Eye on the Pie
For release November 10, 2025
Indiana’s poverty is a continuing disgrace
The latest numbers available from the Census Bureau reported Indiana had 816,000 persons in poverty in 2023. That was registered as 12.2% of the state’s population. We had the 20th highest poverty rate in the nation.
Being better than Kentucky shouldn’t be our goal. Furthermore, 235,000, 15.1% of Hoosier children under age 18 were living in poverty. The poverty threshold for a family of four with two children in 2023 was $37,482
That absurd amount is not used even by most federal programs which set eligibility at some percent above that level. Yet no one can reasonably claim that any of our poverty programs are excessively generous.
Of course, beginning next year, in Indiana, all limits on household incomes will be removed to qualify for state money to pay for school vouchers.
That’s not the full story. The motivation behind the vouchers is hardly better education, it is to segregate children from affluent households from those who are disliked or distrusted by their parents. It is for parents to seize control of public money and have yet stronger control over the thoughts and associations of their children. To reinforce cultural tribalism, the politically powerful can redirect public expenditures to their private purposes.
Within Indiana, of the ten counties with the highest poverty rates, seven had median household incomes below $58,000 per year and all were below $62,000. Of the three counties with the highest poverty rates (Vigo, Grant, and Delaware), each had a formerly significant urban center (Terre Haute, Marion, and Muncie) and none had a median household income above $55,800.
It is so obvious to say, it seems totally unnecessary: Poverty is the consequence of insufficient income. What can be done to increase income? There are many steps that can be taken, but Indiana is reluctant to do anything that actually raises income within the working life of today’s poor.
Yes, we believe in early education, improved reading skills, higher standards of academic performance, preparation for work, internships, or any program the federal government is prepared to fund.
The problem is presumed to be the inadequacy of the worker. S/he lacks the necessary skill, the right attitude for rigorous work, the willingness to sacrifice, the desire for advancement, and faith in the enterprise system in which we all respect our betters.
Yet 30 of the 50 states have raised the minimum wage above the federal $7.25 per hour adopted in July 2009. Simply adjusted for inflation, that amount should now be $11. Even if a household has two people working full-time for $11 an hour, the total income is only $45,760, still insufficient for two in today's world. However, that minimal adjustment does not reflect the increased dependence of Americans on the market place.
Indiana stands firmly, defiantly in the past. Even Scrooge McDuck might be embarrassed to be a Hoosier..
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Mr. Marcus is an economist formerly at the IU Kelley School of Business. Reach him at mortonjmarcus@gmail.com. Follow him and John Guy on Who Gets What? wherever podcasts are available or at mortonjohn.libsyn.com
