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Friday, July 4, 2008

NEWS

Living poor in Louisiana

Fiscal realities make it tough to break poverty cycle
  • By PATRICK COURREGES
  • Advocate Acadiana bureau
  • Published: Apr 20, 2008 - UPDATED: 12:05 a.m.

Living poor is not the same as living cheap. People living in — or near — poverty and the people and agencies who work with them say that the add-on costs of poverty take a brutal toll on individuals and families who are just hoping to break even.

Breaking even is a growing concern throughout Louisiana and the United States as high-and-rising gasoline prices continue and people at all income levels brace for an economic downturn.

Higher fuel prices have driven up prices for other staple goods and services, and families are also dealing with increases in health and property insurance, as well as more-expensive housing.

The increased cost of living for everyone adds particularly to the strain on poor people, who already pay more for basic needs than their better-off fellow citizens.

The latest figures from the U.S. Census Bureau show Louisiana has the second-highest poverty rate in the nation (behind Mississippi), with about 19 percent of people in the state below the poverty line.

The Census Bureau determines the poverty line by estimating the essential financial needs of a hypothetical family based on the size and composition, and comparing that needed amount to income.

If the income is less than the need, the individual or family is below the poverty line.

With Louisiana’s population of about 4.2 million, that translates into more than 800,000 people in poverty.

Studies and information from people who work to help low-income families every day show that the poor pay more than their higher-income counterparts for many things — including interest rates on cars and homes, groceries and cashing paychecks.

Lorna Bourg, executive director of the Southern Mutual Help Association in south Louisiana, said the extra costs that go with poverty are real and serious.

“Poor people absolutely, in my experience, in every inch of the way, pay more for everything,” she said.

Bourg, whose organization is based in New Iberia, said poor people are not unwilling to work or help themselves.

“Most poor people that I know are working poor,” she said.


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