Too many Marylanders still struggling to get by

September 18, 2014 by Kathleen Algire-Fedarcyk in Blog, Economic Opportunity, Health

A new look at income and poverty in Maryland highlights that many families have not yet recovered from the recession and underscores the need for Maryland policymakers to do more to help struggling people afford basics like decent housing, nutritious food, and reliable child care and transportation.

Wages remain stagnant and poverty held steady in Maryland, according to new information released by the Census Bureau this week. Maryland saw no change in its median income, adjusted for inflation, between 2010 and 2013, The American Community Survey reports. Additionally, 1 in 10 Marylanders continue to live in poverty. That’s less than $24,000 a year for a family of four. For children the situation is bleaker, with 13 percent of children living in poverty.

One silver lining: The number of Marylanders without health insurance decreased between 2010 and 2013 as a greater number of residents gained coverage. More children also gained access to health insurance.

Fortunately, Maryland lawmakers recently took two significant steps to boost Maryland workers. They:

  • Increased the minimum wage. It will rise from $7.25to $10.10 by 2018, with  incremental increases set to begin Jan. 1, 2015
  • Increased the state Earned Income Tax Credit, which gives a boost to Marylanders working for the lowest wages. The EITC helps families get by more easily on low-wage work – and lifts many out of poverty — by offsetting some of the taxes they pay (like sales taxes) and boosting their income.

Both will accelerate the economic recovery of the working families in Maryland. Incomes at the top have increased, and we need the same for incomes at the middle and bottom if our economy is to truly thrive again.