More faced hardship in the United States last year, the Census Bureau said, as inflation and the end of subsidies outweighed higher incomes.According to a report from The New York Times, more Americans faced financial struggles in the United States last year, as the Census Bureau revealed that inflation and the end of subsidies outweighed any gains in income.

The nation’s poverty rate increased in 2023, despite improvements in median household income, which finally reached its pre-pandemic level after adjusting for inflation. This was due to a combination of rising prices and the expiration of pandemic relief programs.

The Census Bureau’s “supplemental” measure of poverty, which takes into account a broader range of benefits and expenses than the official poverty rate, rose to 12.9 percent in 2023, up from 12.4 percent in 2022. This indicates that more Americans were struggling to make ends meet.

The pandemic relief aid, along with a strong labor market that boosted wages for low-income workers, had initially helped to reduce poverty levels in 2021. However, the expiration of these supports, coupled with the sharp increase in prices for essential goods, reversed these gains in 2022.

Olivia Golden, interim executive director of the Center for Law and Social Policy, a progressive advocacy group, emphasized the importance of both economic strategies and investments in core programs and safety nets to combat poverty. She noted that policies have a significant impact on the lives of families and their financial struggles, as seen in the past few years.

The report also revealed that low-wage households, rural households, and men saw significant gains in income, while the gap between male and female earnings increased for the first time since 2003. This may have been due to an increase in the labor force participation of Hispanic women, who typically earn less.

Overall, the data shows that poverty levels rebounded sharply in 2022 and 2023, highlighting the need for continued support and investment in programs to help struggling Americans. 

Source:Read More