Cailfornia Economic Status

Economy and Poverty in California

Economy and Poverty in Today 's California : An Analysis and Suggestions for Improvement

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Abstract

Although California 's economy is large , strong , and diverse , there are many problems with poverty . Some major problems include lack of affordable housing , and lack of access to education and health care Many definitions of poverty exist , but however we define poverty , one thing that remains clear is that it is a problem in the state of California , and needs improvement . Improvements should include

building more low cost housing , improving low performing school districts , and implementing universal health care

Economy and Poverty in Today 's California : An analysis and Suggestions for Improvement

California and its Economy

California is the 8th ranking economy in the world and has the largest and most diverse economy of any state in the nation . This includes the information sector , manufacturing , tourism , logistics , and professional services , which continue to grow . California receives many prime contracts from NASA and from the Defense Department . In 2006 , personal income was more than 1 trillion . However , despite the size and diversity of California 's economy , many problems with poverty exist

Poverty : Current Statistics in California

What is Poverty

There are many definitions of poverty . Poverty can be defined as a lack of income , but also a lack of access to health , education , and other services . Social poverty is defined as exclusion from or lack of social opportunities . If an individual 's income is so low that they cannot participate in the minimum acceptable way of life in the place that they live , they would be considered poor . In California , poverty rates are higher among Latinos , African Americans , Native Americans , and East Asian immigrants . Therefore , these groups may face social challenges both from their poverty and their minority group status

Absolute poverty uses a dollar value to judge who is poor . In the 1960 's , Lyndon B . Johnson 's government created a poverty line ' which is set at about three times the yearly cost of a nutritionally acceptable diet . In 2005 , California 's rate of absolute poverty was almost one percent higher than the rest of the country

Relative poverty compares individuals or households to others in the society around them . For example , if an individual 's income is half the mean income of others in their state , they could be considered poor Another way to judge poverty is comparing income to consumption . Income is frequently used to define poverty , but consumption can relate more directly to a person 's wellbeing . How much are they able to consume How much do goods and services cost them ? This can include automobiles housing , and other items . Ideally , before retirement , income will exceed consumption , so that saving is possible . The Catholic Charities of California (2006 , state

California is 15th in the states as terms of the percentage of its population in poverty . Debates rage over the accuracy of these statistics . Of most concern is that states such as California have much...