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Friday, August 27, 2004

U.S. poverty rate up in '03, census reports

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The nation's poverty rate rose by almost a half percentage point in 2003 over 2002, the U.S. Census Bureau reported yesterday, prompting Democrats to dismiss President Bush's claim of an economic recovery.

In 2003, the poverty rate was 12.5 percent, or 35.9 million people, up from 12.1 percent, or 34.6 million people in 2002.

The median household income -- $43,318 -- remained unchanged during the same period, according to "Income, Poverty and Health Insurance Coverage in the United States: 2003."

Sen. Edward M. Kennedy, Massachusetts Democrat, said the new data debunk Mr. Bush's statements that the "economy has turned the corner." He said the report is "new evidence" that the president's economic policy "continues to fail millions of our citizens."

But Robert Rector, a senior fellow with the Heritage Foundation who specializes in economic issues, countered, "It's important to recognize that the census poverty figures ... are one year old. They cover 2003, not the current year.

"Given the current economic conditions, it is extremely likely that [the poverty rate] fell during 2004, although the official figures will not be available for the next 12 months."

Locally, the poverty rate declined slightly in Washington, although the poverty rate in the District remained the nation's sixth-highest at about one in six persons, declining from 17.6 percent in 2001-02 to 16.9 percent in 2002-03.

"The 2000 census ranked us as number 2, so it's a jump," said Lynn French, senior policy adviser to the D.C. deputy mayor for children, youths, families and elders. "There has been an improvement ... [but] we still have a long way to go."

The five states with higher poverty rates in 2002-03 than the District are Arkansas (18.8 percent), Louisiana (17.2 percent), Mississippi (17.2 percent), New Mexico (18.0 percent) and West Virginia (17.1 percent).

Ms. French said the poverty data should be viewed in the context of the District's unique status.

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