An Uneven growth

In the Latino community, poverty decreased in 2012-13. That is the best news in a worrisome outlook that reflects a slow economic recovery, purchasing power similar to 24 years ago and a growing income gap.

The Census Bureau released its annual report on Tuesday, revealing that the poverty rate in the Hispanic community fell to 3.5%. That also meant a decrease in child poverty. Latino children make up a high percentage of minors nationwide. Therefore, an increase in their family’s income has a major impact on the national child poverty rate. However, the poverty rate for Latinos stands at 27%, compared to 32% for African Americans and 10% for whites.

That is as far as the good news go, because the numbers confirm the feeling that the recovery after the Great Recession of 2008 has been unusually slow compared with previous recoveries.

Middle-class income, for example, increased $4,500 a year in 2012-13. Nevertheless, the amount of money earned today is still 9% below the earnings level in 2000.

At the same time, the wealth gap has been increasing for the middle-high and high class. For example, the 20% poorest earned 3.2% of all annual incomes, the lowest level since 1967. Meanwhile, the 20% of highest earners had 51% and the top 5% wealthiest people in the country had 22% of the total national income.

The economy has slowly recovered since 2008. Many jobs have been created ever since; the lost jobs have been recovered, but those jobs are not as good, pay less and have fewer benefits.

On the other hand, economic policies to emerge from the crisis have benefited the wealthiest.

The result of all this is reflected in Census numbers. These numbers point to the need for changes that help the economy, increasing incomes and political stability, and closing the record wealth gap that exists today.

Raising the minimum wage to take wage-earning workers out of poverty is one of the best tools to speed up the economic cycle and reinforce the middle class, which has been the basis for the stability and growth of American society