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“Who Are We, Anyway?”: A Moral Issue Of How We Choose To Define Ourselves As A Country

Something extraordinary is happening at our southern border. Thousands of children, most unaccompanied by adult relatives, are crossing from Mexico and immediately turning themselves in to the Border Patrol. They come principally from Guatemala, El Salvador and Honduras.

What must be going on in those countries that impels their most precious legacy, their children, to make such a journey? What are we, as a nation, going to do about it?

Reports from Central America center on two issues: poverty and gang violence. Poverty in that region is not new, nor has it ever been the stimulus for a mass migration of children. Gang violence has increased, driven in part by the trade in illegal drugs and perhaps by some success in Mexico in confronting drug gangs.

The more important question is what we’re going to do about it? Texas Governor Perry advocates a military response, perhaps by the National Guard. What exactly does he anticipate that the National Guard would do? Are they supposed to shoot at children as they cross a bridge or a river? Doesn’t sound right to me.

The Administration’s response to the problem is financial and legal. Appropriate 3.7 billion dollars to house these children until their cases can be heard by a (hopefully more efficient) adjudication process to determine whether each child is legitimately a refugee. But there aren’t lawyers to represent most of these children, so the legal process is likely to be a farce.

Some in Congress want to change the applicable laws to make it easier to expel these children without a legal process. I suppose such a course might relieve the government of some costs, but does such a policy square with our values?

The arrival of large numbers of children on our doorstep is not a physical menace to us. Nor is it an unsustainable financial burden. It is not a legal or bureaucratic matter either. Instead, it is a moral issue of how we choose to define ourselves as a country.

We need to move these children out of mass holding pens and into homes of people who will care for them and raise them. Then we can let the legal process grind away.

 

By: Joseph B. Kadane, Leonard J. Savage University Professor of Statistics and Social Sciences, Emeritus, at Carnegie Mellon University; The Huffington Post Blog, July 17, 2014

July 18, 2014 Posted by | Border Crisis, Immigration Reform, Poverty | , , , , , , | Leave a comment

“The Three Biggest Right-Wing Lies About Poverty”: So Why Do So Many Right-Wing Republicans Tell These Lies?

Rather than confront poverty by extending jobless benefits to the long-term unemployed, endorsing a higher minimum wage, or supporting jobs programs, conservative Republicans are taking a different tack.

They’re peddling three big lies about poverty. To wit:

Lie #1: Economic growth reduces poverty.

“The best anti-poverty program,” wrote Paul Ryan, the House Budget Committee chairman, in the Wall Street Journal, “is economic growth.”

Wrong. Since the late 1970s, the economy has grown 147 percent per capita but almost nothing has trickled down. The typical American worker is earning just about what he or she earned three decades ago, adjusted for inflation.

Meanwhile, the share of Americans in poverty remains around 15 percent. That’s even higher than it was in the early 1970s.

How can the economy have grown so much while most people’s wages go nowhere and the poor remain poor? Because almost all the gains have gone to the top.

Research by Immanuel Saez and Thomas Piketty shows that forty years ago the richest 1 percent of Americans got 9 percent of total income. Today they get over 20 percent.

It’s true that redistributing income to the needy is politically easier in a growing economy than in a stagnant one. One reason so many in today’s middle class are reluctant to pay taxes to help the poor is their own incomes are dropping.

But the lesson we should have learned from the past three decades is economic growth by itself doesn’t reduce poverty.

Lie #2: Jobs reduce poverty.

Senator Marco Rubio said poverty is best addressed not by raising the minimum wage or giving the poor more assistance but with “reforms that encourage and reward work.”

This has been the standard Republican line ever since Ronald Reagan declared that the best social program is a job. A number of Democrats have adopted it as well. But it’s wrong.

Surely it’s better to be poor and working than to be poor and unemployed. Evidence suggests jobs are crucial not only to economic well-being but also to self-esteem. Long-term unemployment can even shorten life expectancy.

But simply having a job is no bulwark against poverty. In fact, across America the ranks of the working poor have been growing. Around one-fourth of all American workers are now in jobs paying below what a full-time, full-year worker needs in order to live above the federally defined poverty line for a family of four.

Why are more people working but still poor? First of all, more jobs pay lousy wages.

While low-paying industries such as retail and fast food accounted for 22 percent of the jobs lost in the Great Recession, they’ve generated 44 percent of the jobs added since then, according to a recent report from the National Employment Law Project.

Second, the real value of the minimum wage continues to drop. This has affected female workers more than men because more women are at the minimum wage.

Third, government assistance now typically requires recipients to be working. This hasn’t meant fewer poor people. It’s just meant more poor people have jobs.

Bill Clinton’s welfare reform of 1996 pushed the poor into jobs, but they’ve been mostly low-wage jobs without ladders into the middle class. The Earned Income Tax Credit, a wage subsidy, has been expanded, but you have to be working in order to qualify.

Work requirements haven’t reduced the number or percent of Americans in poverty. They’ve merely increased the number of working poor — a term that should be an oxymoron.

Lie #3: Ambition cures poverty.

Most Republicans, unlike Democrats and independents, believe people are poor mainly because of a lack of effort, according to a Pew Research Center/USA Today survey. It’s a standard riff of the right: If the poor were more ambitious they wouldn’t be poor.

Obviously, personal responsibility is important. But there’s no evidence that people who are poor are less ambitious than anyone else. In fact, many work long hours at backbreaking jobs.

What they really lack is opportunity. It begins with lousy schools.

America is one of only three advanced countries that spends less on the education of poorer children than richer ones, according to a study by the Organization for Economic Cooperation and Development.

Among the 34 O.E.C.D. nations, only in the United States, Israel and Turkey do schools serving poor neighborhoods have fewer teachers and crowd students into larger classrooms than do schools serving more privileged students. In most countries, it’s just the reverse: Poor neighborhoods get more teachers per student.

And unlike most OECD countries, America doesn’t put better teachers in poorly performing schools,

So why do so many right-wing Republicans tell these three lies? Because they make it almost impossible to focus on what the poor really need – good-paying jobs, adequate safety nets, and excellent schools.

These things cost money. Lies are cheaper.

 

By: Robert Reich, The Robert Reich Blog, June 13, 2 014

June 15, 2014 Posted by | Poor and Low Income, Poverty, Republicans | , , , , , , , | 1 Comment

“They Get You Coming And Going”: In America, Being Poor Can Be An Expensive Proposition

Today I came across this very interesting, albeit depressing, bit of data. It’s an analysis by a travel site called Hopper that shows that it costs more to fly in states that have the lowest median incomes.

For example, the study found that in Mississippi, the poorest state, a “good deal” round-trip flight costs about $400, while in Maryland, the state with the highest income, an equivalent ticket costs around $300. The researchers also found that “typical round-trip airfare declines by $2.30 for every additional $1000 in median household income.” The reasons for the increased prices in the poorer states include “average distance traveled, demand density, and airline competition.” Presumably, there’s less demand and less airline competition in poor areas of the country because people there have less money for leisure travel, and also because those locales have less economic development and thus less business travel.

The higher price of air travel for low-income folks is yet another data point that paints a bigger picture: in America, being poor can be an expensive proposition. There are countless, painful examples of this. Food and other basic items tend to cost more in poor neighborhoods. The poor lack access to credit and so are easy prey for payday lenders charging exorbitant interest rates. Poor people are more apt to bounce checks; hello, fees for insufficient funds! There are also late fees for credit card payments — you know, the kind of thing listed in print so fine you need a magnifying glass to be capable of reading about it. But my personal favorites are those extra charges they tack on for restoring utilities they shut off because you couldn’t pay your bill on time in the first place. “They get you coming and going,” as my old man used to say.

In her classic book, Nickel and Dimed, Barbara Ehrenreich described a host of other expensive indignities that plague the working poor. For example, many of her low-wage co-workers were living in hotel rooms, which actually were far costlier, on a monthly basis, than local apartments. But the workers couldn’t move into the apartments because they lacked the month’s rent plus security deposit the landlord required. Many low-wage jobs also require uniforms, the cost of which comes out of the worker’s paycheck, or cars, which the workers are expected to maintain themselves.

There are even darker examples. I wonder how many Americans have put off going to the doctor because they lacked health insurance, sought treatment only when their symptoms were advanced, and ended up being bankrupted by medical bills as a result.

Many of the examples I’ve cited in this post could be greatly improved by some well-targeted regulatory fixes. The rights of workers and consumers against employers, the banks, and the credit card companies need to be vigorously championed, and in some cases, re-invented for our new digital era. There’s no earthly justification other than greed for the $35 bank overdraft ripoff, or the cell phone company gouging you to restore your service because your payment is late. It’s also long past time we bring re-regulation to the airlines. A more regulated airline industry might help bring down fares in certain overpriced markets. Our 30-year old experiment with airline deregulation has hardly been a rousing success — read the excellent 2012 Washington Monthly magazine article by Phillip Longman and Lina Khan for more information on this score.

In addition to more consumer regulation, we also need a much higher minimum wage and a far more generous safety net for poor people in this country. If poor people had more economic resources to begin with — if they simply had enough money to pay their bills on time, and to save a little money for a rainy day — they would never be forced to pay such an outrageously high price for being poor.

 

By: Kathleen Geier, Washington Monthly Political Animal, May 3, 2014

May 4, 2014 Posted by | Economic Inequality, Poor and Low Income, Poverty | , , , , , , , | 1 Comment

“Charity Is Not A Substitute For Justice”: Paul Ryan Still Doesn’t Understand The Scale Of The Poverty Problem

Earlier today, House Budget Committee Chair Paul Ryan (R-Wis.) continued his study of poverty with a hearing entitled, “A Progress Report on the War on Poverty: Lessons from the Frontlines.” Featuring witnesses from several poverty-fighting non-profits, Rep. Ryan styled the hearing as a “listening exercise” to hear about the strategies these charities and non-profits use to help alleviate poverty on the local level.

While it is admirable that Rep. Ryan gave a platform for community leaders to share their stories, he seems to have no sense of the scale of the problem before him. Indeed, Rep. Ryan’s veneration for the work of private charity is quite the contrast with his opinion of the federal government’s anti-poverty programs, which he has disparaged as “duplicative,” “complex,” and “ineffective.” However, for as much good work as it does, private philanthropy has well-known biases, as charitable donations tend to flow disproportionately to more glamorous causes, and often dry up during business cycle downturns—just when they’re needed most. In short, while individual charities and non-profits do incredible work to help our communities, they lack the ability to create widespread change; only the federal government has the resources to help alleviate poverty at the scale that is required.

While all of the witnesses who appeared at the hearing—including, ironically, both witnesses called by the Republican majority—represent organizations that receive federal funding, only one of the witnesses, Marian Wright Edelman of the Children’s Defense Fund, used her time to point out the importance of government programs. She cited a 2013 Columbia University study that found that government programs such as the Earned Income Tax Credit (EITC); Supplemental Nutrition Assistance Program (SNAP, or food stamps); the Women, Infants, and Children nutrition program (WIC); and Supplemental Security Income (SSI) reduce poverty by approximately 40 percent. Kathleen Short of the U.S. Census Bureau has also performed research on this topic, finding that government programs such as WIC, SNAP, and EITC, among others, all had a significant impact on reducing the poverty rate. In addition, Feeding America estimates that private charities make up just 4 percent of all food assistance resources in the U.S., with federal programs such as SNAP comprising the other 96 percent.

But it seems that Rep. Ryan doesn’t understand the unique role only the government can play in helping lift citizens out of poverty, as his recent FY15 budget proposal cuts billions from poverty-fighting programs, as Matthew Yglesias over at Vox recently pointed out. We also analyzed the proposed Ryan budget and projected that, if enacted, Rep. Ryan’s huge cuts would have a negative impact on economic growth and cost the labor force millions of jobs.

If Paul Ryan truly wanted to help the poor, he would not just rely on local leaders and private charities to reduce poverty in our country; instead, he would propose a budget that supports social safety nets and poverty-fighting programs.  He would support increasing the minimum wage, which would give 27.8 million Americans a raise and help the parents of one in five children.  And he would vote to extend Emergency Unemployment Insurance, which would help unemployed Americans in our weak labor market and even generate jobs.

Marian Wright Edelman got things right during the hearing when she said that “all of our charity is not a substitute for justice and a fair allocation of public resources.” Unfortunately, the House majority seems to think that publicly-funded programs must be ineffective just because they are publicly-funded—despite all evidence to the contrary.

 

By: John Smith and Alyssa Davis, Economic Policy Institute, April 30, 2014

 

May 3, 2014 Posted by | Paul Ryan, Poor and Low Income, Poverty | , , , , | Leave a comment

“Poverty, Policy, And Paul Ryan”: The Emperor In The Empty Suit Has No Clothes

If it seems every few months brings us another installment in the “Paul Ryan cares about poor people” series, it’s not your imagination. In November, the Washington Post helped get the ball rolling with a front-page article on the House Budget Committee chairman, celebrating the congressman for his efforts “fighting poverty and winning minds.”

The gist of the piece was that the far-right congressman is entirely sincere about using conservative ideas to combat poverty.

In December, BuzzFeed’s McKay Coppins ran a related piece, and today Coppins published another: Ryan is “trying to challenge the notion that his party is out of touch with poor people the old-fashioned way: by talking to some.”

The men begin filing into the Emmanuel Missionary Baptist Church in Indianapolis around 5:30 a.m. They are ex-convicts and reformed drug dealers, recovering addicts and at-risk youth: a proud brotherhood of the city’s undesirables. Some of them like to joke that if he were around today, Jesus would hang out with reprobates like them. On this cold April morning, they’re getting Paul Ryan instead.

Ryan has been here once before, about a year ago, but most of the congregants rambling in through the front door don’t appear to recognize the wiry white guy loitering in the lobby of their church. He is sporting khakis and a new-haircut coif, clutching a coffee as he chats with three besuited associates. A few parishioners come up and introduce themselves to him, but most pass by, exchanging quizzical glances and indifferent shrugs.

After several minutes, a sturdy, smiling pastor named Darryl Webster arrives and greets their guest of honor. “I appreciate you coming,” Webster says as he clasps the congressman’s hand. “You know, when you get up this early in the morning, it’s intentional.”

“Usually when I get up this early, I get up to kill something,” Ryan cracks.

It was a hunting joke.

In any case, Coppins’ lengthy article reads quite nicely: the Wisconsin Republican really has invested considerable time and energy in going to inner cities, meeting with community leaders, and talking to people who’ve struggled with poverty. If someone who’s otherwise unfamiliar with Ryan reads the 7,000-word piece and nothing else, he or she would likely come away with the sense that his interest in helping poor communities is sincere.

The trouble, however, are the parts of Ryan’s vision and policy agenda that Coppins neglected to mention.

For example, just last month, Ryan published a lengthy audit of sorts, criticizing federal efforts to combat poverty. It generated some attention, though what was largely overlooked was the fact that the Republican congressman was soon accused of misrepresenting much of the academic research he cited in his report.

Soon after, Ryan suggested low-income children who rely on the school-lunch program aren’t treasured the way wealthier children are, relying on an anecdote that wasn’t true anyway.

Then earlier this month, Ryan released a new budget blueprint that cut spending $5.1 trillion, specifically targeting public services that benefit – you guessed it – those on the lowest end of the socio-economic scale. Most notably, the Republican’s plan focused on slashing investments in health coverage, food assistance, and college affordability.

My point is not to question Paul Ryan’s sincerity. I don’t know him personally and I have no reason to question whether he means what he says about trying to combat poverty his own way.

Rather, my point is put aside his rhetoric and question the efficacy of his policy proposals. And on this, Jared Bernstein recently said of Ryan, “the emperor in the empty suit has no clothes,” adding:

Ryan Poverty Plan

1. Cut spending on the poor, cut taxes on the wealthy

2. Shred safety net through block granting federal programs

3. Encourage entrepreneurism, sprinkle around some vouchers and tax credits

4. ???

5. Poverty falls

Matt Yglesias added this morning, “I admit that this way of looking at things is a bit less colorful than following Ryan around a bunch of visits to low-income neighborhoods. But to the extent that you want to know how an increase in political power for Ryan and his allies is likely to impact the lives of American citizens, it’s worth looking at these things. His big job in politics is to write budgets. And his big budget idea is that rich people should pay lower taxes, middle class and working class people should pay more taxes, and poor people should get less food, medicine, and college tuition.”

 

By: Steve Benen, The Maddow Blog, April 28, 2014

April 29, 2014 Posted by | Paul Ryan, Poverty | , , , , , , , | Leave a comment