A provocative financial essay has ignited fierce debate across the United States by claiming that a family of four earning less than $136,500 a year should now be considered poor.
The Viral Claim and the Backlash
The argument was put forward by Michael Green, chief strategist at Simplify Asset Management, in a widely shared Substack newsletter. He labelled the official federal poverty threshold of $31,200 for a household of four as a "broken benchmark," asserting that a low six-figure income represents "the new poor."
This calculation was swiftly criticised by economists and commentators. Kevin Corinth, an economist, stated the figure was "completely disconnected from reality," noting it far exceeds the US median household income of $83,730. "It's laughable to put a poverty line far above the median income," Corinth argued.
Beyond the Numbers: The Real Cost of Living
However, the core issue raised by Green's essay resonates with many families. While the specific $136,500 figure is contentious, the underlying message about soaring living costs is not. The debate shifts focus from abstract economic indicators to the tangible pressures on household budgets.
For most people, economic health is measured by the answers to simple questions: Can they afford housing, transport, and groceries? Can they manage the staggering costs of childcare, which often rivals university tuition, alongside rising health insurance premiums? For a growing number, the answer is a resounding no.
A Wall Street Wake-Up Call on Economic Anger
The significance of the essay may lie less in its exact maths and more in its source. That a figure from the finance world is highlighting this crisis underscores its severity. Green identifies the root of widespread public anger not in culture war issues, but in an inequitable economy where median incomes no longer guarantee security.
This analysis challenges the optimistic economic narratives often promoted by politicians. It suggests that official metrics are failing to capture the acute financial strain experienced by ordinary families, making a discussion about redefining economic hardship not just valid, but necessary.
