Current Events Summary
ECON 220: Macroeconomics
Poverty across America is continuing to increase throughout suburbs faster than anywhere else in the United States. Currently, there are almost 16.4 million suburban residents who reside below the poverty line. The latest Census figures available, in 2011, showed that the poverty line for a family of four was just over $23,000 (Luhby, 2013, para. 3). The number of suburban residents below the poverty line is roughly 3 million more than those residing within inner city neighborhoods. During the 2000s, many low-income families began relocating to suburban neighborhoods, in hopes to remain gainfully employed in the area. As a result of the housing boom, several poor people obtained positions with construction companies in the suburbs and moved from inner cities, to the suburbs. Others were moving to suburban areas to obtain positions (even low-wage) in customer service, retail, and restaurant businesses (Luhby, 2013, para. 6). Once the Great Recession occurred, the suburban poverty dilemma increased, causing construction companies and other businesses to close. Many in poverty were left without jobs and several middle-class families were forced into poverty as well. Some critics believe the suburbs are not suited for the increasing rise of suburban residents in poverty. Most of the $82 billion funding from the government, used to aid those in poverty, is given to cities (Luhby, 2013, para. 7). Therefore, there is a growing concern as to what may happen next.
The increase in suburban poverty can raise many concerns and is of great significance to our economy, if we wish to continue growing. Having poor populations on the rise, at such shocking rates, will only be detrimental to our economy and society as a whole. Although many suburban residents gave up their city homes and relocated for employment, they should have planned the future out a little better and created a more realistic budget for themselves, in...
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