Final answer:
A considerable number of American families, including middle class ones, receive government assistance. The challenge in determining the exact amount of aid lies in balancing the marginal benefit with cost. Additionally, the uneven cost of living across states complicates efforts to set a national poverty line.
Step-by-step explanation:
Many American families, including those in the middle class, receive some form of government assistance. To provide some specifics, approximately 40,000,000 individuals were receiving food assistance over a two-year period, as reported by the United States Department of Agriculture in 2014. The issue of government assistance is complex, and the federal government needs to carefully consider whether to allocate $70 or $700 per month to aid these families. This decision should be made where the marginal benefit exceeds the marginal cost.
In examining income disparities, the U.S. Census Bureau reported that nine million U.S. families were classified as below the poverty line in 2014, indicating a significant reliance on government assistance. Due to the variety in cost of living across different states, setting a uniform poverty line is challenging and controversial, with median household incomes ranging significantly across states, such as $102,552 in New Jersey and $57,132 in Mississippi in 2013.
Government programs such as Medicaid, food aid, and federal housing assistance are crucial for low-income families, as they provide support that is not accounted for in cash income determinations for poverty. In regard to the scope of government aid, these programs have a notable impact on the overall number of families receiving assistance beyond the traditional income metrics.