In 2020, US pandemic aid boosted incomes and reduced poverty, according to the government.
According to a government data analysis released Tuesday, massive US government stimulus payments made during the Covid-19 outbreak last year increased household income and reduced the number of Americans living in poverty.
The US Congress issued a series of major rescue packages including cash rewards to individuals and financing to assist firms to continue paying wages as the pandemic forced the economy to mostly shut down, resulting in massive job losses.
“Real median household income climbed 4.0 percent after taxes between 2019 and 2020,” according to the Census Bureau.
According to the organization, the measure of poverty that includes stimulus payments fell to 9.1 percent, 2.6 percentage points lower than in 2019.
However, excluding government assistance, the official poverty rate jumped to 11.4 percent for the first time in six years, implying that 3.3 million more individuals fell into poverty last year.
According to the agency, the median household income in 2020, excluding stimulus, was $67,521 compared to $67,521 in 2019.
“It was the first statistically significant drop in median household income since 2011,” according to the report.
The information comes from a variety of Census reports.