For several years, Detroit has had the highest poverty rate in the country... With real unemployment of 50 percent, many households rely on the completely inadequate social safety net. Even the term “poor” is no longer adequate to describe the desperate conditions in Detroit... a new term, “deep poverty..." describes a vast and growing population of US families whose income has fallen to a fraction of the official poverty level.
Michigan League for Human Services reports that since 1979 the value of the maximum public assistance grant has dropped from 23 percent below the poverty threshold to 66 percent below the poverty threshold. Thus a Michigan welfare or Family Independence Program (FIP) recipient today often lives at just 34 percent of the poverty level, a situation dictated by the very design of the program.
The current FIP grant is about $492 a month for a family of three... Furthermore, because of onerous qualification requirements imposed after the Clinton administration’s welfare reform in the mid-1990s, and because of changes made in Michigan welfare rules in the past decade, only one-third of families below the poverty level who live in the state are now receiving any cash benefits.When unemployment was last over 12 percent in Michigan, in the early 1980s, there were over 240,000 welfare caseloads in the state. Today, there are just 72,500...
Earlier this year, an analysis of state data by the New York Times found some six million Americans—one in 50 people in the US — living on no income outside the $100 or $200 a month in food stamps. In Michigan, this situation was made possible by the elimination in 1991 of General Assistance, a paltry monthly amount once provided to individuals without children. But even for families with children, many receive only food stamps, especially after the Personal Responsibility and Work Opportunities Reconciliation Act (PRWORA) was passed at the federal level in 1996...
http://www.wsws.org/articles/2010/mar2010/pove-m31.shtml