Barely Getting By

Reuters features stories of income inequality:

The number of Americans below the federal poverty level - $22,350 a year for a family of four - hit 48 million in 2011, 17 million more than in 1989. Indiana has seen the second-largest increase in poverty of any state in that time, according to a Reuters analysis of Census data. Sixteen percent of the Hoosier State was poor in 2011, up from 11 percent.
The prime reason for the latest surge in the number of poor people has been the weak economy, not a stingy government. Antipoverty spending has actually increased overall.
Nationally, the federal government put a record $506 billion last year into its five major means-tested programs for low-income, able-bodied Americans. Outlays on these programs - food stamps, Medicaid, cash welfare, housing assistance and tax credits - were up more than triple since 1989, adjusted for inflation. The 50 states spend tens of billions more.

If it weren’t for such assistance, the poverty rate would be much worse. Some economists say the rate is somewhat overstated, too, because it doesn’t count non-cash aid such as food vouchers.

The whole series is worth checking out.  The story about how much of the federal spending ends up going to those at the top is pretty interesting.