You’ve likely heard about the Supplemental Poverty Measure (SPM), a tool designed to offer a more nuanced understanding of poverty in the United States than the traditional poverty line. It’s a laudable goal
FAQs
What is the supplemental poverty measure (SPM)?
The supplemental poverty measure (SPM) is an alternative measure of poverty in the United States that takes into account various factors such as government assistance programs, cost of living, and necessary expenses.
How does the SPM miss the asset grab?
The SPM does not take into account the accumulation of assets or wealth over time, which can be a significant factor in determining a person or family’s overall financial well-being.
What are some examples of assets that the SPM does not consider?
Assets such as savings, investments, property, and other forms of wealth are not factored into the SPM, which can lead to an incomplete picture of a person or family’s economic status.
Why is it important to consider assets in measuring poverty?
Considering assets is important because it provides a more comprehensive understanding of a person or family’s financial stability and ability to weather economic hardships.
Are there any proposed changes to the SPM to address the asset grab issue?
There have been discussions about potential changes to the SPM to include a more comprehensive assessment of assets and wealth, but as of now, the measure still does not fully capture the asset grab phenomenon.