Final answer:
A family of three earning $20,000 annually would technically be above the 2012 federal poverty line but may still face challenges in meeting basic needs due to the cost of living variations and additional expenses not accounted for by the poverty threshold.
Step-by-step explanation:
Understanding the Poverty Threshold
If a family of three earned $20,000, assessing whether they would be able to make ends meet given the official poverty threshold requires a look at how the poverty line is determined and the actual costs of basic necessities. The U.S. federal poverty line takes into account cash income but does not include benefits from government programs such as Medicaid or federal housing assistance. In 2012, a family of three was considered to be living in poverty if they earned around $17,916 per year. Therefore, based on this threshold, a family of three earning $20,000 would be above the poverty line. However, this does not automatically mean they can comfortably afford all of their basics needs like food, rent, healthcare, and transportation, especially when considering cost-of-living differences across states.
The concept of a poverty line is complex. For a family of three, a $20,000 income could be very close to the edge, particularly when basic necessities in some areas may have higher costs. It is important to remember that while a family might be above the federal poverty line, they may still struggle with affording basic necessities, especially if they live in states with a higher cost of living such as New Jersey compared to states like Mississippi.