Poverty and Income

The number and percent of American Indian children living below the poverty level, already high in the 1970's, rose sharply during the decade of the 1980's. In 1979, about one-third (34%) of American Indian children in Minnesota lived in households with incomes below the government's official poverty level. Just ten years later, more than half (55%) were living in poverty. Table 4 shows that large increases occurred in all major regions of the state, including the metro area suburbs. (See Chart A also.)

Table 4: Poverty Rate for American Indian Children 1979-1989
	1979	1989	Change in Percentage Points
Minneapolis	48.9%	66.3%	+17.4
St. Paul	24.3%	46.4%	+22.1
Metro Suburbs	16.3%	28.2%	+11.9
Greater Minnesota	32.4%	55.9%	+23.5
Statewide Totals	33.7%	54.8%	+21.1

[The poverty rate is based on household income during the entire year prior to the census. In 1989, a family of three with a cash income below $9,885 was defined as living in poverty. The poverty level for a household depends on the number of people in the household and is adjusted each year for inflation. By 1993, the poverty level for a family of three had risen to $11,522.]

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Poverty was exceptionally widespread in Minneapolis and on some of the larger reservations in Greater Minnesota. The 1989 poverty rates for American Indian children living on the largest reservations were as follows:

Reservation	Poverty Rate
White Earth	66.8%
Leech Lake	64.4%
Red Lake	55.6%

The American Indian community was not alone in facing severe economic distress. As Chart B shows, childhood poverty rose dramatically in all communities of color during the last decade. Only among whites was there little change in the extent of poverty among children. By 1989, American Indian children were over five times more likely than white children to be living below the poverty level.

As is usually the case in U.S. society, poverty is most common among the very young. Nearly two-thirds (64%) of American Indian children 0-5 years old in Minnesota are living below the poverty level:

American Indian Poverty Rate (Minn.)
0-5 years old	64.3%
6-11 years old	52.8%
12-17 years old	44.2%
18 years and older	36.2%

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Next Section

The Well-Being of American Indian Children in Minnesota: Economic Conditions, 1994