Legislators in several states are considering raising the minimum wage this year, but the issue is controversial. Proponents of raising state minimum wages argue that while the federal rate has remained stagnant—it hasn’t increased since 2009—the costs for housing, food, utilities and health care have continued to climb. This leaves those earning minimum wage with less money to afford the basics, which in turn puts downward pressure on the demand for goods and services. Opponents warn that raising the wage now would have a negative impact on businesses—especially during anemic economic times—and that a minimum wage hike actually hurts those that it intends to help by forcing employers to cut jobs at the low end of the pay scale.

A number of states are considering raising their minimum wages this year and/or tying those wages to an inflationary measure. Proponents of raising state minimum wages argue that while the federal rate has remained stagnant (it hasn’t increased since 2009), the costs for housing, food, utilities and health care have continued to climb, leaving those earning the minimum wage with less money to afford the basics, which in turn puts downward pressure on the demand for goods and services. Opponents warn that raising the wage now would have a negative impact on businesses – especially during anemic economic times – and that a minimum wage hike actually hurts those that it intends to help by forcing employers to cut jobs at the low end of the pay scale.

The Great Recession has had a far-reaching and prolonged impact on poverty rates and income across the country with some places – like Greenwood County, South Carolina – seeing their poverty rates double and median household income drop by nearly $12,000, according to the New York Times. From 2007 to 2010, poverty rates increased in every state except five. The same is true for median household income – all states but five experienced decreases.  In 2010, poverty rates ranged from a low of 6.6 percent in New Hampshire to a high of 22.7 percent in Mississippi.  Check out The State of Poverty 2010 to learn more. 

U.S. Census Bureau figures released this week reveal that poverty levels were on the rise in 2010, with the percentage of Americans living in poverty at its highest point in 17 years.  Poverty rates range from a low of 6.6 percent in New Hampshire to a high of 22.7 percent in Mississippi.  Over the past 10 years the poverty rate increased in all but three states.  

On August 22, 1996, President Bill Clinton signed into law an historic overhaul of the country’s welfare programs. Fifteen years later, during one of the most prolonged economic downturns in U.S. history, some states are actually seeing declines in the number of their citizens accessing TANF - Temporary Assistance for Needy Families - which is the nation’s cash assistance program for poor families with children.

Although childhood poverty rates declined throughout most of the 1990s, they have been on the rise again.  Between 2008 and 2009, child poverty jumped 10 percent – the single biggest year-over-year jump in the data’s history.  And from 2000-2009, rates increased in 38 states.  That means 1 in 5 children now live in poverty.

The number of poor children has been on the rise for the past 10 years, although those increases vary across state and racial and ethnic lines.  Higher childhood poverty rates mean bigger costs to states, including future health and criminal justice expenses.  

Approximately 40 million Americans received monthly food stamp benefits in 2010, up from about 26 million in 2007. Increased unemployment during the recession was a major contributing factor to the growth in the number of Americans depending upon SNAP.