In 2023, America faced a paradoxical situation: despite rising incomes, the country’s poverty rate increased. According to Census Bureau data, the share of Americans living in poverty rose to 12.9%, up from 12.4% the previous year.

This increase is linked to two key factors: inflation and the expiration of aid programs introduced during the COVID-19 pandemic. Although median household income rose to $80,610, reaching pre-pandemic levels, this proved insufficient to offset rising prices for food and other necessities.

Children were particularly affected, with the poverty rate for those under 18 rising 1.3 percentage points to 13.7%. Experts note that the end of programs such as expanded tax credits for low-income families and additional nutrition assistance played a significant role in this increase.

Social Security remains the most effective anti-poverty program, lifting 27.6 million people above the poverty line. However, this is not enough to compensate for the losses from the termination of other aid programs.