WASHINGTON -- Squeezed by rising living costs, a record number of Americans - nearly 1 in 2 - have fallen into poverty or are scraping by on earnings that classify them as low income.
The latest census data depict a middle class that's shrinking as unemployment stays high and the government's safety net frays. The new numbers follow years of stagnating wages for the middle class that have hurt millions of workers and families.
"Safety net programs such as food stamps and tax credits kept poverty from rising even higher in 2010, but for many low-income families with work-related and medical expenses, they are considered too 'rich' to qualify," said Sheldon Danziger, a University of Michigan public policy professor who specializes in poverty.
"The reality is that prospects for the poor and the near-poor are dismal," he said. "If Congress and the states make further cuts, we can expect the number of poor and low-income families to rise for the next several years."
Congressional Republicans and Democrats are sparring over legislation that would renew a Social Security payroll tax reduction, part of a year-end political showdown over economic priorities that could also trim unemployment benefits, freeze federal pay and reduce entitlement spending.
Mayors in 29 cities say more than 1 in 4 people needing emergency food assistance did not receive it. Many formerly middle-class Americans are dropping below the low-income threshold - roughly $45,000 for a family of four - because of pay cuts, a forced reduction of work hours or a spouse losing a job.
States in the South and West had the highest shares of low-income families, including Arizona, New Mexico and South Carolina, which have scaled back or ended aid programs.
