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Poverty and the Economy

Poverty is a problem facing people in virtually all countries, both rich and poor. Each country uses different methods to address poverty, including assistance for food, housing, health care, and education.

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The U.S. federal minimum wage is an example of government policy aimed at curbing poverty. In the 1960s and 1970s, one person working a full-time job at the minimum wage was roughly able to keep a family of three out of poverty. Since the 1980s, the minimum wage has not kept up.

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A single-parent working full-time at the minimum wage is unable to keep a family out of poverty.

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Every country has its own measure of poverty, making a comparison of countries and their official poverty rate misleading. For example, Switzerland and China both have an official poverty rate of less than 8%. In China, this means a family of four living on less than $1,500 a year; in Switzerland, it means living on less than $48,000 a year plus having generous health care, education, and retirement benefits.

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The percentage of Americans receiving food stamps fluctuates with the economy. The last recession and slow recovery caused food stamp usage to rise.

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Unlike food stamps of the past, food stamps today work like a debit card.

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