How Many Americans Live on Less Than $2 Per Day?

This month, Stanford University’s Pathways magazine gave new meaning to the phrase “third-world America” when it published an article reporting that, in any given month of 2011, 1.65 million U.S. households with children were living on less than $2 per person, per day—the sort of extreme poverty threshold usually associated with developing nations. According to H. Luke Shaefer of the University of Michigan and Kathryn Edin of Johns Hopkins, the number of families living under that low, low line has grown 159 percent since 1996. This, they argued, may have partly been the result of Bill Clinton’s welfare reforms, which made it harder for many families to receive cash assistance.

“The prevalence of extreme poverty in the United States may shock many,” the pair wrote. But is it really as prevalent as they suggest? A new report from the Brookings Institution argues: maybe not.