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Poverty in the Land of the Free

February 25th, 2010 · 15 Comments · Blogs From Left to Right, Economics, Food, Politics

poverty americaIn a column on the Huffington Post, Leo Hindery, Jr., a former CEO, writes that 100 million people in America are at or below the official poverty line, which itself is an absurd, unrealistic measure.

I agree that poverty eradication should be a, if not the, top priority in this country.  But how?  I, for one, don't think the government can do this (partly because even Congress's half-hearted efforts at a health care bill are lambasted as "socialist" by the reactionary right).

If you think it can, I'd like to hear from you.

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15 Comments so far ↓

  • Dan

    In my opin­ion, cap­i­tal­ism can­not work with­out an upper class and a lower class. Given that vir­tu­ally all those in gov­ern­ment and upper man­age­ment are mem­bers of the upper class, they will never act to erad­i­cate the lower class — why would they? It wouldn’t be in their best inter­est to do so. On a global scale, this is the way the US acts toward many for­mer third-world coun­tries. We hem and haw about poverty and star­va­tion, and do noth­ing. Why? Because we know damn well that if we truly helped raise up the rest of our world, the rel­a­tive posi­tion of dom­i­nance that the US cur­rently enjoys would decline, and we don’t want that. We NEED to have the major­ity of the nations poor, just as the upper class NEEDS to have the major­ity of the peo­ple (rel­a­tively) poor.

    In my opin­ion, this is the nat­ural human con­di­tion. For as long as there have been peo­ple, a major­ity of the peo­ple have been poor. In ancient times, most peo­ple were poor farm­ers, liv­ing a hard­scrab­ble, day-to-day exis­tence. In the Mid­dle Ages, a major­ity of the peo­ple were peas­ants, and still farm­ing. Dur­ing the Indus­trial Rev­o­lu­tion, most of the peo­ple were the poor labor­ers in the fac­to­ries. Through­out the twen­ti­eth cen­tury as well, the major­ity of peo­ple were still labor­ers, ser­vice peo­ple, and other low-wage earn­ers. This con­tin­ues today, and will con­tinue for the future.

    There is a lim­ited amount of wealth avail­able in the world, and those who have a major­ity of it will fight like hell to keep it. It’s human nature, one of Sam’s favorite straw men, after all, to keep what’s yours at the expense of oth­ers. Those who do not have the wealth are con­stantly fight­ing like hell to get it. This, again, is human nature. I don’t think it’s ever going to change. And that’s just the way it is.  (Quote)

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  • Dan

    That is not to say, how­ever, that there is noth­ing that can be done. To me, the pri­mary method of lev­el­ing the play­ing field starts with the pri­mary edu­ca­tional sys­tems. Right now, the way it works in most states is that school dis­tricts are funded by local munic­i­pal taxes. This, of course, ensures that schools in wealthy areas are bet­ter funded than those in poorer areas. Bet­ter funded schools have supe­rior facil­i­ties as well as more expe­ri­enced and bet­ter teach­ers. Unsur­pris­ingly, the stu­dents at these schools receive a bet­ter edu­ca­tion. Stu­dents that receive a bet­ter edu­ca­tion are more likely to attend col­lege, be pre­pared for col­lege, and suc­ceed once at col­lege, lead­ing to higher rates of col­lege grad­u­a­tion. As has been men­tioned many, many times, hav­ing a col­lege degree is a pre­req­ui­site to most mid­dle– and upper-class jobs. As you can see, the edu­ca­tional sys­tem, as cur­rently con­structed, per­pet­u­ates the struc­ture of the haves and the have-nots.

    So what can be done? How about this. Take all the munic­i­pal taxes for the entire state, and redis­trib­ute the funds equally across all school dis­tricts. This would elim­i­nate the inequal­ity present in school dis­tricts based entirely on local eco­nom­ics. Stu­dents from poor areas would end up with bet­ter schools, and stu­dents from wealthy areas would end up with worse schools. At least it would give stu­dents a bet­ter chance at a fair begin­ning. Is this a per­fect solu­tion? Of course not. But in order to begin erad­i­cat­ing gen­er­a­tional poverty, it has to begin with edu­ca­tion. It has to. There is no other way for it to begin.

    I wel­come other thoughts as well. If you care about human rights, even a lit­tle bit, you must real­ize that giv­ing chil­dren an equal oppor­tu­nity is the absolutely least we can do for them. Chil­dren are our most pre­cious resource. To have them begin their lives at a vir­tu­ally uncon­quer­able dis­ad­van­tage is a tragedy.  (Quote)

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  • Mike

    The 100 mil­lion is actu­ally below 200% of the poverty line.

    One step in the right direc­tion would be for con­gress to pass laws to begin tax­ing accu­mu­lated wealth in ways that shift the tax bur­den from the pro­duc­tive younger gen­er­a­tion and those actu­ally pro­duc­ing things to those who have amassed for­tunes. This should encour­age addi­tional con­sump­tion by the those with money to spend, rais­ing demand for labor, increas­ing wages, and lift­ing many out of poverty while reduc­ing the need for the poor to become fur­ther in debt to those with wealth.  (Quote)

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  • Mike

    Dan — the prob­lem I have with sim­ply throw­ing more money at edu­ca­tion is that while there may be an issue with the qual­ity of an edu­ca­tion in many poor areas that could be fixed with more money, this isn’t going to fix the prob­lem of the atti­tudes towards edu­ca­tion, and that is a prob­lem that needs to be addressed at home. Look at our own high school — I don’t think any­one is going to claim that it is any­where close to a top school, but for those of us who actu­ally showed up to learn and lis­ten to what was being taught, we could get a very good edu­ca­tion that pre­pared us for col­lege and beyond.  (Quote)

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  • Sam Scott

    Dan,

    cap­i­tal­ism can­not work with­out an upper class and a lower class.

    The unfor­tu­nate real­ity is that soci­ety will always have an upper, mid­dle, and lower class. There will always be smart peo­ple; there will always been dumb peo­ple. There will always been strong peo­ple; there will always be weak peo­ple. There will always be peo­ple who make choices that make them rich; there will always be peo­ple who make choices that keep them poor. There will always be peo­ple who will be rich through no effort of their own; there will always be peo­ple who will be poor through bad luck no mat­ter how much they try. This is the human con­di­tion — just like there will always be smaller cat­tle in fields that are more likely to fall prey to predators.

    This is not to say that those who are advan­taged will not use every means nec­es­sary to main­tain that advan­tage. But it is nat­ural. Nature is neu­tral; it is nei­ther bad nor good. The duty of a moral soci­ety is to mit­i­gate this dif­fer­ence as much as pos­si­ble with­out harm­ing soci­ety as a whole.

    Because we know damn well that if we truly helped raise up the rest of our world, the rel­a­tive posi­tion of dom­i­nance that the US cur­rently enjoys would decline, and we don’t want that. We NEED to have the major­ity of the nations poor, just as the upper class NEEDS to have the major­ity of the peo­ple (rel­a­tively) poor.

    There is a lim­ited amount of wealth avail­able in the world

    Just because the dom­i­nance of a coun­try declines rel­a­tive to the rest of the world does not mean that it must decline in nom­i­nal terms. Hun­dreds of years ago — pri­mar­ily before the rise of a mer­chant middle-class — the rich were very rich, and the poor were very poor. But as eco­nomic dis­par­ity declined, the rich became richer at a decreas­ing rate while the poor became richer at an accel­er­ated rate.

    Wealth is not nec­es­sar­ily a zero-sum game. Today, it is not like there are only a mil­lion pieces of gold (or a mil­lion acres of land or a mil­lion dol­lars) in a soci­ety and every­one fights over a lim­ited sup­ply of assets. A pos­i­tive aspect of a fiat cur­rency is that every­one can gain when the money sup­ply increases (as long as infla­tion is kept under control).

    (But just for the record, I pre­dict that the United States will, indeed, decline in both rel­a­tive and nom­i­nal terms in the com­ing years.)

    Stu­dents that receive a bet­ter edu­ca­tion are more likely to attend col­lege, be pre­pared for col­lege, and suc­ceed once at col­lege, lead­ing to higher rates of col­lege graduation.

    We should be encour­ag­ing fewer — not more — teenagers to go to col­lege. The increased demand or a col­lege edu­ca­tion is one of the fac­tors lead­ing to its high cost that is now sad­dling young peo­ple with debt that they may never erase.

    Pic­ture the job mar­ket in a given com­mu­nity. To func­tion, the com­mu­nity needs two doc­tors, two wait­resses, and two garbage-men.

    If every­one goes to col­lege, the demand for labor will not change. The demand for wait­resses and garbage-men will not dis­ap­pear. What will hap­pen is that you’ll merely have two wait­resses and two garbage men with col­lege degrees and student-loan debt.

    Rather, we should encour­age more stu­dents to acquire tech­ni­cal, prac­ti­cal edu­ca­tions if they are not nat­u­rally suited to study­ing Plato. And there would be noth­ing wrong with that. Part of the prob­lem is that soci­ety views cubical-dwellers as “bet­ter” than mechan­ics. And that’s a shame.

    Take all the munic­i­pal taxes for the entire state, and redis­trib­ute the funds equally across all school dis­tricts. This would elim­i­nate the inequal­ity present in school dis­tricts based entirely on local economics.

    This is a philo­soph­i­cal issue: What is more impor­tant for a soci­ety: ensur­ing that gifted stu­dents suc­ceed (and ben­e­fit soci­ety) or that lower-potential stu­dents do not fail (and be a drain on soci­ety)? Fund­ing for edu­ca­tion is a zero-sum game with one allo­cates a scarce bud­get. I don’t really have an answer; I’m just pos­ing the question.

    This com­ment and the one fol­low­ing might not make sense. I’m writ­ing on a stream-of-consciousness level at 7:30 a.m. after hours of work­ing and watch­ing the Olympics…  (Quote)

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  • Sam Scott

    Mike,

    Look at our own high school — I don’t think any­one is going to claim that it is any­where close to a top school, but for those of us who actu­ally showed up to learn and lis­ten to what was being taught, we could get a very good edu­ca­tion that pre­pared us for col­lege and beyond.

    Exactly. I don’t really know how good our high-school was com­pared to oth­ers in gen­eral nation­wide (espe­cially since we were essen­tially sequestered in hon­ors classes with the same group of peo­ple), but the fact remains that we were study­ing physics, writ­ing Model U.N. posi­tion papers, and edit­ing the school news­pa­per while oth­ers were get­ting drunk and preg­nant at par­ties in corn­fields, smash­ing the lux­ury cars they received from their par­ents, or killing their erstwhile-smart brains with drugs.

    If par­ents, friends, and soci­ety do not instill the right val­ues in a stu­dent, an open check­book will do noth­ing.  (Quote)

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  • Sam Scott

    Jeff,

    writes that 100 mil­lion peo­ple in Amer­ica are at or below the offi­cial poverty line, which itself is an absurd, unre­al­is­tic measure.

    I recall a “West Wing” episode in which some­one asks the pres­i­dent, “Do you want more or fewer poor peo­ple?” He says, “Fewer.”

    So the aides reject a pro­posal that would reclas­sify the poverty line to make it more real­is­tic (and also increase the num­ber defined as “poor”).

    It’s not quite the same thing, but it com­mu­ni­cates the point that sta­tis­tics are, well, sta­tis­tics.  (Quote)

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  • Jeff Guevin

    Sam,

    Indeed, sta­tis­tics can lie. But, let’s face it, a fam­ily of four liv­ing on $21,000/year is poor.

    Mike, I’ll admit the error, but it hardly changes my point. It’s hard enough for two peo­ple to get by on $42,000/year, let alone four.

    All, I see a trend in this con­ver­sa­tion towards talk­ing about class. I want to clar­ify: I’m not talk­ing about class, I’m talk­ing about poverty.

    Indeed, the U.S. – any coun­try – needs garbage­men, postal work­ers, jan­i­tors, hotel maids, etc. These are “lower class” jobs. The prob­lem is that while a jan­i­tor in the 1950s could have a house, a car, and a fam­ily, today he can barely afford the neces­si­ties of life. The cost of liv­ing has out­paced wages for decades now, and that means more abject poverty. Still, he has a job.

    It’s those with­out jobs and with no hope of find­ing jobs that are the “poor.” As Sam notes, there are many rea­sons for this poverty. I per­son­ally think it has a lot to do with greed and dis­crim­i­na­tion, but I won’t force that down people’s throats.

    Dan, Ver­mont actu­ally has done what you sug­gest. We still have pock­ets of poverty in the same places you’d expect: rural areas and run-down cities. Fur­ther, Kenya insti­tuted uni­ver­sal edu­ca­tion long ago. Where did it get them?

    Although I do believe every child has a right to a basic edu­ca­tion, throw­ing money at the prob­lem, as Mike says, isn’t going to solve it. Good teach­ers in decent facil­i­ties make a dif­fer­ence, and many if not most good teach­ers don’t want to teach in poor areas – no mat­ter how much you are will­ing to pay them.  (Quote)

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  • Mike

    I think we need a real­ity check on what poverty really is. 42K a year — a fam­ily of 4 can absolutely live off that, maybe not in Man­hat­tan, but in the mid-west it is more than achiev­able. So you live in an apart­ment, you don’t have a cell phone, or cable TV, and you take your kids to the library to do research on the inter­net instead of hav­ing those lux­u­ries at home. Is that poverty?  (Quote)

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  • Dan

    Dan — the prob­lem I have with sim­ply throw­ing more money at edu­ca­tion is that while there may be an issue with the qual­ity of an edu­ca­tion in many poor areas that could be fixed with more money, this isn’t going to fix the prob­lem of the atti­tudes towards edu­ca­tion, and that is a prob­lem that needs to be addressed at home.”

    I agree, that the atti­tudes toward edu­ca­tion need to be addressed at home. My ques­tion: if you don’t start by edu­cat­ing the youth of the impor­tance of school, how do you start? I merely posit that young, mal­leable minds are more likely to be recep­tive of a par­a­digm shift as regards edu­ca­tion than their par­ents, grand­par­ents, and other older rel­a­tives. I firmly believe that at least attempt­ing to level the edu­ca­tional play­ing field is essen­tial in pro­vid­ing equal human rights to chil­dren. No, Sam, I’m not talk­ing about col­lege: I’m talk­ing about fin­ish­ing high school. I hope you would at least agree that a high school diploma (or GED) is impor­tant in the workforce.

    Just because the dom­i­nance of a coun­try declines rel­a­tive to the rest of the world does not mean that it must decline in nom­i­nal terms. Hun­dreds of years ago — pri­mar­ily before the rise of a mer­chant middle-class — the rich were very rich, and the poor were very poor. But as eco­nomic dis­par­ity declined, the rich became richer at a decreas­ing rate while the poor became richer at an accel­er­ated rate.”

    I agree. Unques­tion­ably, the vast major­ity of the world’s pop­u­la­tion is far, far bet­ter off than it was a mere cen­tury ago. But, and this is the key, the US still enjoys a posi­tion of wealth rel­a­tive to other nations. Using the mea­sure of pur­chas­ing power par­ity per capita (basi­cally, the GDP of coun­try adjusted for cost of liv­ing), you can see this clearly. USA PPP (as of 2008 — fig­ures pro­vided cour­tesy World Bank): $46,716. World­wide PPP: $10,415. The US, in other words, has, ON AVERAGE, 4.5 times the wealth per per­son as the aver­age per­son worldwide.

    This is not to say that those who are advan­taged will not use every means nec­es­sary to main­tain that advan­tage. But it is natural.”

    I agree with this as well. And this is the key to my point above (way, way above): the US will fight like hell to main­tain their rel­a­tive wealth vis-a-vis the rest of the world. It’s only nat­ural, as you agree, to use every means nec­es­sary to main­tain that advan­tage. This, of course, is why the US won’t help out third world coun­tries. This, of course, is why the wealthy won’t help out the poor. Why should they? It goes against human nature.  (Quote)

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  • Dan

    It’s those with­out jobs and with no hope of find­ing jobs that are the “poor.” As Sam notes, there are many rea­sons for this poverty.”

    Yes there are. I work as a direc­tor of a home­less shel­ter in Aurora, IL, one of the poorer com­mu­ni­ties in the Chicagoland area. I see the des­per­ate poverty that dri­ves peo­ple to home­less­ness. I see many of the causes of poverty. The include, but (of course) are not lim­ited to: sub­stance abuse, alco­hol abuse, lack of edu­ca­tion, crim­i­nal his­tory, domes­tic vio­lence, improp­erly diag­nosed men­tal health sit­u­a­tions, poor phys­i­cal health, and more. But the far and away num­ber one cause of home­less­ness: gen­er­a­tional poverty.

    Gen­er­a­tional poverty can be defined as fol­lows: “The cycle(s) of poverty has been defined as a phe­nom­e­non where poor fam­i­lies become trapped in poverty for at least three gen­er­a­tions. These fam­i­lies have either lim­ited or no resources. There are many dis­ad­van­tages that col­lec­tively work in a cir­cu­lar process mak­ing it vir­tu­ally impos­si­ble for indi­vid­u­als to break the cycle. This occurs when poor peo­ple do not have the resources nec­es­sary to get out of poverty, such as finan­cial cap­i­tal, edu­ca­tion, or con­nec­tions. In other words, poverty-stricken indi­vid­u­als expe­ri­ence dis­ad­van­tages as a result of their poverty, which in turn increases their poverty. This would mean that the poor remain poor through­out their lives. This cycle has also been referred to as a “pat­tern” of behav­iors and sit­u­a­tions which can­not eas­ily be changed.”

    I see this every day. Most of my guests are from long lines of peo­ple in poverty. Their par­ents were poor, their grand­par­ents were poor, and so on. Most of my guests are not in the dif­fer­ent real­ity of “sit­u­a­tional poverty”: poverty caused by one or more unex­pected fac­tors (job loss, med­ical bills, car acci­dent, etc.). These folks gen­er­ally have lower-middle-class back­grounds, includ­ing edu­ca­tion, employ­ment his­tory, and con­nec­tions, and, with a lit­tle help, can find their way back to where they came from.

    Those who are in gen­er­a­tional poverty are far, far harder to raise up. I attended a con­fer­ence recently that dis­cussed the dif­fer­ences in men­tal­ity between the poor, mid­dle, and upper classes. It was absolutely fas­ci­nat­ing, and incred­i­bly illu­mi­nat­ing. I can’t recount all of the details here, but, suf­fice it to say, the atti­tudes of the poor are fun­da­men­tally dif­fer­ent from those of the mid­dle (and upper) class. It is these atti­tudes that must be retaught in order for peo­ple to move up to mid­dle class. They lit­er­ally have to be taught the social norms expected of them so that they might fit into mid­dle class jobs, schools, and social envi­ron­ments. This it what is so hard. This is what needs to be taught to peo­ple. This is PRECISELY what is not being taught to them, either by their fam­i­lies, teach­ers, or other author­ity figures.

    Do I have an answer? Of course not. But I strive day-by-day to make a small dif­fer­ence in people’s lives. I can only hope that if my efforts result in even one per­son ris­ing out of gen­er­a­tional poverty, then my day will have been a suc­cess. That is what dri­ves me, each and every day, to do my absolute best at my career.

    By the way, when I talk about poverty, I agree with Mike. Even my guests that do receive some sort of SSI or SSDI income gen­er­ally receive no more than $1000 per month per per­son. And you know what? You can get by on that. You can find a $300 apart­ment, use pub­lic trans­porta­tion, do with­out some “neces­si­ties” as men­tioned by Mike — cell phone, tele­vi­sion, etc. — and do okay. And that’s on $12,000 a year. Of course, if you had a wife and two kids, your expenses would go up. But not that much. And not to $42,000. And this, of course, is in a sub­urb of a major city. If you went fur­ther out, into more rural areas, you can find hous­ing for much less than that. Is it a great life? No — why do you think we’re all wring­ing our hands about poverty? But you can cer­tainly sur­vive on it.  (Quote)

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  • Dan

    Dan, Ver­mont actu­ally has done what you sug­gest. We still have pock­ets of poverty in the same places you’d expect: rural areas and run-down cities.”

    Yes, it has. And it is going to take a long, long time for the results to come in. They have had the finan­cial equal­ity of schools on the books for what, 12 years now? The stu­dents that started receiv­ing the increased fund­ing haven’t even grad­u­ated high school yet. Their test scores might not have improved very much in rela­tion to the wealth­ier stu­dents, but their over­all atti­tudes might have done so. If even some of them now value edu­ca­tion more than they might have oth­er­wise, then their chil­dren will be raised in an envi­ron­ment in which edu­ca­tion is more impor­tant. This slow, grad­ual pro­gres­sion may, in two or three gen­er­a­tions, show results. This is not an overnight tran­si­tion, as I have said before. This is chang­ing the mind­set of an entire seg­ment of the pop­u­la­tion. This may take 50 or 100 years, but people’s atti­tudes can be changed. And I believe they will.  (Quote)

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  • Jeff Guevin

    Dan, per­haps you are right that the effects have yet to be seen, but as some­one who is very close to a second-grade teacher, it doesn’t seem that the increase in fund­ing is doing any­thing for the kids still com­ing in.

    Either way, I per­son­ally feel three gen­er­a­tions is too long to wait, and I think that there must be some­thing we can do to change the atti­tudes of young par­ents and their chil­dren caught, as you say, in a cycle of gen­er­a­tional poverty.

    Mere char­ity will not be enough.  (Quote)

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  • Dan

    Like what?  (Quote)

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  • Jeff Guevin

    Dan, note: that’s how I began this dis­cus­sion – I don’t know.  (Quote)

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