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“Embracing Their Inner Ebenezer Scrooge”: The GOP’s Mean-Spirited Hostility Towards Food Stamps

For decades now, the Republican Party has been honing its reputation for hostility toward the downtrodden, the poor, the disadvantaged. While a few of its leaders have tried to either shed that image or to dress it up with a more appealing facade — think George W. Bush’s “compassionate conservatism” — lately the GOP has been enthusiastically embracing its inner Ebenezer Scrooge.

Consider its all-out assault on one of the government’s most venerable programs to assist the most vulnerable, the Supplemental Nutrition Assistance Program, usually known as “food stamps.” Last month, the GOP-dominated House passed an agriculture bill that omitted funding for the food stamp program — partly because the Republican caucus disagreed over whether cuts to the program should be merely harsh or extremely severe. Congressional conservatives have said they also want to include a work requirement and mandatory drug tests for beneficiaries.

Not so long ago, hardliners sought to cloak this sort of cruelty in the language of the greater good: the need to reduce government spending. But last month’s bill didn’t even attempt that pretense: It included billions in agricultural subsidies for wealthy farming interests, including some Republican members of Congress. It was the first time since 1973 that the House of Representatives omitted the food stamp program from the farm bill.

“It sounds to me like we’re in a downright mean time,” said Bill Bolling, founder and executive director of the Atlanta Community Food Bank, which procured and distributed 45 million pounds of donated food and groceries in the last year. He said that his agency has doubled its distribution over the last four years, since the Great Recession devastated household incomes.

The profile of his client base has changed, too, over the last four years, he said. About 20 percent of beneficiaries report that this is the first time they’ve ever asked for assistance from government or charitable programs. Among them are people who once belonged to the secure middle class; some were formerly donors or volunteers at the food bank.

Moreover, Bolling said, about half the people who seek food assistance have jobs.

“They’re keeping their part of the social contract. They are getting up every day and going to a job, maybe two jobs. If a man gets up and goes to work every day, I don’t care what his job is, he ought to be able to feed his family,” he said.

Conservative critics paint a very different picture. They tend to speak contemptuously of those struggling to make ends meet, to describe a lazy “47 percent” who want nothing but handouts, to dismiss those who can’t make ends meet as responsible for their own hard luck.

Some of that hostility toward struggling Americans can be explained by a racial antagonism that presumes that most of them are black or brown. In Us Against Them: Ethnocentric Foundations of American Opinion, University of Michigan professor Donald Kinder and Vanderbilt professor Cindy Kam explain that means-tested programs such as food stamps have long been associated with the black poor. That makes them more likely to be viewed with suspicion by “ethnocentric” whites — those more likely to be antagonistic toward other racial groups.

Kinder and Kam say that public discourse by political “elites” — especially those on the conservative side of the spectrum — has “racialized” means-tested welfare programs. “Programs like … food stamps are understood by whites to largely benefit shiftless black people,” they write.

Those beliefs have persisted even though the Great Recession laid waste to the finances of many white families, too. They account for about 35.5 percent of food stamp recipients. Black Americans are disproportionately represented, but account for only about 23 percent. Latinos account for about 10 percent of recipients, while other racial groups account for smaller percentages, according to government data. (Eighteen percent of food stamp recipients belong to “race unknown.”)

Not that the facts tend to matter in a debate such as this. Nor do common decency and simple compassion hold much sway. If they did, there would be far fewer parents worrying about how to feed their children tonight.

 

By: Cynthia Tucker, The National Memo, September 14, 2013

September 15, 2013 Posted by | GOP, Poverty | , , , , , , , | Leave a comment

“Suffering Under The Weight Of Inequality”: Reaching The Point That Endangers Growth Itself, And That Should Concern Everyone

A report released this week by an economist at the University of California, Berkeley, shows that income inequality in the U.S. economy is at a new high. As the economy struggles in the wake of the Great Recession, income inequality broke records going back nearly 100 years.

According to the study, incomes among the top one percent rose by 31.4 percent between 2009 and 2012, while incomes for everyone else grew just 0.4 percent. The top decile of earners in the economy now captures more than half the total income.

Predictably, the debate rages about fairness. Commentators on the left argue that this income distribution couldn’t possibly be fair to workers, while those on the right suggest that any distribution is inherently fair as long as all Americans have the opportunity to compete to make it to the top.

It is difficult to show that any particular distribution of income is the right place to draw the line between fair and unfair. Let’s leave that question to others and focus solely on the question of whether disparities of this magnitude help or hinder the economy as a whole.

Economists have shifted their position on this issue over time. At one point, most economists agreed that inequality probably helps the economy. Inequality spurs people to work harder. In addition, some inequality is needed to create a pool of concentrated wealth that can be invested to finance the early stages of economic development: harvesting timber, building factories and so on.

However, more recent research suggests that while some inequality is necessary, too much inequality undermines growth: The research shows that the U.S. economy is probably at or near the point where the negative effects of inequality outweigh the positive effects.

Now, inequality dampens growth in three ways:

  • Wealthy people handle their money differently than the rest. They tend to save a much higher percentage of their incremental income, or invest it in fixed assets like vacation homes. These forms of saving and investment do not trickle down to create significant wage income for others. In contrast, incremental money that flows to the middle class and poor people gets spent much more quickly. It’s spent on food, clothing and basic products that are produced in factories and on farms by people who earn wages. Money that flows to the middle class and poor has a multiplier effect, rippling through the economy to create more jobs and income for others. As a result, a shift in income towards the top results in less overall demand.
  • In a nation like ours, where higher education is expensive, greater inequality means that fewer people get the skills they need for well-paying jobs. But as World Bank economist Branko Milanovic writes, “now that human capital is scarcer than machines, widespread education has become the secret to growth.” Facing a less prepared workforce, companies shift research and advanced manufacturing facilities offshore, which further erodes economic growth. The shift increases the chance that the next Facebook will be founded in India or China. Some other country will reap the economic benefit that comes from hosting breakthrough innovation.
  • Other factors beyond the hard costs of higher education are important as well, as inequality rises and class lines harden. Consider two children, both with the same innate potential for accomplishment, one born to a family in the top 1 percent and the other to a family in the bottom 20 percent. The first one will have parents who read to them as a pre-schooler, stimulating his or her brain. The second one, probably not. The first one will grow up surrounded by role models whose hard work brought them success; the second one will grow up surrounded by others whose hard work brought them barely-livable incomes. Is it any wonder that the two children will enter adult life with a different readiness to use their intellect, a different level of motivation and confidence and a different awareness of how to build a successful career?

Two economists, Andrew Berg and Jonathan D. Ostry of the International Monetary Fund, have quantified the impact of inequality on economic growth. In a 2011 article, “Inequality and Unsustainable Growth: Two Sides of the Same Coin?” they examined why some countries enjoy long years of steady economic growth while other countries see their growth trail off after only a few years.

Berg and Ostry found that income inequality is the single most important factor in determining which countries can keep their economies growing. For example, income distribution is more important than open trading arrangements, favorable exchange rates and the quality of the country’s political institutions.

Berg and Ostry go on to measure the extent to which economic growth falls as inequality rises. They gauge inequality using the GINI coefficient, which ranges for 0 – 100. At one extreme, a society where everyone earns exactly the same would have a GINI score of 0. At the other extreme, a society in which one person owned all the wealth would have a GINI score of 100. For economies with GINI below 45, growth can be robust, but once it crosses above roughly 45, growth slumps. The GINI of the U.S. economy is in the low 40’s currently, so we are dangerously close to the point of decline.

Inequality in the U.S. shows no sign of abating, even as the economy recovers. The decline of unions, the pace of globalization, the abundance of workers in many industries and changes in health care and taxes have combined to staunch the earning power of working Americans, even as the economy grows and productivity increases. There are few options, and none that are consistent with the political climate of the time. But the trend is reaching the point that endangers growth itself, and that should concern everyone, regardless of the size of your paycheck.

 

By: David Brodwin, U. S. News and World Report, September 12, 2013

September 14, 2013 Posted by | Economic Inequality, Economic Recovery | , , , , , , , | Leave a comment

“The Rejection Of Reality”: Conservative Claims About Low-Income Excess Are Just Wrong

Are people better off than they were before the recession? By most headline figures they’re not: Poverty and inequality have risen to record levels, median incomes declined. Unemployment has improved marginally, but 37 states have yet to regain their pre-recession job levels.

Conservatives like to push back on claims of rising inequality or worsening poverty by pointing out that their measure of poverty or inequality insufficiently captures the increasing well-being of even the poor. They’re better off, they say, because low and middle-income Americans are living better than they did in the past. These arguments manifest themselves in concern over “Obamaphones” or access to liquor or drugs, and generally recommend policy solutions as odious as drug-testing as a prerequisite for welfare or stricter control over food stamps. As Matt Bruenig aptly pointed out on this blog, even taking these conservative policy solutions at their face value, fraud complaints are spurious. We want poor people to have more money. Programs like food stamps and Medicaid undoubtedly accomplish that.

But let’s dive deeper into whether families are better off. The Census Bureau periodically publishes assessments of well-being. Their most recent iteration, released yesterday, measures well-being comprehensively based on various conditions such as homeownership (or rentership) and housing condition, access to appliances and electronic goods, neighborhood conditions, meeting basic needs to avoid eviction and eat, and ability to get help from families or the community should they need it. Most of the trends in the results aren’t shocking, with extreme differences in situation based on age, sex and race.

Their headline results are sobering, however. How households fared from 2005 to 2011, according to the Census Bureau’s more comprehensive assessment:

Families are having an increasingly difficult time paying basic expenses. From 2005 to 2011, the number of Americans who couldn’t pay rent or afford food climbed from 16.4 to 16.9 million, a 16 percent increase.

Households with unmet essential expenses increased from 16.4 to 20 million. One in five households now experience difficulty meeting basic needs.

Those experiencing food shortages increased from 2.7 to 3.4 million.

A plurality of households lack access to basic appliances. 36 percent of households didn’t have either a washer, dryer, fridge, stove, dishwasher or phone.

There are strong racial correlations to decreased well-being. Only 44 percent of Hispanics reported access to all six basic appliances compared with 71 percent of white households.

So, even conceding that headline stats don’t tell the whole story, conservative arguments fail on their own merits. No, there isn’t an increasing access to basic appliances that would signal a middle-class lifestyle. No, low-income families aren’t better able to meet basic needs like paying rent or purchasing food. Families are worse off because they’re poorer. Making some goods (like phones) marginally less expensive in the face of collapsing incomes and household wealth hasn’t truly improved the plight of low-income workers. Trying to restrict or reduce proven government programs despite these conditions isn’t then a conservative acknowledgement of nuance, it’s the rejection of reality.

 

By: Joe Hines, The American Prospect, September 6, 2013

September 7, 2013 Posted by | Economic Inequality, Poverty | , , , , , , , | Leave a comment

“A New Kind of Union”: Best Hope For Restoring Political Equality Is For The Poor And Middle Class To Organize Politically

The financial challenges low- and middle-income Americans face are daunting. But the poor and middle class are in an equally serious, if less well recognized, political predicament: the government has become almost entirely unresponsive to them.

This a profound political failure. A democracy in which government policy responds to the rich and not to the poor or the middle class is a democracy unworthy of the name.

For several decades now, we have tried to deal with the problem of money in politics with campaign finance regulation, but reform has failed. Political actors, enabled by the Supreme Court, have responded to regulations simply by redirecting their spending in unregulated directions.

The end of campaign-finance reform, however, is not the end of the line. Although we pay too little attention to this fact, there are still sources of power in American politics that are not dependent on wealth. Primary among these is political organization. In fact, the best hope for restoring political equality is to make it easier for the poor and middle class to organize politically.

Throughout much of the 20th century, we had a legal system in the United States that was remarkably successful at promoting just this kind of political organizing. That legal system was labor law, and it is not a coincidence that during these same decades the labor union was able to serve as a highly successful political voice for the lower and middle classes.

Unions, after all, represent workers, nearly all of whom are in the income classes currently lacking effective political representation. Unions turned out their members to vote and consolidated millions of modest contributions into powerful campaign and lobbying operations. Sometimes, unions pushed for politically liberal causes, and sometimes for conservative ones. But when they were powerful, unions were able to insist that government policy respond to the views of the poor and the middle class.

In contemporary America, however, there is a nearly insurmountable impediment to unions’ ability to serve as a collective political voice for workers. It stems from the legal requirement that unions bundle political organization with collective bargaining, which means that in order to take advantage of the union as a form of political organization, workers must organize economically for collective bargaining purposes.

This bundling of functions, an artifact of how unions formed historically, is a major problem for political organizing today. This is true most obviously because managerial opposition to collective bargaining has become pervasive. It is also true because changes in markets have made the practice of collective bargaining difficult. And because substantial numbers of American workers say they do not want to collectively bargain with their employers, traditional unions are not an attractive form of political organization for many.

All of this has contributed to a dramatic decrease in unionization rates, which has in turn played a central role in the declining responsiveness of government.

But what if we unbundle the union and allow workers to organize politically without also organizing for collective bargaining? If we shift our aim away from reviving collective bargaining and toward enabling political organizing by underrepresented groups, we would allow workers to organize “political unions” even when they don’t want to organize collective bargaining ones.

It’s more straightforward than it sounds. The key is that we would make the workplace available as a site for political organization. While the law would continue to protect workers’ right to organize traditional unions, it would also protect workers’ right to organize strictly political ones. Workers would have the right to talk about politics with one another at work, as long as they did so during nonworking time.

Employers would be prohibited from retaliating against their employees who organized politically, and if the workers did form a political union, they would be entitled — as traditional unions are — to use voluntary payroll deductions to finance their activities. But these political unions would be prohibited from collective bargaining, and no worker would ever be required to pay dues to a political union — or to be represented by one — unless she chose to be.

The types of policies that political unions chose to pursue would be entirely up to their members. Some might fight for bread-and-butter issues like a higher minimum wage, but others might concentrate on social issues or even foreign policy. But whatever issues they chose to pursue, these unions would give a political voice to those in America who currently lack one.

Campaign-finance reform has failed because it does nothing to address the underlying disparities in wealth distribution that produce political inequality in the first place. Legal reforms that enable political organizing are fundamentally different because organization, like wealth, is its own source of political power.

Allowing workers to organize for politics, even when they decide not to organize for collective bargaining, would help restore balance to a democracy that wealth has so badly skewed.

 

By: Benjamin I. Sachs, Op-Ed Contributor, The New York Times, September 1, 2013

September 2, 2013 Posted by | Economic Inequality, Unions | , , , , , , , | Leave a comment

“Martin Luther King’s Unfinished Business”: We All Have To Realize That Our Destinies Are Tied Together

On Aug. 28, 1963, Martin Luther King Jr. led a March on Washington that focused in part on economic equality.

“The Negro lives on a lonely island of poverty in the midst of a vast ocean of material prosperity,” King said that day.

Fifty years later, the income and wealth gap for minorities is still wide and troubling. The median wealth of white households is 20 times that of black households and 18 times that of Hispanic households, according to the Pew Research Center.

And the Great Recession didn’t help an already bad situation. The average net worth of households in the upper 7 percent of the wealth distribution chain increased 28 percent during the first two years of the recovery from the downturn, compared with a 4 percent drop for households in the lower 93 percent, according to Pew’s analysis of data from the Census Bureau.

Another Pew report found that the decline in housing prices had a much greater impact on the net worth of minorities relative to that of whites, because housing assumes a larger share of their portfolios.

The Urban Institute’s Opportunity and Ownership Project recently issued a report that similarly examined the chasm that separates the haves and the have-nots.

In 2010, the average income for whites was twice that of blacks and Hispanics, $89,000 compared with $46,000. Whites on average had six times the wealth of blacks and Hispanics, $632,000 compared with $103,000, according to the Urban Institute.

But it’s the wealth gap that the authors of the report rightly focus on. Over the past 30 years, Americans in the top 20 percent saw their average wealth increase by nearly 120 percent, while families with wealth figures in the middle quintile saw growth of only 13 percent. The folks in the bottom 20 percent saw their net worth drop below zero, meaning their debts exceeded their assets.

“When it comes to economic gaps between whites and communities of color in the United States, income inequality tells part of the story,” the authors of the institute’s report wrote. “But let’s not forget about wealth. Wealth isn’t just money in the bank, it’s insurance against tough times, tuition to get a better education and a better job, savings to retire on, and a springboard into the middle class. In short, wealth translates into opportunity.”

The great wealth gap helps explain “why many middle-income blacks and Hispanics haven’t seen much improvement in their relative economic status and, in fact, are at greater risk of sliding backwards,” the report says.

Poverty rates for blacks and Hispanics seriously exceed the national average, according to the National Poverty Center. In 2010, 27.4 percent of blacks and 26.6 percent of Hispanics were poor, compared with 9.9 percent of non-Hispanic whites and 12.1 percent of Asians. About 38 percent of black children and 35 percent of Hispanic children live in poverty, compared with about 12 percent of white children.

“In hindsight, the organizers of the march were correct: Achieving rights without fully obtaining the resources to actualize them is only a partial victory. In this 50th anniversary year of the March on Washington for Jobs and Freedom, we can best pay tribute to the march and all that it stood for by recommitting to achieving its unfinished goals,” wrote Algernon Austin, director of the Economic Policy Institute’s Program on Race, Ethnicity and the Economy. The institute has issued a series of reports examining what it would take to achieve each of the goals of the 1963 March on Washington. Go to www.unfinishedmarch.com to read the essays.

The Rev. Jesse L. Jackson has also stressed the need to “revive the movement to address this unfinished agenda.”

In looking at other economic measures, Jackson wrote in a recent Chicago Sun-Times commentary that African Americans are twice as likely to be unemployed as are whites. Affordable housing is still an issue, as is adequate public transportation that would help people get to jobs.

“We cannot afford to write off a majority of the next generation and still prosper as a great nation,” Jackson wrote.

When I write about the economic state of minorities, I brace myself for the racist, vitriolic comments that follow. Highlighting economic inequalities isn’t about asking for handouts. It’s about finding ways to give people a hand up so that they can become self-sufficient. When the financial lives of the less fortunate are lifted, we all are lifted.

As King said in his “I Have a Dream” speech that summer day 50 years ago, we all have to realize that our destinies are tied together. “We cannot walk alone,” he said.

 

By: Michele Singletary, Columnist, The Washington Post, August 13, 2013

August 17, 2013 Posted by | Martin Luther King Jr | , , , , , , , | 2 Comments

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