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Debate Over $140,000 ‘Poverty Line’ Refocuses Attention on Outdated Metrics

Experts dismiss the $140,000 figure, urging modern poverty measures that reflect real costs.

Overview

  • Michael W. Green’s viral Substack claim that a family of four needs roughly $140,000 drew wide attention, as economists faulted his use of average spending and high-cost Essex County data and pointed instead to documented benefit cliffs that complicate simple thresholds.
  • The official poverty line still relies on a 1960s formula built around food costs, even though today’s budgets are driven far more by housing, health care, and childcare.
  • The Census Bureau’s Supplemental Poverty Measure, which counts taxes, noncash benefits, and local housing costs, places the poverty rate near 12.9% compared with 10.6% under the official metric.
  • Living‑wage calculators underscore regional and household variation, with MIT’s tool estimating that a basic budget in Jackson, Mississippi exceeds $80,000 for some family types.
  • Advocates warn that lowball thresholds obscure hardship for working parents, especially Black women, citing rising SPM poverty and surveys showing worsening conditions despite a tight labor market.