An estimate on Vermont’s poverty rate in 2012 was around 11% to 12.6%. The average household income was about $53,000, which places Vermont 40th in the country for the lowest rate of poverty. The federal poverty does not show the complete scale of inequalities in income because more often than not certain types of income are not included. Income taxes and tax credits are typically not included as well because they are calculated pre-tax. It is usually easier for people with a higher education to be able to find work, but it has become clear that it is now harder for them financially. Those without a diploma are suffering even more compared to what they were in 2007. The poverty rate for women has also increased a great amount, especially during the Great Recession, but is now starting to decrease at a slow rate (Niles, 2013).
Our current poverty rate stays at a percentage of 12.30%. This includes a 15% poverty rate for children, 6% poverty rate for seniors, and 13.30% of women. The percentage of single parents who are raising children is on their own is at a high of 29%. This shows how many other people may be getting benefits over who really needs them. Single parent families are having a harder time affording needs for their children. They are having to focus on necessities, and are unable to spend extra money on anything else. The amount of people receiving Food Stamps is at 31,000 (Spotlight on Poverty).
The percentage of individuals with a Bachelor’s degree is at 34.90% but if you compare that to the number of these graduates in debt 63%, it doesn’t seem like a good enough percentage. This is just an example of how hard it is on college graduates to receive an income to cover all of their expenses. Should those with a degree receive more than a minimum wage income? This seems to be a waste on those who worked so hard on finishing out school to find a career in something they are passionate about because they are unable to receive what they deserve in salary.
An increasing poverty rate results in a decreasing profit for businesses. Think of it this way, if a family is making minimum wage, their money is going toward necessities and nothing extra. Meaning their income is too low to spend spontaneously, therefore businesses are going out of business with a decreasing customer base, people can't afford to see a movie, buy clothes, or supplies to start an at home project when they have to worry about things like heat, water, and electricity with the small income they have.
How do we solve this problem of poverty? A simple solution is looking at the stem of the problem which is employment and and take home pay. There needs to be more employment opportunities for the community so that we having working families. In order for more opportunities to become available that means businesses need to be opening in VT instead of closing. We need to give these new businesses incentives, tax stipulations that won't cripple them within their first few years of being open. Businesses growth is the first step to stomping out poverty. More business means higher employment rates, which means more employed families, resulting in a healthier more robust job market. With a healthier job market it also introduces competitive wages. As business growth increases poverty will decrease.
Niles, Hilary. (Sept. 23rd, 2013). Latest Poverty Numbers Reveal The Most Challenged Populations. Retrieved fromhttp://vtdigger.org/2013/09/23/latest-poverty-numbers-reveal-challenged-populations/
Woolf, Art. (May 22nd, 2014). Poverty rate tells another story of Vermont’s economy. Retrieved from http://www.burlingtonfreepress.com/story/money/2014/05/22/poverty-rate-tells-another-story-vermonts-economy/9381625/.