unemployment and underemployment rates, median household income adjusted for cost of living, entrepreneurial activity, and more.
With a position of 28th in terms of economic activity, Kentucky’s performance was just somewhat worse than the national average. This indicator took into account a number of different elements, including the proportion of rapidly expanding businesses, the volume of new business ventures, and exports per capita.
Despite this, the commonwealth ranked 37th in terms of economic health and 46th in terms of innovative potential. Neither of these rankings is very impressive. Even though Kentucky had a performance that was below average in several areas, it nevertheless managed to finish in seventh position for exports per capita, with a total export value of $6,618.
The growth of ratio between full-time and part-time work was another area in which WalletHub rated Kentucky above average. With an increase of 0.65%, the commonwealth was placed in 15th position. Some of the areas in which Kentucky performed the poorest were in unfunded public pension plans per capita, where it ranked 40th, and in the percentage of the population that lives in poverty, where it ranked 47th.
Other categories in which the commonwealth lagged behind were fiscal health, construction permit activity, the proportion of jobs in scientific, technological, engineering, and mathematical fields, and the proportion of employees in high-tech businesses.
- In terms of the overall health of the economy, WalletHub ranked Kentucky at 36.03 out of a possible 100 points, with 100 being the best possible result.
- West Virginia received the lowest score possible, a 26.1 out of 50.
- According to WalletHub, the data included in the ranking came from a number of different agencies, including the United States Census Bureau, the Bureau of Labor Statistics, the Bureau of Economic Analysis, Deloitte, the United Health Foundation, and the American Legislative Exchange Council.
According to WalletHub, the following are the top 25 state economies for the year 2022: Washington Utah California Massachusetts State of New Hampshire Colorado North Carolina (US state) Georgia District of Columbia State of Oregon Tennessee Texas Idaho Florida Michigan Maryland Arizona Montana Minnesota Virginia The Big Apple Indiana The state of New Jersey Iowa and Connecticut both.
- The following is a breakdown of how each state performed: Do you have a question for our team of service journalists about the economy in the state of Kentucky? We are interested in receiving your feedback.
- You may send an email to [email protected] or fill out our Know Your Kentucky form.
- This article was first published at 10:41 in the morning on July 5, 2022.
Meredith Howard is currently employed for the Belleville News-Democrat as a service journalist. She holds a degree in journalism from Baylor University and has worked as a freelance journalist for the Illinois Times and the Pulitzer Center for Crisis Reporting in the past.
What’s the poorest state in USA?
In conclusion, in the year 2020, the number of people living in the United States who were poor was higher than thirty-seven million.17.9 million of these people had incomes that were less than half the federal poverty level, which is defined as $13,123 for a family of four.
In the United States, various racial and ethnic minority groups have a disproportionately higher incidence of poverty. The rate of poverty among African Americans in the United States is 19.5%, which is more than twice as high as the rate of 8.2% that is experienced by the White population. The percentage of Hispanics living in poverty is 17%, whereas the percentage of Native Americans living in poverty is 23%.
People with disabilities have the highest rates of poverty in the country, with 25% falling below the poverty line. This is the highest rate of any population in the country. The states that have the largest rates of poverty also have lower levels of educational attainment, poorer health outcomes, and shorter life expectancies than the states that have the highest levels of wealth.
It should not come as a surprise that the states with the highest poverty rates also tend to have the lowest rankings in quality of life indicators and are frequently named among the worst places in which to reside. These states require higher investments in education, measures to combat economic inequality, and extra safety nets, such as unemployment insurance, in order to improve the outlook for their citizens.
The following is a list of the 10 states with the lowest median income for households:
- Mississippi – $65,156
- West Virginia – $65,332
- Arkansas – $69,357
- New Mexico, with a total of $70,241
- Alabama – $71,964
- Kentucky – $72,318
- Louisiana – $73,759
- Oklahoma – $74,195
- $76,390 for the state of South Carolina
- Montana – $76,834
|State||Mean Household Income|
Is Kentucky rich or poor?
With a per capita income of $26,779, Kentucky ranks forty-first among the states in the United States of America in terms of economic prosperity (2017).
How much of Kentucky is on welfare?
Participation in federal initiatives
|Adults and children receiving welfare (TANF):||30,387|
|Children receiving food stamps (SNAP):||239,000|
|Families receiving child care subsidies:||11,300|
|Households receiving federal rental assistance:||85,000|
How much do you need to live comfortably in Kentucky?
- Individual Minimum Subsistence Allowance = $14.16
- Earnings Needed to Support a Family of Four: $20.16
- Minimum Wage: $7.25
A single person in Kentucky may make a living wage of $14.16 per hour, which is equivalent to $29,459 per year. A single person may expect to pay $6,907 per year for housing. To provide for a family of four’s fundamental requirements, an hourly wage of $20.16 and a yearly income of $83,274 are required.