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From Food to Health Care, the Poor Pay More

The economics of poverty mean the poorest pay higher prices for everyday essentials

By Clay Dillow,  Newser Staff

Posted May 18, 2009 7:54 AM CDT

(Newser) – The economics of poverty are complicated, the Washington Post reports, but it boils down to this: “The poorer you are, the more things cost.” The poor spend more in time, money, hassle, and exhaustion than do the middle class or wealthy on everything from a loaf of bread to a bank loan. Lacking transportation, the poor often shop for groceries at corner stores where a gallon of milk can cost a dollar more. Hours that could be spent working are whiled away at the laundromat.

Lacking a bank account, many of the nation’s 37 million living below the poverty line depend on fee-heavy check-cashing services and “payday” loans that carry an effective annual percentage rate of more than 800%. With no credit and no down payment, the poor can’t make the important leap from renting to homeownership—unless, of course, they can secure a subprime loan.

Working poor often don't have adequate transportation, so they shop for groceries at corner stores that charge higher prices and often sell less-healthy foods.
Working poor often don't have adequate transportation, so they shop for groceries at corner stores that charge higher prices and often sell less-healthy foods.   (AP Photo/Lisa Poole, file)
Time spent at the laundromat because they cannot afford an in-home washer and dryer costs the poor both time and money.
Time spent at the laundromat because they cannot afford an in-home washer and dryer costs the poor both time and money.   (AP Photo/Noah Berger)
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COMMENTS
Showing 3 of 15 comments
freethemall
May 19, 2009 1:13 AM CDT
Thank you, SPH. Considering the source, I consider your response a very nice compliment.
freethemall
May 18, 2009 6:14 AM CDT
Article I, section 8, clause 18: To make all laws which shall be necessary and proper for carrying into execution the forgoing powers, and all other powers vested by this Constitution in the government of the United States, or in any department or officer thereof. This clause, and the Tenth Amendment counter balance each other. It is up to the Supreme Court to interpret the Constitution in such a way as to overcome this "tension" so to speak.
freethemall
May 18, 2009 5:48 AM CDT
You don't insult anyone? You call everyone who is not a knee-jerk conservative a "dumbolib". Incidentally, if "dumbolibs" wanted to increase poverty, as you imply, then they would certainly vote for Republicans.

More Newser Stories

Ranks of Poorest Poor Swell to New High

Nearly 1 in 6 in US Lives in Poverty

We've Made It a Crime to Be Poor

A Third of Working Families Live in Near-Poverty

Middle Class Morphs Into 'New Poor'


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