critical thinking questions about poverty

9 Questions You Have Asked About Poverty

Dec 13, 2016

Poverty across the USA is a systematic problem that touches all walks of life, including people in your own community. Consider your thoughts each time you see a homeless person. Have you ever wondered if they are on drugs or why don’t they just get a job?

Poverty is most commonly defined as lacking financial resources. The Federal Poverty Guidelines  is how most public assistance is determined. For a family of four, earning less than $24,000 per year, they are considered 100% below the poverty line. The problem with this definition is that is doesn’t account for things such as lack of reliable transportation, mental and physical health, social capital, and emotional stress.

Here are nine important questions you may have asked about poverty and some insights to get you thinking.

Question #1: Why Does Poverty Still Exist? Unfortunately, the cycle of poverty is nearly impossible to climb out of, especially for those born into it. There are several factors that contribute to why poverty still exists. The economy, cost of living, education, wages, health insurance, housing, transportation, and mental health all play a role. One of the biggest barriers for self sufficiency is what’s known as The Cliff Effect. This is where they lose their assistance faster than they can make up the difference. Check out this great video.

Question #2: Isn’t Poverty a Choice? Living in poverty is often not a choice for many people. The majority of those in poverty are working very hard to get out, especially here in Utah County. Some are born into it (intergenerational poverty) and end up sacrifice schooling and other opportunities to just help their family survive. Others fall into it after an unexpected medical emergency or other unforeseen circumstance (situational poverty). They work hard at often stressful, low paying jobs that barely pay the rent. People with disabilities, single parents, international students, veterans and even maybe your next door neighbor all have their own insurmountable barriers whether visible or not. That’s why everything we do at Community Action is centered around providing the education, resources and support to achieve self-reliance.

Question #3: Is Poverty an Issue In Utah County? Yes, the fact is 14% of Utah County lives in Poverty. This means that there are over 70,000 of our own neighbors and friends struggling to make ends meet, including 22,000 children. We see the faces of young families, single moms, and seniors enter our doors every day. This not only impacts them, but our community as a whole. It impacts our schools, jobs, housing market, healthcare and future generations.

Question #4: Aren’t Most Homeless People Drug Addicts? Granted, the high toll drugs take on people’s lives can often lead to chronic homelessness, not everyone who is homeless has problems with drug abuse. Homelessness in Utah County looks very different that you might imagine. Most of Utah residents struggling with homelessness are what are referred to a vicariously housed. This means they are not necessarily living on the street but 14 days away from being evicted or are doubled up in a home somewhere. They might be facing eviction, living with a friend for a limited amount of time, paying for a motel until they can find affordable housing. While chronic homelessness is an issue in Utah County, precariously housed is the bigger issue. We recommend checking out this study for further understanding.

Question #5: Doesn’t The LDS Church Take Care of Everything? The Church of Jesus Christ of Latter Day Saints does their part to help people in need and they do a really good job. Despite their incredible efforts, there are people who have needs not met by the LDS Church Welfare system. They recognize this and partner with many organization that have similar missions. The LDS Church also refers people to local organization like Community Action Services and Food Bank. It’s a personal decision when it comes to how and when you give. Do your research about the causes you care about and see if you have something to offer.

Question #6: Aren’t People On Welfare Just Lazy? No, in fact they are often some of the hardest working. They are master problem solvers, creative, and can survive in circumstance that many of us could barely function. They are often forced to make difficult decisions such as having heat in the winter or paying rent. It might surprise you to know that an estimated 73 percent of welfare recipients are actually working families that are struggling to make ends.

Question #7: Why Aren’t My Tax Dollars Doing More? The fact of the matter is that it’s complicated. The federal tax that people pay is supposed to fund public services. According to the Center On Budget and Policy Priorities, it’s split between public programs like Social Security, Medicare, defense of our country, international assistance, and other safety net programs that provide assistance to families. It may seem like an endless amount of money, but it’s spread thin between many places. A way that you can take change of the situation is to donate directly to organizations that you feel make a difference.

Question #8: What Does Generational Poverty Mean? Generational poverty is defined as a family living in poverty for two or more generations. The state report on inter-generational poverty shows that nearly 290,000 kids are at risk of a life on welfare if nothing is done. Lieutenant Governor Spencer Cox weighs in on how important this issue is in this article. The sad fact is that for many families getting out of poverty is a full time job. Hopefully with more assistance programs aimed at improving the education of our youth, with more opportunities to go to college, eventually this type of poverty will be eliminated. That’s the goal to end generational poverty. Utah specifically has a five and ten year plan to get rid of inter-generational poverty which you can read in their 20 page plan for a stronger future.

Question #9: How Can I Help? This is probably the absolute best question you can ask! The best thing you can do is do your research and act. Educate yourself on the needs in your own community and find an organization that matches your passion. Go to city council meetings, be informed about the regulations in question, talk to your neighbors, schools, and find out the issues on the minds of those with low-income. At Community Action Services and Food Bank we are always looking for passionate people willing to give through time, in-kind donations or monetary donations. You can visit the site to find out how you can do more to help those in great need.

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Rethinking Poverty

Recent discoveries in brain science shed light on what holds the poor back—and on how to help them get ahead.

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By Elisabeth D. Babcock Fall 2014

Margaret grew up in the Patterson Way Apartments, a notorious drug-infested public housing development in South Boston. By the time she was 16, both her mother and her father had died, and her guardian, an older brother, was selling crack cocaine out of their apartment. Nine years later, he too had died, and another brother had become a drug addict. Only she and one remaining brother missed a similar fate.

“Back then,” Margaret has written in an unpublished memoir, “you would find syringes everywhere in my neighborhood, from the common hallways to the rooftops of our buildings…. That’s when I noticed the deals that the neighbors were making and the constant presence of strangers in [our] hallway…. I remember thinking, ‘How am I going to make this better?’” (Margaret is not her real name.)

In 2009, Margaret enrolled in Career Family Opportunity (CFO), a program offered by Crittenton Women’s Union (CWU) . At that time, she had no education beyond high school and was a 30-year-old unemployed, unmarried mother with a limited work history. For her entire life, she had lived in South Boston public housing—an environment in which she was surrounded by people who, like her, had no idea how to better their lot.

Four years later, Margaret had attained her associate’s degree, had paid off $1,552 in unpaid taxes, and had saved almost $1,000. Today, she is the full-time manager of community learning programs at a local community center. “My job allows me to have a rippling effect on my community,” she writes. “I’m trying my best today to live well and to teach my son to be the best little person who he can be. I’m a productive, inspiring, and helpful member of my community, and I have never been more proud.”

Margaret’s story illustrates the impact that an anti-poverty program can have if it targets the core circumstances that cause poverty to become intractable. In recent years, scientists have discovered that the stresses of poverty often overwhelm the critical-thinking skills that people need to chart and follow a pathway out of their condition. Fortunately, we are also discovering that carefully structured programs like CFO can enable people to improve those skills.

The Wages of Stress

Those who are familiar with the reality of poverty today know that transformations like Margaret’s are rare. The erosion of the public safety net, the increasing prevalence of low-wage employment, and decreases in low-wage earnings have combined to place low-income families under constant pressure as they struggle to work, to care for their families, and to maintain their access to public benefits. Added to these burdens is the fact that most jobs that would improve their circumstances—jobs that pay family-sustaining wages—require a post-secondary education, and for most people in low-income families, the effort to obtain higher education complicates their already very complex lives.

For people like Margaret to succeed in moving their families out of poverty, they must make every decision about how to spend their limited time and money very wisely. The more limited those resources are, the more crucial every decision becomes. But, as we have come to learn, the circumstances of living in poverty often undermine people’s decision-making skills.

According to an emerging body of brain science, the stresses that come with being poor negatively affect the strategic thinking and self-regulation skills that people need in order to break the poverty cycle. These skills, known as executive function (EF) skills, are fundamental to our ability to solve problems, to multitask, to juggle priorities, to control impulses, to delay gratification, and to persist in the pursuit of goals. Researchers at the Center on the Developing Child at Harvard University and elsewhere have shown that living in poverty compromises EF skills in at least two critical ways: First, poverty creates powerful stresses that swamp our thinking and create a “bandwidth tax” that decreases the quality of the decisions we make. And second, the stresses associated with poverty can alter the way the brain develops in children who are subjected to them.

Recent discoveries in brain science demonstrate that stress compromises memory, making it harder for people to remember several things at one time. Stress also makes it harder to maintain mental flexibility, to shift back and forth between potential approaches to solving problems, and to weigh the future implications of current decisions. As a result, many who have been raised in conditions of significant stress—or who are currently undergoing acute stress—struggle to keep track of the multiple problems in their lives, to analyze those problems, to explore options for dealing with them, and to set priorities for how best to move ahead.

Scientists have discovered that the stresses of poverty often overwhelm the critical-thinking skills that people need to chart a pathway out of their condition.

Brain science also shows that stress hijacks our good intentions and increases the likelihood that we will be swept away by our impulses. Even if we manage to develop a good plan, we will find it harder to stick to it if we are under stress or if we have experienced significant stress during childhood.

In sum, getting out of poverty requires people in low-income families to manage very complicated lives, to optimize decision-making, and to persevere in the face of huge odds. Yet recent advances in brain science show that poverty also creates crippling stresses that significantly hamper people’s ability to develop and sustain EF skills. So how can organizations that work with low-income families resolve this vicious Catch-22?

A Single Piece of Paper

Seven years ago, CWU began to build a new framework that enables people to buttress their strategic thinking skills and to follow through on their goals in the face of daily life challenges that would normally throw them off-course. Called the Bridge to Self Sufficiency, or the Bridge for short, this framework is an EF-informed “scaffold” structure that helps participants concurrently attain progress in the five areas that our research has shown to be pivotal to fostering economic mobility: family stability, well-being, education, financial management, and career management.

The Bridge serves as a decision-making and skill-building tool that allows participants to analyze and identify their strengths and weaknesses and then to set intermediate and long-term goals in all five of those areas. They do so using a single piece of paper that allows participants and staff members to see—all at once—a summary of the challenges that participants face, the interconnections between those challenges, and potential remedies. The Bridge scaffold serves as a problem-solving, organizational, and memory-aid tool in much the same way that others might use a written list or a software application to help them track their to-do items. The primary difference is that the Bridge is designed to organize the tasks that are most important for moving out of poverty and to display them visually on a single page.

At CWU, we refer to the process of using the Bridge scaffold—along with a set of reinforcing frameworks—as Mobility Mentoring. We developed the Mobility Mentoring approach to mitigate the specific EF-skill challenges that poverty tends to exacerbate. The aim is to sharpen the clarity of participants’ intentions and to strengthen their personal resolve. Specially trained staff members, called Mobility Mentors, act as coaches who work with participants to help them identify realistic goals and plans. In addition, Mobility Mentors connect participants with the resources they need to achieve those goals.

Through the Mobility Mentoring process, participants use contracts, measurement frameworks, and incentive systems to reinforce the goals that they developed using the Bridge. Mobility Mentors measure the goal attainment of participants in face-to-face meetings that take place at intervals of no more than six months and often (especially during the early stages of the program) more frequently. In this way, staff members create a routinized process by which participants become more adept at analyzing problems, developing options, weighing alternatives, selecting a plan, and adhering to a course of action. That coaching work ensures that over time the Bridge scaffold evolves from an externally prescribed process into an internal set of EF competencies that frees participants from the need for further coaching.

Using tools like the Bridge and Mobility Mentoring, we have discovered, can have real payoffs. In the five years since incorporating those approaches into the South Boston CFO program, we have seen public housing residents who are in the program graduate from community college at more than twice the rate of other community college students in the Boston area. In addition, we have seen members of that population save three times as much on average as the typical member of a low-income American household. Almost one-third of participants in these programs are now in family-sustaining jobs that pay from $45,000 to $50,000 per year. Within one year of introducing Mobility Mentoring into transitional homeless shelters, moreover, the proportion of residents who were regularly working or going to school increased from 45 percent to 80 percent, and those with personal savings of $150 or more went from 0 percent to 43 percent.

Findings from brain science show us that the stresses of poverty can compromise people’s decision-making skills in ways that virtually assure that the odds will be stacked against their efforts to gain upward mobility. Yet those same findings suggest that even in adulthood people can benefit from coaching and other services that improve EF skills. It’s better living through science—and, in our experience, it works.

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Ten Important Questions About Child Poverty and Family Economic Hardship

• Publication Type   Report  
• Post date December, 2009

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What is the Nature of Poverty and Economic Hardship in the United States?

• What does it mean to experience poverty?
• How is poverty measured in the United States?
• Are Americans who experience poverty now better off than a generation ago?
• How accurate are commonly held stereotypes about poverty and economic hardship?

How Serious is the Problem of Economic Hardship for American Families?

• How many children in the U.S. live in families with low incomes?
• Are some children and families at greater risk for economic hardship than others?
• What are the effects of economic hardship on children?

Is it Possible to Reduce Economic Hardship among American Families?

• Why is there so much economic hardship in a country as wealthy as the U.S.?
• Why should Americans care about family economic hardship?
• What can be done to increase economic security for America’s children and families?

1.  What does it mean to experience poverty?

Families and their children experience poverty when they are unable to achieve a minimum, decent standard of living that allows them to participate fully in mainstream society. One component of poverty is material hardship. Although we are all taught that the essentials are food, clothing, and shelter, the reality is that the definition of basic material necessities varies by time and place. In the United States, we all agree that having access to running water, electricity, indoor plumbing, and telephone service are essential to 21st century living even though that would not have been true 50 or 100 years ago.

To achieve a minimum but decent standard of living, families need more than material resources; they also need “human and social capital.” Human and social capital include education, basic life skills, and employment experience, as well as less tangible resources such as social networks and access to civic institutions. These non-material resources provide families with the means to get by, and ultimately, to get ahead. Human and social capital help families improve their earnings potential and accumulate assets, gain access to safe neighborhoods and high-quality services (such as medical care, schooling), and expand their networks and social connections.

The experiences of children and families who face economic hardship are far from uniform. Some families experience hard times for brief spells while a small minority experience chronic poverty. For some, the greatest challenge is inadequate financial resources, whether insufficient income to meet daily expenses or the necessary assets (savings, a home) to get ahead. For others, economic hardship is compounded by social isolation. These differences in the severity and depth of poverty matter, especially when it comes to the effects on children.

2. How is poverty measured in the United States?

The U.S. government measures poverty by a narrow income standard — this measure does not include material hardship (such as living in substandard housing) or debt, nor does it consider financial assets (such as savings or property). Developed more than 40 years ago, the official poverty measure is a specific dollar amount that varies by family size but is the same across the continental U.S..

According to the federal poverty guidelines, the poverty level is $22,050 for a family of four and $18,310 for a family of three (see table). (The poverty guidelines are used to determine eligibility for public programs. A similar but more complicated measure is used for calculating poverty rates.)

The current poverty measure was established in the 1960s and is now widely acknowledged to be outdated. It was based on research indicating that families spent about one-third of their incomes on food — the official poverty level was set by multiplying food costs by three. Since then, the same figures have been updated annually for inflation but have otherwise remained unchanged.

Yet food now comprises only one-seventh of an average family’s expenses, while the costs of housing, child care, health care, and transportation have grown disproportionately. Most analysts agree that today’s poverty thresholds are too low. And although there is no consensus about what constitutes a minimum but decent standard of living in the U.S., research consistently shows that, on average, families need an income of about twice the federal poverty level to meet their most basic needs.

Failure to update the federal poverty level for changes in the cost of living means that people who are considered poor today by the official standard are worse off relative to everyone else than people considered poor when the poverty measure was established. The current federal poverty measure equals about 31 percent of median household income, whereas in the 1960s, the poverty level was nearly 50 percent of the median.

The European Union and most advanced industrialized countries measure poverty quite differently from the U.S. Rather than setting minimum income thresholds below which individuals and families are considered to be poor, other countries measure economic disadvantage relative to the citizenry as a whole, for example, having income below 50 percent of median.

3. Are Americans who experience poverty now better off than a generation ago?

Material deprivation is not as widespread in the United States as it was 30 or 40 years ago. For example, few Americans experience severe or chronic hunger, due in large part to public food and nutrition programs, such as food stamps, school breakfast and lunch programs, and WIC (the Special Supplemental Nutrition Program for Women, Infants, and Children). Over time, Social Security greatly reduced poverty and economic insecurity among the elderly. Increased wealth and technological advances have made it possible for ordinary families to have larger houses, computers, televisions, multiple cars, stereo equipment, air conditioning, and cell phones.

Some people question whether a family that has air conditioning or a DVD player should be considered poor. But in a wealthy nation such as the US, cars, computers, TVs, and other technologies are considered by most to be a normal part of mainstream American life rather than luxuries. Most workers need a car to get to work. TVs and other forms of entertainment link people to mainstream culture. And having a computer with access to the internet is crucial for children to keep up with their peers in school. Even air conditioning does more than provide comfort — in hot weather, it increases children’s concentration in school and improves the health of children, the elderly, and the chronically ill.

Consider as well the devastating effects of Hurricane Katrina. Prior to the hurricane, New Orleans had one of the highest child poverty rates in the country — 38 percent (and this figure would be much higher if it included families with incomes up to twice the official poverty level). One in five households in New Orleans lacked a car, and eight percent had no phone service. The pervasive social and economic isolation increased the loss of life from the hurricane and exacerbated the devastating effects on displaced families and children.

Focusing solely on the material possessions a family has ignores the other types of resources they need to provide a decent life for their children — a home in a safe neighborhood; access to good schools, good jobs and basic services; and less tangible resources such as basic life skills and support networks.

4. How accurate are commonly held stereotypes about poverty?

The most commonly held stereotypes about poverty are false. Family poverty in the U.S. is typically depicted as a static, entrenched condition, characterized by large numbers of children, chronic unemployment, drugs, violence, and family turmoil. But the realities of poverty and economic hardship are very different.

Americans often talk about “poor people” as if they are a distinct group with uniform characteristics and somehow unlike the rest of “us.” In fact, there is great diversity among children and families who experience economic hardship. Research shows that many stereotypes just aren’t accurate: a study of children born between 1970 and 1990 showed that 35 percent experienced poverty at some point during their childhood; only a small minority experienced persistent and chronic poverty. And more than 90 percent of low-income single mothers have only one, two, or three children.

Although most portrayals of poverty in the media and elsewhere reflect the experience of only a few, a significant portion of families in America have experienced economic hardship, even if it is not life-long. Americans need new ways of thinking about poverty that allow us to understand the full range of economic hardship and insecurity in our country. In addition to the millions of families who struggle to make ends meet, millions of others are merely one crisis — a job loss, health emergency, or divorce — away from financial devastation, particularly in this fragile economy. A recent study showed that the majority of American families with children have very little savings to rely on during times of crisis. Recently, more and more families have become vulnerable to economic hardship.

5. How many children in the US live in families with low incomes?

Given that official poverty statistics are deeply flawed, the National Center for Children in Poverty uses “low income” as one measure of economic hardship. Low income is defined as having income below twice the federal poverty level — the amount of income that research suggests is needed on average for families to meet their basic needs. About 41 percent of the nation’s children — nearly 30 million in 2008 — live in families with low incomes, that is, incomes below twice the official poverty level (for 2009, about $44,000 for a family of four).

Although families with incomes between 100 and 200 percent of the poverty level are not officially classified as poor, many face material hardships and financial pressures similar to families with incomes below the poverty level. Missed rent payments, utility shut offs, inadequate access to health care, unstable child care arrangements, and running out of food are not uncommon for such families.

Low-income rates for young children are higher than those for older children — 44 percent of children under age six live in low-income families, compared to 39 percent of children over age six. Parents of younger children tend to be younger and to have less education and work experience than parents of older children, so their earnings are typically lower.

6. Are some children and families at greater risk for economic hardship than others?

Low levels of parental education are a primary risk factor for being low income. Eighty-three percent of children whose parents have less than a high school diploma live in low-income families, and over half of children whose parents have only a high school degree are low income as well. Workers with only a high school degree have seen their wages stagnate or decline in recent decades while the income gap between those who have a college degree and those who do not has doubled. Yet only 27 percent of workers in the U.S. have a college degree.

Single-parent families are at greater risk of economic hardship than two-parent families, largely because the latter have twice the earnings potential. But research indicates that marriage does not guarantee protection from economic insecurity. More than one in four children with married parents lives in a low-income family. In rural and suburban areas, the majority of low-income children have married parents. And among Latinos, more than half of children with married parents are low income. Moreover, most individuals who experience poverty as adults grew up in married-parent households.

Although low-income rates for minority children are considerably higher than those for white children, this is due largely to a higher prevalence of other risk factors, for example, higher rates of single parenthood and lower levels of parental education and earnings. About 61 percent of black, 62 percent of Latino children and 57 percent of American Indian children live in low-income families, compared to about 27 percent of white children and 31 percent of Asian children. At the same time, however, whites comprise the largest group of low-income children: 11 million white children live in families with incomes below twice the federal poverty line.

Having immigrant parents also increases a child’s chances of living in a low-income family. More than 20 percent of this country’s children — about 16 million — have at least one foreign-born parent. Sixty percent of children whose parents are immigrants are low-income, compared to 37 percent of children whose parents were born in the U.S.

7. What are the effects of economic hardship on children?

Economic hardship and other types of deprivation can have profound effects on children’s development and their prospects for the future — and therefore on the nation as a whole. Low family income can impede children’s cognitive development and their ability to learn. It can contribute to behavioral, social, and emotional problems. And it can cause and exacerbate poor child health as well. The children at greatest risk are those who experience economic hardship when they are young and children who experience severe and chronic hardship.

It is not simply the amount of income that matters for children. The instability and unpredictability of low-wage work can lead to fluctuating family incomes. Children whose families are in volatile or deteriorating financial circumstances are more likely to experience negative effects than children whose families are in stable economic situations.

The negative effects on young children living in low income families are troubling in their own right. These effects are also cause for concern because they are associated with difficulties later in life — dropping out of school, poor adolescent and adult health, poor employment outcomes and experiencing poverty as adults. Stable, nurturing, and enriching environments in the early years help create a sturdy foundation for later school achievement, economic productivity, and responsible citizenship.

Parents need financial resources as well as human and social capital (basic life skills, education, social networks) to provide the experiences, resources, and services that are essential for children to thrive and to grow into healthy, productive adults — high-quality health care, adequate housing, stimulating early learning programs, good schools, money for books, and other enriching activities. Parents who face chronic economic hardship are much more likely than their more affluent peers to experience severe stress and depression — both of which are linked to poor social and emotional outcomes for children.

Is it Possible to Reduce Economic Hardship for American Families?

8. why is there so much economic hardship in a country as wealthy as the u.s..

Given its wealth, the U.S. had unusually high rates of child poverty and income inequality, even prior to the current economic downturn. These conditions are not inevitable — they are a function both of the economy and government policy. In the late 1990s, for example, there was a dramatic decline in low-income rates, especially among the least well off families. The economy was strong and federal policy supports for low-wage workers with children — the Earned Income Tax Credit, public health insurance for children, and child care subsidies — were greatly expanded. In the current economic downturn, it is expected that the number of poor children will increase by millions.

Other industrialized nations have lower poverty rates because they seek to prevent  hardship by providing assistance to all families. These supports include “child allowances” (typically cash supplements), child care assistance, health coverage, paid family leave, and other supports that help offset the cost of raising children.

But the U.S. takes a different policy approach. Our nation does little to assist low-income working families unless they hit rock bottom. And then, such families are eligible only for means-tested benefits that tend to be highly stigmatized; most families who need help receive little or none. (One notable exception is the federal Earned Income Tax Credit.)

At the same time, middle- and especially upper-income families receive numerous government benefits that help them maintain and improve their standard of living — benefits that are largely unavailable to lower-income families. These include tax-subsidized benefits provided by employers (such as health insurance and retirement accounts), tax breaks for home owners (such as deductions for mortgage interest and tax exclusions for profits from home sales), and other tax preferences that privilege assets over income. Although most people don’t think of these tax breaks as government “benefits,” they cost the federal treasury nearly three times as much as benefits that go to low- to moderate-income families. In addition, middle- and upper-income families reap the majority of benefits from the child tax credit and the child care and dependent tax credit because neither is fully refundable.

In short, high rates of child poverty and income inequality in the U.S. can be reduced, but effective, widespread, and long-lasting change will require shifts in both national policy and the economy.

9. Why should Americans care about family economic hardship?

In addition to the harmful consequences for children, high rates of economic hardship exact a serious toll on the U.S. economy. Economists estimate that child poverty costs the U.S. $500 billion a year in lost productivity in the labor force and spending on health care and the criminal justice system. Each year, child poverty reduces productivity and economic output by about 1.3 percent of GDP.

The experience of severe or chronic economic hardship limits children’s potential and hinders our nation’s ability to compete in the global economy. American students, on average, rank behind students in other industrialized nations, particularly in their understanding of math and science. Analysts warn that America’s ability to compete globally will be severely hindered if many of our children are not as academically prepared as their peers in other nations.

Long-term economic trends are also troubling as they reflect the gradual but steady growth of economic insecurity among middle-income and working families over the last 30 years. Incomes have increased very modestly for all but the highest earners. Stagnant incomes combined with the high cost of basic necessities have made it difficult for families to save, and many middle- and low-income families alike have taken on crippling amounts of debt just to get by.

Research also indicates that economic inequality in America has been on the rise since the 1970s. Income inequality has reached historic levels — the income share of the top one percent of earners is at its highest level since 1929. Between 1979 and 2006, real after-tax incomes rose by 256 percent for the top one percent of households, compared to 21 percent and 11 percent for households in the middle and bottom fifth (respectively).

Economic mobility—the likelihood of moving from one income group to another—is on the decline in the U.S. Although Americans like to believe that opportunity is equally available to all, some groups find it harder to get ahead than others. Striving African American families have found upward mobility especially difficult to achieve and are far more vulnerable than whites to downward mobility. The wealth gap between blacks and whites — black families have been found to have one-tenth the net worth of white families — is largely responsible.

What all of these trends reveal is that the American Dream is increasingly out of reach for many families. The promise that hard work and determination will be rewarded has become an increasingly empty promise in 21st century America. It is in the best interest of our nation to see that the American Dream, an ideal so fundamental to our collective identity, be restored.

10. What can be done to increase economic security for America’s children and families?

A considerable amount of research has been devoted to this question. We know what families need to succeed economically, what parents need to care for and nurture their children, and what children need to develop into healthy, productive adults. The challenge is to translate this research knowledge into workable policy solutions that are appropriate for the US.

For families to succeed economically, we need an economy that works for all — one that provides workers with sufficient earnings to provide for a family. Specific policy strategies include strengthening the bargaining power of workers, expanding the Earned Income Tax Credit, and increasing the minimum wage and indexing it to inflation. We also need to help workers get the training and education they need to succeed in a changing workforce. Dealing with low wages is necessary but not sufficient. Low- and middle-income families alike need relief from the high costs of health insurance and housing. Further programs that promote asset building among low-income families with children are also important.

As a nation, we also need to make it possible for adults to be both good workers and good parents, which requires greater workplace flexibility and paid time off. Workers need paid sick time, and parents need time off to tend to a sick child or talk to a child’s teacher. Currently, three in four low-wage workers have no paid sick days.

Despite the fact that a child’s earliest years have a profound effect on his or her life trajectory and ultimate ability to succeed, the U.S. remains one of the only industrialized countries that does not provide paid family leave for parents with a new baby. Likewise, child care is largely private in the U.S. — individual parents are left to find individual solutions to a problem faced by all working parents. Low- and middle-income families need more help paying for child care and more assistance in identifying reliable, nurturing care for their children, especially infants and toddlers.

These are only some of the policies needed to reduce economic hardship, strengthen families, and provide a brighter future for today’s — and tomorrow’s — children. With the right leadership, a strong national commitment, and good policy, it’s all possible.

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International Perspectives on Policies, Practices & Pedagogies for Promoting Social Responsibility in Higher Education

ISBN : 978-1-83909-855-0 , eISBN : 978-1-83909-854-3

Publication date: 23 October 2020

This chapter presents a poverty simulation as a critical pedagogical tool that breaks down preconceptions and provides information about real-life challenges experienced by those who are poor. It allows students to develop the critical thinking skills, perspective-taking, and empathy. It provides an opportunity to take social and intellectual risks, and motivates civic engagement for positive social change. As such, this chapter contributes to the volume’s focus on curriculum and pedagogical changes using education to promote social change. Simulation participants attempt to successfully negotiate four 15-minute weeks within families of various sizes and resources. At the conclusion of the simulation, participants take a few minutes to reflect in writing on their experience. Students identify and discuss the social structures that they felt helped to perpetuate their poverty, as well as how micro-level interactions (i.e., with service providers, teachers, police, people in their neighborhood) affected their outcomes. Results show students increased understanding of the social issues contributing to poverty as well as consequences of poverty, and they report an increased desire to take action to affect positive social change in their community. The chapter concludes with thoughts and recommendations on how students from various disciplines could benefit from this poverty simulation.

• Poverty simulation
• Active learning
• Role-playing
• Perspective-taking
• Social class
• Inequalities
• Simulations
• Service learning

Kelty, R. , Angelis, K.D. and Blair, E. (2020), "Poverty Simulation: Promoting Perspective-Taking, Empathy, and Social Action", Sengupta, E. , Blesinger, P. and Mahoney, C. (Ed.) International Perspectives on Policies, Practices & Pedagogies for Promoting Social Responsibility in Higher Education ( Innovations in Higher Education Teaching and Learning, Vol. 32 ), Emerald Publishing Limited, Leeds, pp. 117-132. https://doi.org/10.1108/S2055-364120200000032009

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Critical thinking definition

Critical thinking, as described by Oxford Languages, is the objective analysis and evaluation of an issue in order to form a judgement.

Active and skillful approach, evaluation, assessment, synthesis, and/or evaluation of information obtained from, or made by, observation, knowledge, reflection, acumen or conversation, as a guide to belief and action, requires the critical thinking process, which is why it's often used in education and academics.

Some even may view it as a backbone of modern thought.

However, it's a skill, and skills must be trained and encouraged to be used at its full potential.

People turn up to various approaches in improving their critical thinking, like:

• Developing technical and problem-solving skills
• Engaging in more active listening
• Actively questioning their assumptions and beliefs
• Seeking out more diversity of thought
• Opening up their curiosity in an intellectual way etc.

Is critical thinking useful in writing?

Critical thinking can help in planning your paper and making it more concise, but it's not obvious at first. We carefully pinpointed some the questions you should ask yourself when boosting critical thinking in writing:

• What information should be included?
• Which information resources should the author look to?
• What degree of technical knowledge should the report assume its audience has?
• What is the most effective way to show information?
• How should the report be organized?
• How should it be designed?
• What tone and level of language difficulty should the document have?

Usage of critical thinking comes down not only to the outline of your paper, it also begs the question: How can we use critical thinking solving problems in our writing's topic?

Let's say, you have a Powerpoint on how critical thinking can reduce poverty in the United States. You'll primarily have to define critical thinking for the viewers, as well as use a lot of critical thinking questions and synonyms to get them to be familiar with your methods and start the thinking process behind it.

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Chapter 14. Poverty and Economic Inequality

14.1 Drawing the Poverty Line

Learning objectives.

• Explain economic inequality and how the poverty line is determined
• Analyze the U.S. poverty rate over time, noting its prevalence among different groups of citizens

Comparisons of high and low incomes raise two different issues: economic inequality and poverty . Poverty is measured by the number of people who fall below a certain level of income—called the poverty line —that defines the income needed for a basic standard of living. Income inequality compares the share of the total income (or wealth) in society that is received by different groups; for example, comparing the share of income received by the top 10% to the share of income received by the bottom 10%.

In the United States, the official definition of the poverty line traces back to a single person: Mollie Orshansky . In 1963, Orshansky, who was working for the Social Security Administration, published an article called “Children of the Poor” in a highly useful and dry-as-dust publication called the Social Security Bulletin . Orshansky’s idea was to define a poverty line based on the cost of a healthy diet.

Her previous job had been at the U.S. Department of Agriculture, where she had worked in an agency called the Bureau of Home Economics and Human Nutrition. One task of this bureau had been to calculate how much it would cost to feed a nutritionally adequate diet to a family. Orshansky found that the average family spent one-third of its income on food. She then proposed that the poverty line be the amount needed to buy a nutritionally adequate diet, given the size of the family, multiplied by three.

The current U.S. poverty line is essentially the same as the Orshansky poverty line, although the dollar amounts are adjusted each year to represent the same buying power over time. The U.S. poverty line in 2015 ranged from $11,790 for a single individual to $25,240 for a household of four people.

Figure 1 shows the U.S. poverty rate over time; that is, the percentage of the population below the poverty line in any given year. The poverty rate declined through the 1960s, rose in the early 1980s and early 1990s, but seems to have been slightly lower since the mid-1990s. However, in no year in the last four decades has the poverty rate been less than 11% of the U.S. population—that is, at best about one American in nine is below the poverty line. In recent years, the poverty rate appears to have peaked at 15.9% in 2011 before dropping to 14.5% in 2013. Table 1 compares poverty rates for different groups in 2011. As you will see when we delve further into these numbers, poverty rates are relatively low for whites, for the elderly, for the well-educated, and for male-headed households. Poverty rates for females, Hispanics, and African Americans are much higher than for whites. While Hispanics and African Americans have a higher percentage of individuals living in poverty than others, most people in the United States living below the poverty line are white.

Visit this website for more information on U.S. poverty.

The concept of a poverty line raises many tricky questions. In a vast country like the United States, should there be a national poverty line? After all, according to the Federal Register, the median household income for a family of four was $102,552 in New Jersey and $57,132 in Mississippi in 2013, and prices of some basic goods like housing are quite different between states. The poverty line is based on cash income, which means it does not take into account government programs that provide assistance to the poor in a non-cash form, like Medicaid (health care for low-income individuals and families) and food aid. Also, low-income families can qualify for federal housing assistance. (These and other government aid programs will be discussed in detail later in this chapter.)

Should the poverty line be adjusted to take the value of such programs into account? Many economists and policymakers wonder whether the concept of what poverty means in the twenty-first century should be rethought. The following Clear It Up feature explains the poverty lines set by the World Bank for low-income countries around the world.

How is poverty measured in low-income countries?

The World Bank sets two poverty lines for low-income countries around the world. One poverty line is set at an income of $1.25/day per person; the other is at $2/day. By comparison, the U.S. 2015 poverty line of $20,090 annually for a family of three works out to $18.35 per person per day.

Clearly, many people around the world are far poorer than Americans, as Table 2 shows. China and India both have more than a billion people; Nigeria is the most populous country in Africa; and Egypt is the most populous country in the Middle East. In all four of those countries, in the mid-2000s, a substantial share of the population subsisted on less than $2/day. Indeed, about half the world lives on less than $2.50 a day, and 80 percent of the world lives on less than $10 per day. (Of course, the cost of food, clothing, and shelter in those countries can be very different from those costs in the United States, so the $2 and $2.50 figures may mean greater purchasing power than they would in the United States.)

Any poverty line will be somewhat arbitrary, and it is useful to have a poverty line whose basic definition does not change much over time. If Congress voted every few years to redefine what poverty means, then it would be difficult to compare rates over time. After all, would a lower poverty rate mean that the definition had been changed, or that people were actually better off? Government statisticians at the U.S. Census Bureau have ongoing research programs to address questions like these.

Key Concepts and Summary

Wages are influenced by supply and demand in labor markets, which can lead to very low incomes for some people and very high incomes for others. Poverty and income inequality are not the same thing. Poverty applies to the condition of people who cannot afford the necessities of life. Income inequality refers to the disparity between those with higher and lower incomes. The poverty rate is what percentage of the population lives below the poverty line, which is determined by the amount of income that it takes to purchase the necessities of life. Choosing a poverty line will always be somewhat controversial.

Self-Check Questions

Describe how each of these changes is likely to affect poverty and inequality:

• Incomes rise for low-income and high-income workers, but rise more for the high-income earners.
• Incomes fall for low-income and high-income workers, but fall more for high-income earners.

Review Questions

• How is the poverty rate calculated?
• What is the poverty line?
• What is the difference between poverty and income inequality?

Critical Thinking Questions

• What goods and services would you include in an estimate of the basic necessities for a family of four?
• If a family of three earned $20,000, would they be able to make ends meet given the official poverty threshold?
• In country A, the population is 300 million and 50 million people are living below the poverty line. What is the poverty rate?
• In country B, the population is 900 million and 100 million people are living below the poverty line. What is the poverty rate?

Ebeling, Ashlea. 2014. “IRS Announces 2015 Estate And Gift Tax Limits.” Forbes. Accessed March 16, 2015. http://www.forbes.com/sites/ashleaebeling/2014/10/30/irs-announces-2015-estate-and-gift-tax-limits/.

Federal Register: The Daily Journal of the United States Government. “State Median Income Estimates for a Four-Person Household: Notice of the Federal Fiscal Year (FFY) 2013 State Median Income Estimates for Use Under the Low Income Home Energy Assistance Program (LIHEAP).” Last modified March 15, 2012. https://www.federalregister.gov/articles/2012/03/15/2012-6220/state-median-income-estimates-for-a-four-person-household-notice-of-the-federal-fiscal-year-ffy-2013#t-1.

Luhby, Tami. 2014. “Income is on the rise . . . finally!” Accessed April 10, 2015. http://money.cnn.com/2014/08/20/news/economy/median-income/.

Meyer, Ali. 2015. “56,023,000: Record Number of Women Not in Labor Force.” CNSNews.com. Accessed March 16, 2015. http://cnsnews.com/news/article/ali-meyer/56023000-record-number-women-not-labor-force.

Orshansky, Mollie. “Children of the Poor.” Social Security Bulletin . 26 no. 7 (1963): 3–13. http://www.ssa.gov/policy/docs/ssb/v26n7/v26n7p3.pdf.

The World Bank. “Data: Poverty Headcount Ratio at $1.25 a Day (PPP) (% of Population).” http://data.worldbank.org/indicator/SI.POV.DDAY.

U.S. Department of Commerce: United States Census Bureau. “American FactFinder.” http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml.

U.S. Department of Commerce: United States Census Bureau. “Current Population Survey (CPS): CPS Table Creator.” http://www.census.gov/cps/data/cpstablecreator.html.

U.S. Department of Commerce: United States Census Bureau. “Income: Table F-6. Regions—Families (All Races) by Median and Mean Income.” http://www.census.gov/hhes/www/income/data/historical/families/.

U.S. Department of Commerce: United States Census Bureau. “Poverty: Poverty Thresholds.” Last modified 2012. http://www.census.gov/hhes/www/poverty/data/threshld/.

U.S. Department of Health & Human Services. 2015. “2015 Poverty Guidelines.” Accessed April 10, 2015. http://www.medicaid.gov/medicaid-chip-program-information/by-topics/eligibility/downloads/2015-federal-poverty-level-charts.pdf.

U.S. Department of Health & Human Services. 2015. “Information on Poverty and Income Statistics: A Summary of 2014 Current Population Survey Data.” Accessed April 13, 2015. http://aspe.hhs.gov/hsp/14/povertyandincomeest/ib_poverty2014.pdf.

Answers to Self-Check Questions

• Poverty falls, inequality rises.
• Poverty rises, inequality falls.

Principles of Economics Copyright © 2016 by Rice University is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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Can critical thinking help break the cycle of poverty?

The reality of Los Angeles is as disparate and fractured as the suburban web that comprises it.

At the heart of this sprawling metropolis lies a sobering truth: The number of homeless students is growing, and their working parents are finding it increasingly difficult to secure affordable housing. There were 62,931 homeless students across 80 districts and 270 charter schools in the county — including about 11,500 in LA, according to 2015-2016 data from the Los Angeles County Office of Education.

Crete Academy, near South L.A.’s Leimert Park neighborhood, is changing this trajectory of homelessness by providing L.A.’s kids and families with top notch education and a variety of social services to ease them into the workforce and away from the streets.

Hattie Mitchell, Crete’s founder, believes that “the housing scarcity is not only real in general, it’s very real for families, we want to keep families together as much as we can. To do that we have to provide services not just at the school for the kids, but services that extend beyond the school day to our parents and our families.”

Students affected by homelessness have critical thinking skills but may not have the critical thinking disposition or the habits or mindsets needed to consistently apply critical thinking throughout their life, career, and academics due to the instability that comes with being homeless.

thinkLaw is proud to partner with Crete Academy to address the charter’s mission based on three tenets of mind, body, and soul with a belief that if all three are addressed, a child can succeed regardless of their circumstances. All three tenets are the bedrock of thinkLaw’s mission and what we do on a daily basis. Through a powerful instructional program, thinkLaw is providing Crete students with higher order learning strategies used by lawyers to solve hypothetical and real-life problems; the type of critical thinking and life skills that are paramount to students success at home, in school, and in the workplace. Colin Seale, thinkLaw’s Founder/CEO and Board Chair for the Nevada Partnership for Homeless Youth, is proud to partner with Crete on the “mind” piece of Crete’s powerful “mind, body and soul” framework. He says, “Crete is serving students who most educators never expose to critical thinking instruction. So we are excited to partner with Crete to ensure that this essential 21st-century skill is no longer a luxury good.”

For more information about Crete Academy’s transformative model and how to help, please visit here: https://edsource.org/2017/inspired-by-skid-row-educator-opens-charter-to-help-las-homeless-children-and-families/585872

To learn how your school or organization can adopt thinkLaw’s standards-aligned program that helps educators teach critical thinking to all students, please click  here   to schedule a time to speak with someone on the thinkLaw team, call us now at (702) 318-7512 or join us on our next webinar;  Thinking Like a Lawyer: Powerful Strategies to Teach Critical Thinking to All Students

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85 Critical Thinking Questions to Carefully Examine Any Information

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The ability to think critically will often determine your success in life.

Let’s face it. Every day, we are bombarded by news, social media updates, and an avalanche of information. If you take all of this at face value, it’s easy to be deceived, misled or ripped off.

That’s why it’s important to  develop a mindset that focuses on critical thinking . This is a skill that needs to be developed in the classroom. But it’s also a valuable life skill.

With that in mind, the following post will share 85 critical thinking questions you can use to increase your awareness about different problems by carefully examining available information. 

Let’s get started…

Table of Contents

What Are Critical Thinking Questions?

Critical thinking questions are inquiries that help you think rationally and clearly by understanding the link between different facts or ideas. These questions create a seemingly endless learning process that lets you critique, evaluate, and develop a depth of knowledge about a given subject. Moreover, you get to reinforce your viewpoints or see things in a new way.

We make decisions every day, whether at work or home. Adopting logical, rational, and practical approaches in addressing various issues requiring critical thinking is essential in decision-making. Therefore, before arriving at a decision, always ask yourself relevant questions and carefully analyze the matter’s pros and cons.

Critical Thinking Questions When in an Argument

When you make an argument using a critical thinking approach, you focus on justified claims that are valid and based on evidence. It helps one establish a strong argument.

• Do I disagree with the other person? Might the person I'm arguing with be misinformed on what they are saying?
• Would I be comfortable saying what I am telling him/her if I was in front of a group of people? 
• What would happen if I lose this argument? Is engaging in this argument worth my time and energy? How will I feel if I lose?
• Is there room for ambiguity or misinterpretation? Are we arguing because I didn't make my point explicit? Should I take my time to understand his school of thought?
• Do I need some rest before saying something? Am I arguing because of other reasons other than the issues at hand? Do I need to take some time and cool down?

• Is it more important that I’m right? Am I trying to ask to prove an unnecessary point?
• Is this argument inductive, deductive, or abductive? Is it a weak or strong argument that I need to engage in? Is it compelling or sound? 
• Is my opponent sincere? Given that they are wrong, are they willing to admit that they are wrong? Can they depend on available evidence, wherever it leads?
• Are my opponents only trying to shift their burden to me? What is the best way to prove them wrong without making them feel bad?
• Are the people I'm arguing with only interested in winning, or are they trying to pass some information across and help me discover the truth?

Critical Thinking Questions When Reading a Book 

When you read a book, you probably ask yourself many “why” questions. Why is this a problem? Why did the character say that? Why is this important? The most challenging part of reading a book is assessing the information you are reading. These questions can help.

• If I learn only two things from this book, what will they be? How will they help me? How will I apply them in my daily life?
• What message are the authors trying to pass across? Are they making suggestions or providing evidence for their arguments?
• Given that almost every book is about solving problems, what is the most prevalent issue that the author is trying to solve?
• What is the author’s writing style? What strategy or master plan does the author employ to convey his/her main ideas throughout the book?
• Do I have background information about the book’s topic? If so, how is what the author is saying different from what I already know?
• What didn’t I understand from the book? Should I re-read the book to understand everything the writer is trying to convey?
• Which sections of the book do I love the most, and why? Generally, do I like this book? Should I look for more books that are written by the same author?
• If I had a chance to meet this book’s author, what questions would I ask him/her? What would I tell the writer about the book? Is it a great book worth recommending to your friends and family members?
• Who are the main characters of the book? If there is only one main character, what overarching goal does the character accomplish?
• In what ways did the protagonist change from the start of the book to the end? What caused the changes? Was the protagonist reckless in some ways? Which ways?

Critical Thinking Questions to Spot a Scam

Asking questions when you feel that a fraud or a scam is being presented to you is a good way to stretch your critical thinking muscles. Are you being emailed or messaged by a stranger? Or maybe there are other red flags you are unsure about. If so, ask these questions.

• Does it seem to be too good to be true? Is this stranger pushy or trying to lure me into making a poor decision?
• When trying out online dating: Is my new “friend” professing strong feelings towards me although we’ve only interacted for a few hours?
• Why is a stranger calling me to ask about my Social Security Number (SSN), personal contact information, or bank details while claiming they are from the bank or a phone company? 
• When buying products online, why does the seller ask me to pay for goods using an insecure payment option like Bitcoin or money order?
• Does the email I have received have any spelling or grammatical errors? Is the language used overly formal or informal?
• If I do a quick search about the exact words of the email I received, does Google indicate it's a fraud or scam?
• Why should a stranger manipulate me using obvious questions like “Would you want to be rich or poor?” While they already know the answer?
• Is the email asking me to download an attachment? Or click a link to some insecure website? 
• Is the person trying to make me feel selfish or guilty for not sending them money, whether for a donation or buying a product? 
• Is the stranger portraying a sense of urgency and using pressure tactics? Are they telling me that their family member needs urgent medical attention?

Critical Thinking Questions About Your Life

It can also help to ask yourself a few critical thinking questions about your life. This way, you can gather basic information and uncover solutions to problems you might not have otherwise thought of.

• Where do I wish to be in a few years, probably two, three, or five years? What short-term and long-term goals should I set?
• What have I achieved so far from the time I set my previous goals? What should I be grateful for?
• Do I have any values that guide me in life? If so, what are these values? Am I always true to these values?
• Am I always worried about what people around me think? Can I act independently without the need to meet social expectations?
• What should people say about me at my funeral? Would they talk about how good I made them feel or how rich and flashy I was?
• If I wasn't afraid of anyone or anything, what would I have done? What if I didn't have any fear in me?
• If today was my last day, what extraordinary thing would I do? Can I do it right now?
• What should I do with the things that matter the most to me? 
• What things will make the greatest difference in my future life if I take action now?
• How should I react when I feel unwanted by the people I love the most? Should I tell them?

Critical Thinking Questions for a Debate or Discussion

When you are in the middle of a debate or discussion, you need to know that what you are saying is fact, have evidence to support your claim, and position yourself as an expert in what you are saying. Here are some critical thinking questions to ask when you are in a debate or discussion.

• Is there fairness in this discussion? Is the moderator supporting one side? Do they want to make one side look stupid or wrong? 
• What is the aim of this discussion? Is there a major problem that needs to be solved? If so, how can I help solve it?
• Who are the people affected by this discussion? If they were here, what would they say?
• Do my views on this discussion matter? If I raise my point, will I be redundant?
• What am I supposed to learn from this debate, and how can I use what I have learned in my daily life?
• Does the audience seem to be biased towards one side? Are they booing one side? What can I do even if it's our opponents being booed?
• Who are the discussion panel members? What views have they held about this kind of discussion or any other related discussions in the past?
• How can I make my point without being ambiguous? Before I speak, should I take down some notes to avoid any confusion during my speech?
• Am I ready to apologize if I make a mistake during the discussion? If so, what are the limits?
• What information does my team, or I need before this discussion? 

Critical Thinking Questions About Lying

Admitting when you are wrong, choosing not to cheat, and sharing constructive feedback are all ways to show your honesty. Here are some critical thinking skills to ask regarding lying.

• Will the lie hurt those I am telling, or will it help them? What if being honest might cause my friend unnecessary pain?
• Should I be the one telling this person a lie, or I let someone else do it? 
• Will I be the one hurt if I tell this lie? Will my friend feel I am a betrayer? Will it affect our friendship?
• Do they answer my questions in detail, or are they always trying to ignore and dodge the main problem?
• What if I ask these people the same question using different terms and wording? Will they give me the same response?
• Did the tone of my friend suddenly change after I asked him/her this question? Do they sound louder, faster, or slower compared to how they usually speak?
• Does this person have something to gain by lying to me? What is their motive?
• Does this person take a sudden pause or hesitate more than usual when responding to my question?
• When I look at these people's faces, do their facial expressions match what they say?
• Should I believe this person or not? What are my intuitions? Does it look like they are telling the truth?
• Do they blink like other days when I ask them questions? Are they always trying to avoid direct eye contact?
• Why do they seem uncomfortable when it’s just a normal conversation?  

Critical Thinking Questions When Presented With a Claim

Critical thinking is much more than just evaluating whether a claim is true or not. It also means a critical thinker reflects on what follows from true claims.

• What does this claim mean, and what are its implications? What if it's a false claim?
• Which of my morals, values, or beliefs do I have to give up to accept this claim?
• Do professionals in this field agree or disagree with the claim that has been made?
• Do they have evidence to back their claim? Which is the most robust evidence to support the claim?
• What argument can I come up with to refute this claim? Or what is the best view that can support this claim?
• Who is the primary source of the claim being made? Is the basis of the claim reliable?
• Is it a claim, or it's just an opinion?
• Is the claim likely to be 100% false, true, or partially true?
• Am I allowed to refute the claim and table my evidence, or is it one-sided?

Critical Thinking Interview Questions

Critical thinking skills are valuable in any industry or field and for almost all roles. During a job interview, you will be asked questions so the potential employer can assess your skills and see how you use logic. Your critical thinking ability is just one vital part that can play into your professional development.

• Is there a time you had to convince someone to use an alternate approach to solve a problem?
• Have you ever had to make a difficult decision quickly?
• How would you handle a situation where your supervisor handled something wrong or made a mistake?
• What is one of the most difficult decisions you have ever had to make at work?
• How would you solve a disagreement between coworkers when approaching a project?
• Can you describe a time when you anticipated a problem ahead of time and took the appropriate steps to stop the problem from becoming an issue?
• If you discover a cheaper way to do something or a better solution to a problem and try to explain it to your supervisor, but they don’t understand, what do you do?

Critical Thinking Questions for Kids

We can’t leave the kids out either. Critical thinking questions for kids get them thinking and talking. It also allows a parent to get to know their child better.

• How many grains of sand do you think are on the beach?
• What would happen if it stopped raining?
• Do you think there is life on other planets?
• Should children be able to set their own bedtimes?
• How would you describe what a tree looks like without saying green or leaves?
• Can you name five different emotions?
• Can you talk for five minutes without uttering “um?”

What Are the Basic Principles of Critical Thinking?

Your critical thinking skills involve gathering complete information, understanding and defining terms, questioning the methods by which we get facts, questioning the conclusions, and looking for hidden assumptions and biases.

Additionally, we can’t expect to find all of the answers, and we need to take the time to examine the big picture of it all.

Here are the basic principles:

• Disposition: Someone with critical thinking skills is often skeptical, open-minded, and practices fair-mindedness. They can look at different viewpoints and change positions if the evidence and reason lead them to do so.
• Criteria: In order to think critically, one must also apply criteria. Certain conditions must be met before someone believes in something. The information needs to be from credible sources.
• Argument: An argument is simply a statement or proposition that is shown with supporting evidence. When you use your critical thinking skills, you identify, evaluate, and construct your argument.
• Reasoning: With critical thinking comes reasoning. You must examine logical relationships among the statements being made.
• Point of View: Critical thinkers can see things from different perspectives and different points of view.

What Are Good Analysis Questions?

Analysis is a part of critical thinking that allows you to examine something carefully. Someone with analytical skills can examine the information presented, understand what that information means, and then properly explain that information to others. Analysis in critical thinking provides more clarity on the information you process.

When analyzing, you may ask yourself, “how do I know this,” how would I solve this problem,” and “why does it matter?”

Why Is Critical Thinking an Important Skill?

Critical thinking skills allow you to express thoughts, ideas, and beliefs in a better way. It also leads to improved communication while allowing others to understand you better. Critical thinking fosters creativity and encourages out-of-the-box thinking. This is a skill that can be applied to many different areas of your life.

For example, knowing the answers to critical thinking questions for a job interview will better prepare you for the interview. Many employers, during questioning, are likely to ask you critical thinking questions to assess if you have the ability to evaluate information effectively so you can make more informed decisions.

Final Thoughts on Critical Thinking Questions

Although it's common to get torn between making two or more choices, nobody wants to make the wrong decision. The only thing you can do to avoid this is use critical thinking questions to examine your situation. The answers to these questions will help you make informed decisions and help you comprehend crucial matters in your life. 

Want to learn more about critical thinking and decision-making using a real-life example? Here is  how Jeff Bezos uses critical thinking  to make some of the most challenging life decisions.

Finally, if you want to ask better questions, then watch this short, 20-minute course to learn how to have a great conversation with virtually anyone .

15.1 Drawing the Poverty Line

Learning objectives.

• Explain economic inequality and how the poverty line is determined
• Analyze the U.S. poverty rate over time, noting its prevalence among different groups of citizens

Comparisons of high and low incomes raise two different issues: economic inequality and poverty . Poverty is measured by the number of people who fall below a certain level of income—called the poverty line —that defines the income one needs for a basic standard of living. Income inequality compares the share of the total income (or wealth) in society that different groups receive. For example, compare the share of income that the top 10% receive to the share of income that the bottom 10% receive.

In the United States, the official definition of the poverty line traces back to a single person: Mollie Orshansky . In 1963, Orshansky, who was working for the Social Security Administration, published an article called “Children of the Poor” in a highly useful and dry-as-dust publication called the Social Security Bulletin . Orshansky’s idea was to define a poverty line based on the cost of a healthy diet.

Her previous job had been at the U.S. Department of Agriculture, where she had worked in an agency called the Bureau of Home Economics and Human Nutrition. One task of this bureau had been to calculate how much it would cost to feed a nutritionally adequate diet to a family. Orshansky found that the average family spent one-third of its income on food. She then proposed that the poverty line be the amount one requires to buy a nutritionally adequate diet, given the size of the family, multiplied by three.

The current U.S. poverty line is essentially the same as the Orshansky poverty line, although the government adjusts the dollar amounts to represent the same buying power over time. The U.S. poverty line in 2015 ranged from $11,790 for a single individual to $25,240 for a household of four people.

Figure 15.2 shows the U.S. poverty rate over time; that is, the percentage of the population below the poverty line in any given year. The poverty rate declined through the 1960s, rose in the early 1980s and early 1990s, but seems to have been slightly lower since the mid-1990s. However, in no year in the last four decades has the poverty rate been less than 11% of the U.S. population—that is, at best about one American in nine is below the poverty line. In recent years, the poverty rate appears to have peaked at 15.9% in 2011 before dropping to 14.5% in 2013. Table 15.1 compares poverty rates for different groups in 2011. As you will see when we delve further into these numbers, poverty rates are relatively low for Whites, for the elderly, for the well-educated, and for male-headed households. Poverty rates for females, Hispanics, and African Americans are much higher than for Whites. While Hispanics and African Americans have a higher percentage of individuals living in poverty than others, most people in the United States living below the poverty line are White.

Visit this website for more information on U.S. poverty.

The concept of a poverty line raises many tricky questions. In a vast country like the United States, should there be a national poverty line? After all, according to the Federal Register, the median household income for a family of four was $102,552 in New Jersey and $57,132 in Mississippi in 2013, and prices of some basic goods like housing are quite different between states. The poverty line is based on cash income, which means it does not account for government programs that provide assistance to the poor in a non-cash form, like Medicaid (health care for low-income individuals and families) and food aid. Also, low-income families can qualify for federal housing assistance. (We will discuss these and other government aid programs in detail later in this chapter.)

Should the government adjust the poverty line to account for the value of such programs? Many economists and policymakers wonder whether we should rethink the concept of what poverty means in the twenty-first century. The following Clear It Up feature explains the poverty lines set by the World Bank for low-income countries around the world.

Clear It Up

How do economists measure poverty in low-income countries.

The World Bank sets two poverty lines for low-income countries around the world. One poverty line is set at an income of $1.25/day per person. The other is at $2/day. By comparison, the U.S. 2015 poverty line of $20,090 annually for a family of three works out to $18.35 per person per day.

Clearly, many people around the world are far poorer than Americans, as Table 15.2 shows. China and India both have more than a billion people; Nigeria is the most populous country in Africa; and Egypt is the most populous country in the Middle East. In all four of those countries, in the mid-2000s, a substantial share of the population subsisted on less than $2/day. About half the world lives on less than $2.50 a day, and 80 percent of the world lives on less than $10 per day. (Of course, the cost of food, clothing, and shelter in those countries can be very different from those costs in the United States, so the $2 and $2.50 figures may mean greater purchasing power than they would in the United States.)

Any poverty line will be somewhat arbitrary, and it is useful to have a poverty line whose basic definition does not change much over time. If Congress voted every few years to redefine poverty, then it would be difficult to compare rates over time. After all, would a lower poverty rate change the definition, or that people were actually better off? Government statisticians at the U.S. Census Bureau have ongoing research programs to address questions like these.

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• Section URL: https://openstax.org/books/principles-economics-2e/pages/15-1-drawing-the-poverty-line

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3.11: Critical Thinking Questions

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Review Figure 3.4. Suppose the government decided that, since gasoline is a necessity, its price should be legally capped at $1.30 per gallon. What do you anticipate would be the outcome in the gasoline market?

Explain why the following statement is false: “In the goods market, no buyer would be willing to pay more than the equilibrium price.”

Explain why the following statement is false: “In the goods market, no seller would be willing to sell for less than the equilibrium price.”

Consider the demand for hamburgers. If the price of a substitute good (for example, hot dogs) increases and the price of a complement good (for example, hamburger buns) increases, can you tell for sure what will happen to the demand for hamburgers? Why or why not? Illustrate your answer with a graph.

How do you suppose the demographics of an aging population of “Baby Boomers” in the United States will affect the demand for milk? Justify your answer.

We know that a change in the price of a product causes a movement along the demand curve. Suppose consumers believe that prices will be rising in the future. How will that affect demand for the product in the present? Can you show this graphically?

Suppose there is a soda tax to curb obesity. What should a reduction in the soda tax do to the supply of sodas and to the equilibrium price and quantity? Can you show this graphically? Hint : Assume that the soda tax is collected from the sellers.

Use the four-step process to analyze the impact of the advent of the iPod (or other portable digital music players) on the equilibrium price and quantity of the Sony Walkman (or other portable audio cassette players).

Use the four-step process to analyze the impact of a reduction in tariffs on imports of iPods on the equilibrium price and quantity of Sony Walkman-type products.

Suppose both of these events took place at the same time. Combine your analyses of the impacts of the iPod and the tariff reduction to determine the likely impact on the equilibrium price and quantity of Sony Walkman-type products. Show your answer graphically.

Most government policy decisions have winners and losers. What are the effects of raising the minimum wage? It is more complex than simply producers lose and workers gain. Who are the winners and who are the losers, and what exactly do they win and lose? To what extent does the policy change achieve its goals?

Agricultural price supports result in governments holding large inventories of agricultural products. Why do you think the government cannot simply give the products away to people experiencing poverty?

Can you propose a policy that would induce the market to supply more rental housing units?

What term would an economist use to describe what happens when a shopper gets a “good deal” on a product?

Explain why voluntary transactions improve social welfare.

Why would a free market never operate at a quantity greater than the equilibrium quantity? Hint: What would be required for a transaction to occur at that quantity?

Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

14.1 Drawing the Poverty Line

Learning objectives.

• Explain economic inequality and how the poverty line is determined
• Analyze the U.S. poverty rate over time, noting its prevalence among different groups of citizens

Comparisons of high and low incomes raise two different issues: economic inequality and poverty . Poverty is measured by the number of people who fall below a certain level of income—called the poverty line —that defines the income needed for a basic standard of living. Income inequality compares the share of the total income (or wealth) in society that is received by different groups; for example, comparing the share of income received by the top 10% to the share of income received by the bottom 10%.

In the United States, the official definition of the poverty line traces back to a single person: Mollie Orshansky . In 1963, Orshansky, who was working for the Social Security Administration, published an article called “Children of the Poor” in a highly useful and dry-as-dust publication called the Social Security Bulletin . Orshansky’s idea was to define a poverty line based on the cost of a healthy diet.

Her previous job had been at the U.S. Department of Agriculture, where she had worked in an agency called the Bureau of Home Economics and Human Nutrition. One task of this bureau had been to calculate how much it would cost to feed a nutritionally adequate diet to a family. Orshansky found that the average family spent one-third of its income on food. She then proposed that the poverty line be the amount needed to buy a nutritionally adequate diet, given the size of the family, multiplied by three.

The current U.S. poverty line is essentially the same as the Orshansky poverty line, although the dollar amounts are adjusted each year to represent the same buying power over time. The U.S. poverty line in 2015 ranged from $11,790 for a single individual to $25,240 for a household of four people.

Figure 1 shows the U.S. poverty rate over time; that is, the percentage of the population below the poverty line in any given year. The poverty rate declined through the 1960s, rose in the early 1980s and early 1990s, but seems to have been slightly lower since the mid-1990s. However, in no year in the last four decades has the poverty rate been less than 11% of the U.S. population—that is, at best about one American in nine is below the poverty line. In recent years, the poverty rate appears to have peaked at 15.9% in 2011 before dropping to 14.5% in 2013. Table 1 compares poverty rates for different groups in 2011. As you will see when we delve further into these numbers, poverty rates are relatively low for whites, for the elderly, for the well-educated, and for male-headed households. Poverty rates for females, Hispanics, and African Americans are much higher than for whites. While Hispanics and African Americans have a higher percentage of individuals living in poverty than others, most people in the United States living below the poverty line are white.

Visit this website for more information on U.S. poverty.

The concept of a poverty line raises many tricky questions. In a vast country like the United States, should there be a national poverty line? After all, according to the Federal Register, the median household income for a family of four was $102,552 in New Jersey and $57,132 in Mississippi in 2013, and prices of some basic goods like housing are quite different between states. The poverty line is based on cash income, which means it does not take into account government programs that provide assistance to the poor in a non-cash form, like Medicaid (health care for low-income individuals and families) and food aid. Also, low-income families can qualify for federal housing assistance. (These and other government aid programs will be discussed in detail later in this chapter.)

Should the poverty line be adjusted to take the value of such programs into account? Many economists and policymakers wonder whether the concept of what poverty means in the twenty-first century should be rethought. The following Clear It Up feature explains the poverty lines set by the World Bank for low-income countries around the world.

How is poverty measured in low-income countries?

The World Bank sets two poverty lines for low-income countries around the world. One poverty line is set at an income of $1.25/day per person; the other is at $2/day. By comparison, the U.S. 2015 poverty line of $20,090 annually for a family of three works out to $18.35 per person per day.

Clearly, many people around the world are far poorer than Americans, as Table 2 shows. China and India both have more than a billion people; Nigeria is the most populous country in Africa; and Egypt is the most populous country in the Middle East. In all four of those countries, in the mid-2000s, a substantial share of the population subsisted on less than $2/day. Indeed, about half the world lives on less than $2.50 a day, and 80 percent of the world lives on less than $10 per day. (Of course, the cost of food, clothing, and shelter in those countries can be very different from those costs in the United States, so the $2 and $2.50 figures may mean greater purchasing power than they would in the United States.)

Any poverty line will be somewhat arbitrary, and it is useful to have a poverty line whose basic definition does not change much over time. If Congress voted every few years to redefine what poverty means, then it would be difficult to compare rates over time. After all, would a lower poverty rate mean that the definition had been changed, or that people were actually better off? Government statisticians at the U.S. Census Bureau have ongoing research programs to address questions like these.

Key Concepts and Summary

Wages are influenced by supply and demand in labor markets, which can lead to very low incomes for some people and very high incomes for others. Poverty and income inequality are not the same thing. Poverty applies to the condition of people who cannot afford the necessities of life. Income inequality refers to the disparity between those with higher and lower incomes. The poverty rate is what percentage of the population lives below the poverty line, which is determined by the amount of income that it takes to purchase the necessities of life. Choosing a poverty line will always be somewhat controversial.

Self-Check Questions

Describe how each of these changes is likely to affect poverty and inequality:

• Incomes rise for low-income and high-income workers, but rise more for the high-income earners.
• Incomes fall for low-income and high-income workers, but fall more for high-income earners.

Review Questions

• How is the poverty rate calculated?
• What is the poverty line?
• What is the difference between poverty and income inequality?

Critical Thinking Questions

• What goods and services would you include in an estimate of the basic necessities for a family of four?
• If a family of three earned $20,000, would they be able to make ends meet given the official poverty threshold?
• In country A, the population is 300 million and 50 million people are living below the poverty line. What is the poverty rate?
• In country B, the population is 900 million and 100 million people are living below the poverty line. What is the poverty rate?

Ebeling, Ashlea. 2014. “IRS Announces 2015 Estate And Gift Tax Limits.” Forbes. Accessed March 16, 2015. http://www.forbes.com/sites/ashleaebeling/2014/10/30/irs-announces-2015-estate-and-gift-tax-limits/.

Federal Register: The Daily Journal of the United States Government. “State Median Income Estimates for a Four-Person Household: Notice of the Federal Fiscal Year (FFY) 2013 State Median Income Estimates for Use Under the Low Income Home Energy Assistance Program (LIHEAP).” Last modified March 15, 2012. https://www.federalregister.gov/articles/2012/03/15/2012-6220/state-median-income-estimates-for-a-four-person-household-notice-of-the-federal-fiscal-year-ffy-2013#t-1.

Luhby, Tami. 2014. “Income is on the rise . . . finally!” Accessed April 10, 2015. http://money.cnn.com/2014/08/20/news/economy/median-income/.

Meyer, Ali. 2015. “56,023,000: Record Number of Women Not in Labor Force.” CNSNews.com. Accessed March 16, 2015. http://cnsnews.com/news/article/ali-meyer/56023000-record-number-women-not-labor-force.

Orshansky, Mollie. “Children of the Poor.” Social Security Bulletin . 26 no. 7 (1963): 3–13. http://www.ssa.gov/policy/docs/ssb/v26n7/v26n7p3.pdf.

The World Bank. “Data: Poverty Headcount Ratio at $1.25 a Day (PPP) (% of Population).” http://data.worldbank.org/indicator/SI.POV.DDAY.

U.S. Department of Commerce: United States Census Bureau. “American FactFinder.” http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml.

U.S. Department of Commerce: United States Census Bureau. “Current Population Survey (CPS): CPS Table Creator.” http://www.census.gov/cps/data/cpstablecreator.html.

U.S. Department of Commerce: United States Census Bureau. “Income: Table F-6. Regions—Families (All Races) by Median and Mean Income.” http://www.census.gov/hhes/www/income/data/historical/families/.

U.S. Department of Commerce: United States Census Bureau. “Poverty: Poverty Thresholds.” Last modified 2012. http://www.census.gov/hhes/www/poverty/data/threshld/.

U.S. Department of Health & Human Services. 2015. “2015 Poverty Guidelines.” Accessed April 10, 2015. http://www.medicaid.gov/medicaid-chip-program-information/by-topics/eligibility/downloads/2015-federal-poverty-level-charts.pdf.

U.S. Department of Health & Human Services. 2015. “Information on Poverty and Income Statistics: A Summary of 2014 Current Population Survey Data.” Accessed April 13, 2015. http://aspe.hhs.gov/hsp/14/povertyandincomeest/ib_poverty2014.pdf.

Answers to Self-Check Questions

• Poverty falls, inequality rises.
• Poverty rises, inequality falls.

Principles of Microeconomics - Hawaii Edition Copyright © 2018 by John Lynham is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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