When policymakers lack the right tools for the job, policy suffers. Official economic markers often do not adequately measure the realities that low-income families face: which essentials they need to live and work in the modern economy, and how the costs of those goods have changed over time. The ALICE measures help to fill this gap.
ALICE – Asset Limited, Income Constrained, Employed – households have income above the Federal Poverty Level (FPL) but not high enough to afford essentials in the communities where they live. In 2018, of the 121 million households in the U.S., 13% earned below the FPL, while another 29% — more than twice as many — were ALICE. The core of the problem is that the cost of household basics is higher than the wages of many common occupations, and the cost of household basics is rising faster than wages.
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