Costs of Poverty

While many costs of poverty remain immeasurable, there are some tangible, documented costs associated with poverty.

• People in poverty earn less and therefore spend less than those not in poverty. In 2002, there were 13,470 individuals who may not have been fully participating in the Region’s economy because of poverty.


• Based on equations presented in Nobel laureate Robert Solow’s national study, it is estimated the Region’s 3,088 children living in poverty will cost $27.6 million in future economic output.


• Munson Healthcare spent $1.3 million in charitable care in FY2004.


• Goodwill Industries of Northern Michigan spent over $1.2 million in direct expenses related to poverty programs in 2003.

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Approximately $149 million of Federal and Michigan tax dollars were spent on various health and social programs in the Traverse Bay Region during FY2003. Of the $149 million distributed, $112 million was spent on health care programs and the remainder was distributed to various health and social programs shown in the picture to the right. Click on the image for a larger view.