What trend was observed regarding poverty in the 1990s?

The observation that more people fell under the poverty line in the 1990s is significant within the context of economic trends during that decade. Although the overall economy experienced considerable growth and low unemployment rates, this period also saw rising income inequality, which meant that while some individuals and families benefited greatly, others did not experience the same upward mobility. The economic growth was unevenly distributed, leaving certain populations, particularly minorities and low-skilled workers, vulnerable and further entrenched in poverty.

Additionally, factors such as welfare reform, which introduced stricter requirements for government assistance and aimed to reduce dependency on social programs, may have contributed to higher poverty rates. These developments reflected the complexities of the economic landscape in the 1990s, demonstrating that prosperity was not equally shared among all segments of the population. This trend illustrates the multifaceted nature of economic growth and poverty, emphasizing that an expanding economy does not necessarily equate to reduced poverty for all.