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The Economic Consequences of Homelessness in The US

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liberals argue that work<strong>in</strong>g poverty can only be solved through <strong>in</strong>creased, not<br />

decreased, government <strong>in</strong>tervention. This government <strong>in</strong>tervention could <strong>in</strong>clude<br />

workplace reforms (such as higher m<strong>in</strong>imum wages, liv<strong>in</strong>g wage laws, job tra<strong>in</strong><strong>in</strong>g<br />

programs, etc.) and an <strong>in</strong>crease <strong>in</strong> government transfers (such as hous<strong>in</strong>g, food,<br />

childcare, and healthcare subsidies).<br />

Absolute<br />

Measur<strong>in</strong>g Work<strong>in</strong>g Poverty<br />

Accord<strong>in</strong>g to the <strong>US</strong> Department <strong>of</strong> Labor, the work<strong>in</strong>g poor "are persons who spent at<br />

least 27 weeks [<strong>in</strong> the past year] <strong>in</strong> the labor force (that is, work<strong>in</strong>g or look<strong>in</strong>g for work),<br />

but whose <strong>in</strong>comes fell below the <strong>of</strong>ficial poverty level." In other words, if someone<br />

spent more than half <strong>of</strong> the past year <strong>in</strong> the labor force without earn<strong>in</strong>g more than the<br />

<strong>of</strong>ficial poverty threshold, the <strong>US</strong> Department <strong>of</strong> Labor would classify them as "work<strong>in</strong>g<br />

poor." (Note: <strong>The</strong> <strong>of</strong>ficial poverty threshold, which is set by the <strong>US</strong> Census Bureau,<br />

varies depend<strong>in</strong>g on the size <strong>of</strong> a family and the age <strong>of</strong> the family members.) <strong>The</strong> <strong>US</strong><br />

Bureau <strong>of</strong> Labor Statistics calculates work<strong>in</strong>g poverty rates for all work<strong>in</strong>g <strong>in</strong>dividuals, all<br />

families with at least one worker, and all "unrelated <strong>in</strong>dividuals." <strong>The</strong> <strong>in</strong>dividual-level<br />

work<strong>in</strong>g poverty rate calculates the percentage <strong>of</strong> all workers whose <strong>in</strong>comes fall below<br />

the poverty threshold. In 2009, the <strong>in</strong>dividual-level work<strong>in</strong>g poverty rate <strong>in</strong> the <strong>US</strong> was<br />

7%, compared to 4.7% <strong>in</strong> 2000. <strong>The</strong> family-level work<strong>in</strong>g poverty rate only <strong>in</strong>cludes<br />

families <strong>of</strong> two or more people who are related by birth, marriage, or adoption.<br />

Accord<strong>in</strong>g to the Bureau <strong>of</strong> Labor Statistics' def<strong>in</strong>ition <strong>of</strong> family-level work<strong>in</strong>g poverty, a<br />

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