1 Million Pushed Into Poverty By Rising Gas Prices Last Year

A few weeks ago, the Census Bureau released troubling data showing that the U.S. poverty rate jumped from 14.3% in 2009 to 15.1% in 2010, the highest it’s been in 17 years. Now economists from the Peterson Institute report that one third of the increase in poverty over the past year was caused by rising gasoline prices. The U.S. makes up a smaller share of world demand for oil than it did in the past, so, while global oil prices dropped during the height of the recession, they rebounded strongly last year despite America’s continuing economic difficulties. In 2010, the price of crude oil increased 30% and gasoline prices rose by 18%, pushing nearly 1 million people into poverty.

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