In the US over 13% of citizens live below the poverty line. At the same time, however, while 1 in 3 Americans make enough money, they don’t make ends meet. Alice dominates the “American Dream” which is elusive in reality.
In the US over 13% of citizens live below the poverty line. At the same time, however, while 1 in 3 Americans make enough money, they don’t make ends meet. Alice dominates the “American Dream” which is elusive in reality.
ALICEs are a new socioeconomic category in the US that concerns workers, but with small assets and limited income, with the term coming from the initials Asset Limited, Income Constrained, Employed.
It was conceived by the United For ALICE program of the United Way, an international network of more than 1,800 local nonprofit fundraising affiliates. The term describes Americans whose wages exceed the poverty line for a family of four of $31,200, or $15,060 for a single person, while at the same time struggling to pay for basic needs.
Many ALICEs are workers whose wages are usually not enough to cover their bills, meaning they live a meroduli merofai life. Some are forced to sacrifice their rent for the sake of their children’s food or a visit to the doctor.
Today, about 29% of US households are ALICE, while 13% are below the US poverty line, according to United For ALICE calculations using data from the Census Bureau’s American Community Survey and estimates by United Way on how much it takes a family to get by.
Increase in income, but also inflation
The ALICE class has been on the rise across the US over the last decade or so, with the states of Montana and Idaho seeing big jumps. That’s as many Americans’ earnings have risen, but may not have kept pace with soaring inflation and home prices.
It is difficult to gather data on the stress that millions of Americans experience in their daily lives to meet their needs. To qualify for the Supplemental Nutrition Assistance Program (SNAP), for example, families must have an income below about 138% of the Federal Poverty Level, meaning a family of four must have a gross income of less than $39,000.
For Supplemental Security Income, for the disabled, the limit for individuals is usually $23,652 in annual wages. Some state-to-state benefits are often available to individuals and families earning 200% to 250% of the federal poverty level.
United For ALICE found that inflation has hit these households even harder than the average American.
The Consumer Price Index, one of the main indicators of inflation in the US, includes many goods and services that ALICEs don’t buy often, such as eating out, sporting goods or concert tickets. At the same time, for the past 12 years, ALICE has lagged behind in salary increases.
ALICEs are on the rise
Black and Hispanic families are disproportionately impacted, people with disabilities, younger and older households are more likely to be below the ALICE threshold, as are single-parent households with children.
Indeed, many Americans do not necessarily fall into poverty, but jump into the ALICE category. This comes as the share of Americans above the ALICE threshold fell in nearly every state from 2010 to 2021.
The prevalence of ALICE is a key reason why Americans are not optimistic about the economy in their country while it creates stereotypes about the industriousness of Americans.
The only thing that is certain is that the category of ALICEs is not only in the USA, but also in EU member countries.
