The method for calculating the poverty line, adopted in 1965, was simple: three times the cost of groceries. IT was based on a 1955 USDA finding that families spent about 33% of their money on food. But now the average American family spends only 6% or 7% of its budget on groceries. Other things cost more—yet there's been no adjustment.
The method for calculating the poverty line, adopted in 1965, was simple: three times the cost of groceries. IT was based on a 1955 USDA finding that families spent about 33% of their money on food. But now the average American family spends only 6% or 7% of its budget on groceries. Other things cost more—yet there's been no adjustment.