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September 13, 2011

The Cost of InactionThe latest figures from the Census Bureau show the devastating cost of the recession and why putting

Americans back to work must be Washingtons top priority.

The bureau reported on Tuesdaythat the number of people living in poverty swelled by 2.6 million between

2009 and 2010 to 46.2 million. That is a shocking 15.1 percent of the population the highest share since

1993.

The middle class is also hurting. Last year, the income of the typical American household fell 2.3 percent to$49,445 its third consecutive annual decline capping a lost decade of stagnating earnings. Median

household income hit its lowest level since 1996 $3,800 a year less than its peak in 1999.

The poverty numbers are even bleaker for minorities. According to the bureau, 26.6 percent of Hispanic

households and 27.4 percent of black households lived below the poverty line last year, compared with 13

percent for white households. Almost a third of families led by a single mother were below the poverty line,

while 22 percent of children subsisted in poverty.

Poverty levels are even worse by historical standards. The government considers a family of four to be poor

if it earned less than $22,314 in 2010 about 30 percent of the median income. The original poverty line,

introduced in the 1960s, was almost 50 percent of median incomes. Using that formula, 22 percent of

Americans are now poor, about the same share as a half-century ago.

These numbers should jolt Washington into addressing the real economic crisis. The deficit must be

addressed over time. But right now the problem is too few jobs, not too much government spending.

Indeed, government safety-net programs so often sneered at by Republicans are all that is keeping

millions from falling into complete despair. Food stamps helped feed 40 million families in 2010, 50

percent more than in 2007. Slashing such spending now will only put more people out of work and drive

more families below the poverty line.

It took too long, but President Obama is now pushing back. His new proposals to extend unemployment

insurance benefits for millions of people, invest in public infrastructure and provide incentives for

employers to increase their payrolls should add jobs and help the jobless make ends meet. Congressional

Republicans, predictably, are complaining about the cost and about raising taxes on the wealthy to pay for

it.

With 14 million Americans out of work and 46 million living in poverty, the real human cost of moreobstruction and inaction is undeniable and inexcusable.

Page 1 of 2Fixing the Economy - Cost of Inaction - NYTimes.com

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