California’s Poverty Rate Way Above National Average

Sky high cost of living outweighs government benefits, keeps state's poverty rate nation's highest

A report by the Census Bureau released Thursday shows that over 48 million Americans, around 16%, now live below the poverty line, but the number’s even worse for California, which when cost of living is factored in has a stunning 23.4% in poverty.   

The poverty line last year was $23,283 for a family of four. The Census special report, however, provides numbers for the “supplemental poverty measure,” which takes into account both living costs in an area as well as the specific government benefits people receive. With those two numbers factored in, California’s poverty rate leaps up to almost a quarter of the population. CNN Money reports:

The supplemental poverty line varies between urban and rural America. For example, the poverty level in major metropolitan levels is $30,000 or even higher in some locations because people have to pay more for food, shelter and transportation.

This more detailed look at poverty reveals an even uglier picture in some states.

California's official poverty rate was 16% last year. Under the supplemental measure, its poverty rate is 23.4%. In other words, the high cost of living in California outweighs the government benefits poor Californians receive. Florida, New York and 10 other states saw their poverty rates rise between the official and supplemental measures.

Though the study shows that government benefits are helping some from falling below poverty line—food stamps and tax credits reportedly helping more than 13 million people, while Social Security is helping almost 27 million—American Enterprise Institute's Robert Doar points out that government subsidies only "relieve material hardship," but fail to help people "work more and at higher wages so that they can escape poverty."

Issues