04 November 2011

US: 1 in 15 Americans Now Rank as Poorest Poor

The ranks of America's poorest poor have climbed to a record high -- 1 in 15 people -- spread widely across metropolitan areas as the housing bust pushed many inner-city poor into suburbs and other outlying places and shriveled jobs and income. New census data paint a stark portrait of the nation's haves and have-nots at a time when unemployment remains persistently high. It comes a week before the government releases first-ever economic data that will show more Hispanics, elderly and working-age poor have fallen into poverty. CBS News correspondent Jim Axelrod reports the Midwest is the region with the fastest growing poverty rate, up 79 percent. And Youngstown, Ohio, has the highest concentration of poverty, having been hit hard by the loss of steel jobs. In all, the numbers underscore the breadth and scope by which the downturn has reached further into mainstream America. "There now really is no unaffected group, except maybe the very top income earners," said Robert Moffitt, a professor of economics at Johns Hopkins University. "Recessions are supposed to be temporary, and when it's over, everything returns to where it was before. But the worry now is that the downturn -- which will end eventually -- will have long-lasting effects on families who lose jobs, become worse off and can't recover."

There is nothing temporary about this economic downturn, though there are occasional temporary upward motions. 

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