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Parents may not able to provide the necessity of their children.

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โˆ™ 2012-10-24 15:36:33
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Q: How does the cost of living increase affect low income families?
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An increase in national income affects the increase in the standard of living because an increase in income increases the standard of living. When the national income is low, people are poorer.


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Your cost of living will increase, your real income will decrease.


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The requirements for living in apartments for low income families will vary depending on the municipality that is overseeing the low income housing. To find out the specific requirements in your locality or for a specific low income housing project, contact the local municipal housing authority that oversees low income housing in your area.


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During the depression, families were affected by having a large loss in their income and not being able to live the lives they were accustomed to living. Many men were without work and had to cutback on the amount of food they were able to purchase for their families.


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Inflation affects low income earners more than high income earners. This is because low income earners' income tends not to rise as quickly as prices, therefore, their purchasing power decreases. Also, low income earners do not have the skills to demand higher wages. It should be noted that high inflation generally leads to interest rate increases. This affects low income earners' cost of living and compounds the other affects of inflation. So, inflation decreases purchasing power of low income earners relative to high income earners, whose income increase as quick as inflation. Ultimately, income distribution becomes less equal.


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Take the amount of families below the poverty line and multiply it by how many people are in those families as the headcount index uses individuals not entire families to calculate to the index. Once you get the amount of individuals living in poverty you divide it by the total population. Ex: 2000 Families of 2 have an income less than the poverty line. 4000 Families of 2 have an income over the poverty line. 2000 Families of 4 have an income less than poverty line. 4000 Families of 4 have an income over the poverty line. First the number of individuals in poverty: (2000 * 2) + (2000 * 4) = (4000) + (8000) = 12,000 Then find the total population (2000 * 2) + ( 4000 * 2) + (2000 * 4) + (4000 *4) = 36,000 12,000 / 36,000 = 33.33% So the headcount here would show us that 1/3 of the total population is in poverty.


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