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Here's What Poverty Would Look Like If Social Security Didn't Exist

This 1 Chart Shows Why Social Security Is So Important
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By 

Associate Business Editor, The Huffington Post

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The nation’s poverty crisis would be a lot worse if it wasn’t for safety net programs -- particularly Social Security, a new analysis finds.

If Social Security didn’t exist, about 25 million more Americans would be in poverty, according to an analysis of 2011 Census data from the Economic Policy Institute, a left-leaning think tank. That would push one measure of the poverty rate up from 16.1 percent to 24.4 percent, as the chart below illustrates.

"Even though there are a lot of people hurting right now -- with the unemployment rate still elevated and the labor market weak -- government programs are still providing substantial help to many Americans," Elise Gould, the author of the analysis told The Huffington Post.

The data is based on an alternate poverty threshold called the Supplemental Poverty Measure, which takes into account factors like how much Americans receive from government benefit programs.

The findings come as the future of Social Security is in jeopardy. President Barack Obama proposed cuts to the program in his 2014 budget, much to the chagrin of some of his liberal supporters. The trust fund that supports the program is projected to run out of money by 2033 if Congress does nothing to prevent this from happening.

Meanwhile, the population that relies most heavily on Social Security is increasingly struggling to get by. One in seven seniors live in poverty, according to the Census Bureau. In addition, 4.8 million Americans over 60 are food insecure. That number has more than doubled since 2001.

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Before You Go

9 Ways Americans Haven't Recovered
Unemployment(01 of09)
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When the economy was roaring in 2007, the U.S. unemployment rate was 5 percent. In January 2013 the unemployment rate was 7.9 percent. (credit:AP)
Income And Wages(02 of09)
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The U.S. median income fell to $50,054 in 2011, which is the most recent full year in which that data is available. That's down 8.1 percent since 2007. Wages also fell to a record-low 43.5 percent of the economy in 2012, according to the New York Times.Meanwhile, corporate profits are still booming. (credit:Shutterstock)
Number Of People On Food Stamps(03 of09)
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The number of Americans on food stamps surged to a record in 46 million in June 2012. That's compared to 26.5 million in 2007. (credit:AP)
Uninsured Americans(04 of09)
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More than 16 percent of Americans -- or 48.6 million people -- were uninsured in 2011, according to Kaiser Health News. This number is higher than what it was in 2007, when the share of uninsured Americans was 15.3 percent. (credit:AP)
Student Loan Debt(05 of09)
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The average student loan debt for a class of 2011 graduate was about $26,500, according to the Project on Student Debt data cited by the New York Times. Since 2007, when the average student debt was $23,349, student loan debt has increased for almost every demographic and the size of that debt has gone up as well, according to Pew. (credit:PA)
Homelessness(06 of09)
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In 2011, 644,067 Americans experienced homelessness on any given night, according to data from the National Alliance to End Homelessness cited by NBC News. Though that number is actually down 13 percent from 2007, the decrease is largely attributed to a boost in the number of programs to help keep the homeless off the streets. (credit:Getty Images)
Children In Poverty(07 of09)
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More than 16 million children -- or about 20 percent of American children -- were in poverty in 2011, according to the Census Bureau. That's up from nearly 18 percent of American children in 2007. (credit:Getty Images)
Homeownership(08 of09)
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We're on our way to becoming a renter nation. The homeownership rate in the 12 months leading up to May 2012 was 65.4 percent, according to Census Bureau data cited by CNNMoney. That's the lowest rate in 15 years. In the last quarter of 2007, the homeownership rate was 67.8 percent. (credit:AP)
Foreclosures(09 of09)
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There were 2.7 million foreclosures in 2011. That's up from 2.2 million foreclosures in 2007. (credit:AP)
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