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Strategist Says Real U.S. Poverty Line Is $140,000, Pointing to a 'Valley of Death' in Benefits

He contends the 1960s food-based threshold misses today’s burdens across housing, childcare, healthcare, transportation.

Green estimated that food comprises just 5%-7% of household spending, but put housing at 35%-45%, childcare at 20%-40%, and healthcare at 15%-25%.
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Overview

  • Michael Green of Simplify Asset Management argues many six-figure households still struggle to cover essentials without assistance.
  • His estimate relies on spending shares with food at 5%–7% versus housing at 35%–45%, childcare at 20%–40%, and healthcare at 15%–25%, drawn from suburban New Jersey costs.
  • He says benefit phaseouts can erase wage gains as incomes rise from about $40,000 to $100,000, a dynamic he dubs the 'Valley of Death.'
  • Independent tools from MIT and the Economic Policy Institute show required family budgets topping $100,000 in some states, underscoring regional cost differences.
  • A Harris Poll reported 64% of six-figure earners see their income as merely enough to stay afloat, with many describing ongoing financial anxiety.