Poverty Increased in 2023 as Prices Rose and Pandemic Aid Programs Expired

Published On Sep 10, 2024, 3:41 PM

The U.S. poverty rate has increased to 12.9% in 2023, up from 12.4% in 2022, despite median household incomes rising to $80,610. This increase in poverty is attributed to inflation and the end of pandemic relief programs. While incomes improved for many, especially low-wage households, the expiration of government aid led to higher hardships, as seen in the demand for food banks. Analysts emphasize the need for economic strategies and investment in safety net programs to combat rising poverty levels.

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Stock Forecasts

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Negative

The rise in poverty rates despite improved income levels suggests potential negative trends for consumer spending and general economic health. Companies that rely heavily on consumer spending, especially in discretionary sectors, could face pressure as more consumers turn to basic necessities and limit spending on non-essential goods.

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Positive

The increased need for food assistance may lead to greater demand for companies involved in food distribution and food banks. Corporations focused on social services, particularly those that improve food security and aid to low-income families, may see a positive outlook.

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