1 Wall Street Strategist Thinks the Poverty Line for U.S. Families Is Woefully Out of Date. You Won't Believe How High He Thinks it Should Be.

Many people are likely unaware that the formula to determine the national poverty line was actually established in 1963. Mollie Orshansky, an economist at the Social Security Administration, developed the formula, which is three times the U.S. Department of Agriculture's (USDA) Thrifty Food Plan. The White House eventually adopted the formula, and it has remained in place ever since.Today, this formula translates to a poverty line of slightly over $32,000 per year for a family of four. One doesn't need to be an economist to see that number and think it sounds low, considering the high cost of living in America today.Recently, a Wall Street strategist conducted an analysis of why Orshanky's formula is no longer applicable, and what he thinks the new formula for the poverty line should be. The number may surprise you.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool