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Number of Poor People in America is 3 Million Higher than the Official Count

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Photo Credit: AP/k.vineysThe number of poor people in America is 3 million higher than the official count, encompassing 1 in 6 residents due to out-of-pocket medical costs and work-related expenses, according to a revised census measure released Wednesday.

The new measure is aimed at providing a fuller picture of poverty but does not replace the official government numbers. Put in place two years ago by the Obama administration, it generally is considered more reliable by social scientists because it factors in living expenses as well as the effects of government aid, such as food stamps and tax credits.

Administration officials have declined to say whether the new measure eventually could replace the official poverty formula, which is used to allocate federal dollars to states and localities and to determine eligibility for safety-net programs such as Medicaid.

Congress would have to agree to adopt the new measure, which generally would result in a higher poverty rate from year to year and thus higher government payouts for aid programs.

Based on the revised formula, the number of poor people in 2012 was 49.7 million, or 16 percent. That exceeds the record 46.5 million, or 15 percent, that was officially reported in September.

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Hospital in Zimbabwe Where Desperately Poor Women Are Charged $5 Every Time They Scream During Childbirth

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Photo Credit: AFP/GettyPoor women have been exploited at their most vulnerable time by a hospital that charged them $5 every time they screamed during child birth.

The shocking discovery was made by a U.S. group that campaigns against corruption, as it released its annual Global Corruption Barometer.

At the hospital in Zimbabwe, one of the poorest countries in the world, the fine was said to be for ‘raising a false alarm’, according to Transparency International.

Women who were unable to pay the fine were allegedly kept in the hospital until their families could pay. Interest was also added to the fines, according to the Washington Post.

Many mothers already avoid hospital deliveries in the African nation because of the $50 cost, which is about the third of the average $150 income.

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Obama’s Failures Mount: Ranks of US poor highest in 50 years

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The ranks of America’s poor are on track to climb to levels unseen in nearly half a century, erasing gains from the war on poverty in the 1960s amid a weak economy and fraying government safety net.

Census figures for 2011 will be released this fall in the critical weeks ahead of the November elections.

The Associated Press surveyed more than a dozen economists, think tanks and academics, both nonpartisan and those with known liberal or conservative leanings, and found a broad consensus: The official poverty rate will rise from 15.1 percent in 2010, climbing as high as 15.7 percent. Several predicted a more modest gain, but even a 0.1 percentage point increase would put poverty at the highest level since 1965.

Poverty is spreading at record levels across many groups, from underemployed workers and suburban families to the poorest poor. More discouraged workers are giving up on the job market, leaving them vulnerable as unemployment aid begins to run out. Suburbs are seeing increases in poverty, including in such political battlegrounds as Colorado, Florida and Nevada, where voters are coping with a new norm of living hand to mouth.

“I grew up going to Hawaii every summer. Now I’m here, applying for assistance because it’s hard to make ends meet. It’s very hard to adjust,” said Laura Fritz, 27, of Wheat Ridge, Colo., describing her slide from rich to poor as she filled out aid forms at a county center. Since 2000, large swaths of Jefferson County just outside Denver have seen poverty nearly double.

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Related to the increasing US poverty rate, Paul Wiseman of the Associated Press also reported today that the world is suffering the worst economic slowdown since “the dark days of 2009”:

Six of the 17 countries that use the euro currency are in recession. The U.S. economy is struggling again. And the economic superstars of the developing world – China, India and Brazil – are in no position to come to the rescue. They’re slowing, too.

The lengthening shadow over the world’s economy illustrates one of the consequences of globalization: There’s nowhere to hide.

Economies around the world have never been so tightly linked – which means that as one region weakens, others do, too. That’s why Europe’s slowdown is hurting factories in China. And why those Chinese factories are buying less iron ore from Brazil.

As a result of this global economic slowdown, the International Monetary Fund has reduced its forecast for world growth this year to 3.5 percent, the slowest since a 0.6 percent drop in 2009. Some economists predict the global economy will grow a full percentage point less.

For now, few foresee another global recession. Central banks in China, Britain, Brazil, South Korea and Europe have cut interest rates in the past month to try to jolt growth. European leaders have begun to focus more on promoting growth, not just shrinking debt and cutting budgets.

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