Don't forget that we have more than 10 million working poor here in the US for example
10 million working poor is a very small number. This depends what your definition of 'working poor' is. To me, it would be perhaps a full time McDonald's worker or other minimum wage employee. According to Huffington Post - there are 45 million Americans at or under the 'poverty level.' However, not all of them are working. To be considered in poverty - a person must make $11.5k a year or a household of 4 make $23.5k.
If a person works full time at a minimum wage job, it would be impossible for him to be in poverty - and here's why. There are 2080 work hours in a year. At a minimum wage of $7.50 - that comes out to $15,600 a year - still a very low wage but over $4,000 above the poverty line. Once you add all the government benefits a person who makes only $7.50 an hour would qualify for like public assistance, food stamps, section 8, etc. this would greatly increase his or her income.
According to CNBC, in 2014 the average american made $44.5k a year BUT 67% of wage earners made at or less than that. The median income - meaning the middle number - was actually $28.851. That's less than $14 an hour. However, that's still more than double what poverty level would be for an individual. So if a wage earner makes $14 an hour and is the sole earner in a family of 4 - they are not considered to be in 'poverty' technically. Also, they would qualify for tons of government programs since they are a family and would actually live a very normal middle class existence as their rent, food, health care, etc. would be paid for. It's very little money but doesn't quite qualify as poverty and with all the government programs it would actually be a decent lifestyle.
According to the 2014 US Census 'Income and Poverty in the United States: 2014' report, there were 46.7 million people in poverty in the US. According to this same report, 20% of US households earn an income of under $21.4k a year.
census.gov/content/dam/Census/library/publications/2015/demo/p60-252.pdf
For the fourth consecutive year, overall poverty levels were not statistically different - meaning there was hardly a difference in the total amount of people in poverty in the US despite all of the aid, assistance, etc. However, this report does that there there was a
statistical increase in poverty among people who had at least a bachelor's degree, people aged 18 to 64 with a disability, and married couple families. That means that more educated people and more families slipped into poverty.
However,
when the US Census considers income it does not only take into account wages earned by employment. By income, they consider 15 different things and then add them up to arrive at a total annual income. These 15 things include things like alimony, social security, unemployment, public assistance, child support, interest, financial assistance outside of the household, veteran's payments, disability, pensions or retirement, etc. So a person could be not working at all, collecting welfare at $900 a month or whatever, with rent paid for, but still be qualified as a person in poverty but not a 'working poor' since they are not working.
In the same survey - on page 16 it says - In 2014, 6.9 percent of workers aged 18 to 64 were in poverty.
The poverty rate for those who worked full time,
year round was 3.0 percent, while the poverty rate for those working less than full time, year round was 15.9 percent.So what's the best way to get out of poverty - according to the US Census - WORKING!!... what a novel idea... if you work, you won't be in poverty as only 3% of full time year round workers were in poverty whereas the poverty level is 5x higher for people who work less than full...
One would conclude by these various statistics that the majority of the 20% of US households earning under $21.4k a year aren't actually making that income through wages but rather welfare, disability, government programs, etc.