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Poverty Rate Rises To 13.2 Percent, Number Of Uninsured Grows

First Posted: 11/10/09 05:12 AM ET Updated: 05/25/11 03:00 PM ET

Poverty

Income fell, the poverty rate rose and the number of uninsured grew by more than half a million from 2007 to 2008, the government announced Thursday morning.

The poverty rate rose from 12.5 percent in 2007 to 13.2 percent in 2008, the highest it's been in 11 years, according to to the Census Bureau's annual Income, Poverty and Health Insurance Coverage report. In 2008, 39.8 million people were in poverty, up from 37.3 million in 2007.

Real median household income fell 3.6 percent to $50,303 from $52,163, ending three years of growth. The decline is similar to those of the previous two recessions, though it's unknown when the current one will end.

"Today's data reflect what we knew to be true about the final year of the Bush administration: The typical American family lost ground, more Americans fell into poverty and fewer had private health insurance," U.S. Commerce Secretary Gary Locke said in a statement. "The numbers underscore two important points: One, there is an urgent need to pass health insurance reform to drive down costs for hard-pressed American families. And two, the Recovery Act was crucial for preventing a struggling economy from falling into depression."

The number of uninsured rose to 46.3 million from 45.7 million. The uninsured rate, up one-tenth of a percent point to 15.4 percent, did not see a statistically significant change because the overall size of the population grew. Survey respondents who had insurance at any time in 2008 are not reflected in the numbers even if they lost insurance last year.

President Obama said that the number of uninsured is probably even higher than reflected in the new data.

"We know through more up-to-date surveys that since the recession intensified last September, the situation has grown worse," Obama said. "Over the last 12 months, it's estimated that the ranks of the uninsured have swelled by nearly 6 million people. Seventeen thousand men and women every single day. And we know that during this period of time, the number of adults who get their coverage at the workplace has dropped by 8 million people. And I don't have to tell you about all the problems plaguing the health care system and the fact that they don't just affect the uninsured."

WATCH Obama's remarks:


Click here for a PDF of the report.

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Income fell, the poverty rate rose and the number of uninsured grew by more than half a million from 2007 to 2008, the government announced Thursday morning. The poverty rate rose from 12.5 percent i...
Income fell, the poverty rate rose and the number of uninsured grew by more than half a million from 2007 to 2008, the government announced Thursday morning. The poverty rate rose from 12.5 percent i...
 
 
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11:49 AM on 09/11/2009
Every unemployed person is a step closer to a Socialist revolt.
11:25 AM on 09/11/2009
I think these numbers still do not reflect the true number of people at or below poverty level. I think somewhere close to 23% would be a more accurate total. I do not believe everyone is being counted. The 13% is probably based on towns and cities over a certain size.
Hey you guys, go back and do it again and this time include all cities, towns, parishes and wide spots in the road.
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themodernleader
09:57 PM on 09/10/2009
Vcubed. The bailout policy will be seen as the worst policy. Why? Short, intense collapse and cleansing of the capitalistic system would have given our Treasury the chance to bail out crucial ingredients and operations and let the exotic debt be part of the dust bin of failed enterprise and fraud. We could have initiated programs of employment with the government the employer of last resort. Millions on the public dole would, instead be in productive employment in a public enterprise.
Instead, the fraudsters were bailed out personally and the debt still remains. Now we are flat busted and so deep in the hole that only foreign intervention and control can resurrect our economy as a servant, colonial entity of Far Eastern power.
How can President Obama be forgiven for surrounding his Administration with the key players of the Bush corruption and incompetence? Now, we have the Bush banking interest policy accelerating to destroy our democracy and economic power.
10:13 AM on 09/11/2009
The real enemy is corporate America. Big business controls our lawmakers with back door campaign contributions and lobbying. Most Dems and Republicans are the same.
11:27 AM on 09/11/2009
THIS has NOTHING to do with Obama and EVERYTHING to do how our government both state and federal care nothing about Americans and more about lining their pockets on the backs of the little guys. This has been going on LONG before Obama was elected.
07:27 PM on 09/10/2009
Why does this sound like an old story?
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themodernleader
06:20 PM on 09/10/2009
All the relevant data point to precipitious decline of the American Republic. We hired a guy to set the country on a new course of growth and renewal. What did we get? Another apologist for crooked banking.
Obama's chiefs follow the monarchial view that wealth is measured by the number of units of currency. The Chinese follow the capitalistic view that wealth is measured in the number of units produced by ever achieving and performing labor and technological advance.
Our country continues out-of-control trade deficits with accompanying budget deficits. Tthe Chinese continue trade surpluses and loans and exploitation of our remaining manufacturers and agriculture.
What do our leaders do? Divide among themselves for personal and group advantage. The people of our country are being sold down the river for selfishness and greed.
07:25 PM on 09/10/2009
You don't feel we had to dig out of the hole first?
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05:46 PM on 09/10/2009
Eisenhower - "Every gun that is made, every warship launched, every rocket fired, signifies in the final sense a theft from those who hunger and are not fed, those who are cold and are not clothed."
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TAIsabel
Suffer no fools.
05:17 PM on 09/10/2009
Trickle down Economics, thank you Reagan and Greenspan! It will take a generation to clean up your 30 years of destruction.
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bynddrvn5
My micro-bio is unwritten.
05:17 PM on 09/10/2009
Lesson learned, cutting taxes for the mega, mega wealthy while starting several wars at the same time, and putting incompetent political appointees into regulatory jobs is a bad thing.

I think this should be a class for Harvard MBA students.
04:59 PM on 09/10/2009
good articles 4 slow news day: http://www.iamned.com
04:42 PM on 09/10/2009
Glad to see Barry Obama turning this economy around......

Oh wait, more people are out of work, more business are closing everyday, more people below the poverty line, more housing foreclosures, consumer spending down, tax revenues down, more people on food stamps, more people collecting unemployment...........

The stimulus is working!

Hope & Change!
04:54 PM on 09/10/2009
Yeah, I miss Bush. We need more tax cuts for the rich. Cuz if the rich have more money, they'll make more jobs for us poor folk. Did I memorize this right?
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abbyrose86
04:59 PM on 09/10/2009
Gosh, I really dislike this type of disingenuous commentary.

Yes, these things are still happening and will continue for some time. Problems such as our current economic situation take time, lots of time to correct.

It is silly and childish to expect immediate changes and in reality 8 months is less than a twinkle in time in order to affect real change and correct decades of bad management and unsustainable long term policy.

It stinks, that it takes so long and unfortunately REAL people suffer in the interim, BUT reality is that is how life really works. There is no magic bullet to correct a problem of this magnitude quickly.

Please, and I mean this sincerely, stop being so obstructionist. Stop with the rhetoric, it's getting really, really old and annoying to anyone with a scintilla of common sense!
07:12 PM on 09/10/2009
Gosh you're brainwashed..............Will you be living outdoors before you concede that Odisaster doesn't know what he's doing?

My God woman......look around you. Read something other than the Daily Worker published by Obama Distribution Inc.

Sheez..
04:37 PM on 09/10/2009
but Obama said only 30 million last night ,,,,,, maybe Wilson was right after all
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HUFFPOST SUPER USER
abbyrose86
04:46 PM on 09/10/2009
Actually that is not what he said last night. Don't take things out of context, it is easily refuted.

The actual text where he uses that number is:

" We are the only democracy -- the only advanced democracy on Earth -- the only wealthy nation -- that allows such hardship for millions of its people. There are now more than 30 million American citizens who cannot get coverage. In just a two-year period, one in every three Americans goes without health care coverage at some point. And every day, 14,000 Americans lose their coverage. In other words, it can happen to anyone."

See the number he referenced was 30 million who cannot GET coverage, not 30 million WITHOUT coverage.

Gee whiz!
04:56 PM on 09/10/2009
I think it's sad that even the president doesn't know we are a REPUBLIC.
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PaxEterna
04:27 PM on 09/10/2009
What I don't understand is the President extolling the growing numbers of uninsured and underinsured out of one side of his mouth while saying the solution is to mandate that everyone go buy insurance out of the other.

This is simply ridiculous. It's like asking poor people to go open a savings account in a bank (to keep the banks in business) when they have no savings to speak of.

What he ought to be saying is that the world of for profit insurance off of sick people has got to change. These insurance companies ought to be mandated to morph into not for profits or find another line of work.

In the meantime, American taxpayer dollars ought to be put to work to provide HEALTH CARE - not health insurance - to every citizen, which is what they deserve for their hard earned dollars.

The trigger (4 more years) ought to be the end of the for profit insurance industry, not a moment in time when we might have the courage to do some small thing for the people.
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HUFFPOST SUPER USER
abbyrose86
04:52 PM on 09/10/2009
While I don't love the plan, like you, there are parts I'm not crazy about. However, as a reasonable intelligent adult, I realize compromise is necessary and required; some things can be fixed later, However, it's a good start. You have to walk before you can run.

Those who CANNOT afford it, will receive subsidies in the form of tax credits. As for the very poor I took it that nothing will change and they will remain on medicaid as nothing has been said about abolishing that program with reform.

SEE BELOW EXCERPT from the speech:

"Now, for those individuals and small businesses who still can't afford the lower-priced insurance available in the exchange, we'll provide tax credits, the size of which will be based on your need. And all insurance companies that want access to this new marketplace will have to abide by the consumer protections I already mentioned. This exchange will take effect in four years, which will give us time to do it right. In the meantime, for those Americans who can't get insurance today because they have preexisting medical conditions, we will immediately offer low-cost coverage that will protect you against financial ruin if you become seriously ill. (Applause.) This was a good idea when Senator John McCain proposed it in the campaign, it's a good idea now, and we should all embrace it. (Applause.)
11:47 AM on 09/12/2009
We need UNIVERSAL HEALTH CARE -- Medicare for all.

Why? Here’s a good explanation:
http://healthcare.kucinich.us/petition/health_care_for_all_leaflet.pdf

Please support H.R. 676
http://healthcare.kucinich.us/petition/nhi_bill_final1.pdf

If you agree here’s a link to the petition to download, print and circulate
http://healthcare.kucinich.us/petition/health_care_for_all_petition.pdf

or

sign the online petition
http://healthcare.kucinich.us/petition/

Not sure if you should? Watch this:
http://forum.kucinich.us/index.php?topic=29.msg9194#msg9194

or read the transcript
http://www.msnbc.msn.com/id/32493718/ns/msnbc_tv-the_ed_show/

We need UNIVERSAL HEALTH CARE -- Medicare for all.
Support health care NOT insurance companies. Stop the insurance company and big pharma bailout!
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breakingpoint
War is a Racket - Smedley Butler
04:07 PM on 09/10/2009
Shame on the United States and Shame on Congress!
03:56 PM on 09/10/2009
The homes in my area go for $500,000, which means, I don't get to live the American fantasy.
03:48 PM on 09/10/2009
I can guarantee you in California it's a H*ll of lot higher then that, I"d say double that ,from what I see .