Poverty rate jumped in 2022, children worst hit

Children in poverty in the U.S. more than doubled to 12.4% in 2022, compared to 5.2% in 2021 (when it was considered a record-low), says Census Bureau data released yesterday.

The overall supplemental poverty rate went up from 7.8% in 2021 to 12.4% in 2022—the first increase in more than a decade.

What happened in a year?
The end of pandemic-era stimulus checks and the child tax credit program are among the major reasons. The blame also lies on the rising living costs due to inflation.

The American Rescue Plan Act provided millions of low and middle-income families up to $3,600 per child. These funds helped households pay for school supplies, groceries, rent, food and, in some cases, pending debt.

The Census Bureau says the program lifted 2.1 million children above the poverty line in 2021. But, Congress has not extended the plan. With lesser federal assistance to help low-income families with kids, 5 million+ more children fell into poverty.

Also,
The data further shows that median household income decreased 2.3% last year—to $74,580. 

The fall indicates that the strong wage gains and labor market did little to make lives better; inflation ate into peoples’ earnings.