As individuals, we tend to live in the moment. We look around at our lives as they are right now and compare them to the people we know. If our friends all have houses and cars, then we come to believe that we have to have those things, too. If we can’t afford them, we label ourselves “poor.”
Psychologically, poverty is a relative thing, but economists like to measure it in more concrete terms. For them, escaping poverty is all about being able to afford the basics in life. It’s not about keeping up with the Joneses.
The following infographic shows some crazy stats for just how far we’ve come in the war against poverty, and how much wealthier we are today than ever in the past. In the 1950s, the rate of people over the age of 64 living in poverty was a whopping 30 percent; now, it’s just 10 percent. Incomes have risen dramatically too. In 1970, the average personal salary was $17,292. Today it is more than $30,176. It has nearly doubled.
Who exactly is responsible for this dramatic improvement in standards of living and well-being is not clear. The likely answer is that it is a combination of government programs and innovations in the private sector, but we don’t know for sure. The story the data do tell is of an economy that has grown strongly and lifted millions of people out of poverty and into work. If you’re interested in the role of government welfare on poverty stats, take a look at the following infographic.
Infographic by Norwich University