US in denial as poverty rises

Ed Vulliamy of the Observer contributes this excellent article on the juxtaposition of privilege and poverty in Yale's hometown. "New Haven is a metaphor for the America which on Tuesday elects its Senate and House of Representatives," he writes. "It is the country's fourth poorest city, where the ghetto laps at the walls of a university worth $11 billion (£7bn) in tax-exempt endowments, educating America's next generation of rulers. A sign at the freeway turn-off advertises New Haven as the birthplace of President George Bush."

Here's the way the rest of the country looks:

Statistics released last month by the government census bureau show that for the first time in 10 years the number of people caught in the poverty trap has suddenly increased. Unemployment is up from 4.2 per cent in 2000 to 5.7 per cent last year. While the middle class shrinks, the numbers living below the official poverty line of $18,104 a year for a family of four has shot up to 33 million - from 11.3 to 11.7 per cent. That's the first increase since 1992.

While President Bush's windfall tax breaks to the super-rich breezed through Congress (with Democratic help), the proposed rise in the minimum wage is frozen.

The proportion of children without health cover has increased from 63.8 per cent to 67.1 per cent. The poverty rate for children in the US is worse than in 19 'rich' countries, according to a study by the University of Michigan.

Income statistics showed the first significant decline in average income among blacks in two decades; the white average also fell, and only Hispanics maintained their level.

Statisticians are struck by differences between this dive and the usual downward turns that accompany recessions. 'The poor are trailing further behind than in the past,' says Robert Greenstein of the Centre on Budget and Policy Priorities in Washington. 'The increase in poverty is likely to be larger in 2002.'...

· One in 11 families, one in nine Americans, and one in six children are officially poor.

· The most affluent fifth of the population received half of all household income last year. The poorest fifth got 3.5 per cent.

· The official poverty line is an income of $18,104 pa (£11,570) for a family of four. A single parent of two working full-time for a minimum wage would make $10,712 (£6,846).

· 40 per cent of homeless men are veterans.

· Up to a fifth of America's food, worth $31bn, goes to waste each year, with 130lb of food per person ending up in landfills.