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“America’s ‘We’ Problem”: Being Rich In Today’s America Means Not Having To Come Across Anyone Who Isn’t

America has a serious “We” problem — as in “Why should we pay for them?”

The question is popping up all over the place. It underlies the debate over extending unemployment benefits to the long-term unemployed and providing food stamps to the poor.

It’s found in the resistance of some young and healthy people to being required to buy health insurance in order to help pay for people with preexisting health problems.

It can be heard among the residents of upscale neighborhoods who don’t want their tax dollars going to the inhabitants of poorer neighborhoods nearby.

The pronouns “we” and “they” are the most important of all political words. They demarcate who’s within the sphere of mutual responsibility, and who’s not. Someone within that sphere who’s needy is one of “us” — an extension of our family, friends, community, tribe – and deserving of help. But needy people outside that sphere are “them,” presumed undeserving unless proved otherwise.

The central political question faced by any nation or group is where the borders of this sphere of mutual responsibility are drawn.

Why in recent years have so many middle-class and wealthy Americans pulled the borders in closer?

The middle-class and wealthy citizens of East Baton Rouge Parish, Louisiana, for example, are trying to secede from the school district they now share with poorer residents of town, and set up their own district funded by property taxes from their higher-valued homes.

Similar efforts are underway in Memphis, Atlanta, and Dallas. Over the past two years, two wealthy suburbs of Birmingham, Alabama, have left the countywide school system in order to set up their own.

Elsewhere, upscale school districts are voting down state plans to raise their taxes in order to provide more money to poor districts, as they did recently in Colorado.

“Why should we pay for them?” is also reverberating in wealthy places like Oakland County, Michigan, that border devastatingly poor places like Detroit.

“Now, all of a sudden, they’re having problems and they want to give part of the responsibility to the suburbs?” says L. Brooks Paterson, the Oakland County executive. “They’re not gonna talk me into being the good guy. ‘Pick up your share?’ Ha ha.”

But had the official boundary been drawn differently so that it encompassed both Oakland County and Detroit – say, to create a Greater Detroit region – the two places would form a “we” whose problems Oakland’s more affluent citizens would have some responsibility to address.

What’s going on?

One obvious explanation involves race. Detroit is mostly black; Oakland County, mostly white. The secessionist school districts in the South are almost entirely white; the neighborhoods they’re leaving behind, mostly black.

But racisim has been with us from the start. Although some southern school districts are seceding in the wake of the ending of court-ordered desegregation, race alone can’t explain the broader national pattern. According to Census Bureau numbers, two-thirds of Americans below the poverty line at any given point identify themselves as white.

Another culprit is the increasing economic stress felt by most middle-class Americans. Median household incomes are dropping and over three-quarters of Americans report they’re living paycheck to paycheck.

It’s easier to be generous and expansive about the sphere of ”we” when incomes are rising and future prospects seem even better, as during the first three decades after World War II when America declared war on poverty and expanded civil rights. But since the late 1970s, as most paychecks have flattened or declined, adjusted for inflation, many in the stressed middle no longer want to pay for “them.”

Yet this doesn’t explain why so many wealthy America’s are also exiting. They’ve never been richer. Surely they can afford a larger “we.” But most of today’s rich adamantly refuse to pay anything close to the tax rate America’s wealthy accepted forty years ago.

Perhaps it’s because, as inequality has widened and class divisions have hardened, America’s wealthy no longer have any idea how the other half lives.

Being rich in today’s America means not having to come across anyone who isn’t. Exclusive prep schools, elite colleges, private jets, gated communities, tony resorts, symphony halls and opera houses, and vacation homes in the Hamptons and other exclusive vacation sites all insulate them from the rabble.

America’s wealthy increasingly inhabit a different country from the one “they” inhabit, and America’s less fortunate seem as foreign as do the needy inhabitants of another country.

The first step in widening the sphere of “we” is to break down the barriers — not just of race, but also, increasingly, of class, and of geographical segregation by income — that are pushing “we Americans” further and further apart.

 

By: Robert Reich, The Robert Reich Blog, February 14, 2014

February 17, 2014 Posted by | Economic Inequality, Poverty, Wealthy | , , , , , , | 1 Comment

“Ideology Versus Pragmatism”: Republicans Consider Stripping Health Insurance From Tens Of Thousands Of Arkansans

In Arkansas, approximately 83,000 low-income residents are in danger of losing their health insurance as early as July 1.

In 2013, Arkansas’ Republican-controlled legislature devised an alternative plan to expand Medicaid while still protecting the state’s poorest residents and hospitals. Through the plan, commonly referred to as the “private option,” Arkansas distributes federal funds — provided under the Affordable Care Act — to eligible recipients, who then use the funds to buy private health insurance plans. Proponents note that the plan offers private coverage to residents who would otherwise be unable to obtain it.

As The Washington Post reports, Governor Mike Beebe (R) welcomed the plan, saying it would save taxpayers nearly $90 million this year. The Obama administration later approved the plan, adding two necessary conditions: that cost-sharing and recipients’ benefits remain the same as the traditional Medicaid program, and that the total costs of the private plan do not exceed those of implementing traditional Medicaid expansion.

Over the past year, the private option has become so popular that variations of it are now being adopted in several states, like Pennsylvania and Utah.

“In crafting the ‘private option,’ Arkansas has provided a pathway for other states. They truly are trailblazers,” Deborah Bachrach, a partner with consulting firm Manatt Health, told  the Post.

In recent weeks, however, Republicans have threatened to jump ship on the plan, jeopardizing the program that offers protection to tens of thousands of Arkansans.

With the state’s May primaries quickly approaching, Republican lawmakers facing more conservative challengers are feeling the pressure to vote against a renewal of the program’s financing.

“You’ve got a very small minority of people who can derail this,” explains Governor Beebe, who says that the sudden lack of support has to do with “ideology versus pragmatism.”

“If we lose one or two votes, it’s critical,” he added.

Considering that Arkansas requires 75 percent of the members of both houses to pass appropriations measures, “one or two” GOP votes are certainly critical to the program’s future. And in recent weeks, two Republican state senators have voiced their opposition to extending the private plan.

Senator Missy Irvin, who voted for the program last year, announced she would no longer support it, citing a decision made by Arkansas Blue Cross and Blue Shield – Arkansas’ dominant health insurance company – to cut reimbursement rates by 15 percent to specialists who participate in its federally run online insurance exchange plans. Irvin might have had another motive, however; she is currently facing a primary challenge from Tea Party candidate Phil Grace, who pointed to Irvin’s support for the private option as one of the main reasons he chose to run.

The argument against the plan made by Grace and other conservatives like him is rather vague, but it still has the power to sway other GOP votes.

“Right now, Washington is broken and trillions of dollars in debt. We can’t count on D.C. to keep promises for any funding and Arkansas certainly can’t foot the bill. The only way to deal with D.C.’s issues is for states to band together and push back,” Grace says.

Grace’s opposition to the private program – which has been echoed by other conservatives running in 2014 — steers clear of the GOP’s typical “big government” arguments, leaving it seeming rather arbitrary.

State Senator John Cooper, another Tea Party favorite, also says that he will not vote to reauthorize the plan’s funding — which is not a surprise, since he won the state’s special election by running against the program. Cooper argues that it will not save Arkansas money in the long term, despite reports to the contrary.

If Republicans vote against the private option – a vote that come could as early as next week – the implications for the state’s poor residents are burdensome and great. Before the private option existed, Arkansas had one of the most restrictive Medicaid programs in the nation, which made it especially difficult for struggling individuals and families to obtain coverage.

 

By: Elissa Gomez, The National Memo, February 11, 2014

February 13, 2014 Posted by | Health Insurance, Medicaid | , , , , , , , | Leave a comment

“Pitting The Poor Against The Other Poor”: America Should Treat All Poor People As Well As It Treats Poor Veterans

The message about American soldiers is almost always the same across partisan lines: They are hard-working, courageous, brave heroes, the essence of upstanding, wholesome, and industrious citizenry.

This picture may well be true. But there’s a troubling underbelly to this ideal: Our culture’s respect and admiration for the troops is matched in extremity by its disrespect for the poor.

The poor in this country are often described in polar opposite terms of those employed to exalt soldiers. The poor are takers, morally degenerate, lazy, and so welfare-addicted that they can’t even have life dreams and projects. In our depictions of soldiers and veterans, we construct paragons of virtue. In our depictions of the poor and downtrodden, we construct paragons of vice.

However, lurking behind this contrast is an uncomfortable reality: The two groups substantially overlap.

In 2011, nearly 1 in 7 of our country’s homeless were veterans, nearly 1 in 3 veterans between the ages 18 and 24 were unemployed, and veterans lived in 1 in 5 households poor enough to qualify for low-income heating assistance. Last year, nearly 1 million veterans were on food stamps, and many more doubtlessly received low-income transfer payments like the Earned Income Tax Credit, the kinds of transfers being pilloried by those who decry the “47 percent.”

The poor are often veterans, and veterans are often poor.

This fact occasionally puts conservative lawmakers and commentators who heap disdain on the poor in very tough spots. After all, how do you level rhetorical attacks on the poor and the programs that serve them without also attacking the poor veterans whom we lionize in their capacity as former soldiers?

One way conservatives deal with this tension is to just flatly exclude veterans from their welfare bashing. So for instance, when Senate Republicans sought an accounting of all of the means-tested benefits paid out by the federal government each year, they directed the Congressional Research Service to specifically exclude means-tested welfare programs for veterans. After all, if you are going to construct a list of programs that you intend to trash as wasteful, you can’t have it include means-tested veterans’ health care and means-tested veterans’ pensions. That would be far too disrespectful and intolerably dissonant with pro-troop messaging.

On the liberal side of the aisle, the existence of poor and economically suffering veterans presents a huge rhetorical opportunity, but one that the left constantly manages to bungle. Right now, big name Democrats talk about poor veterans in ways that tend to preserve the notion that they are particularly special. So for instance, when Cory Booker discussed the impact of cutting unemployment insurance on veterans, he emphasized that this was a special crime because “these men and women who fought for our country … are not lazy.” Instead of using this opportunity to defend the poor at large, we get special pleading based on the notion that poor and struggling veterans are somehow different from and more virtuous than the other program beneficiaries.

The more sensible move here, both on the merits and politically, is not to sequester poor veterans off into their own special category of poor people. Such hiving off only reinforces the toxic and illegitimate distinction we make between the deserving and undeserving poor. Instead of separating veterans out, they should be depicted as being very much like most people who find themselves in economic trouble.

The reason why veterans — people who in prior years proved themselves capable of adhering to extreme discipline and undertaking grueling amounts of difficult labor — wind up poor or unemployed is because poverty and unemployment are mainstream conditions that affect huge swaths of our population, not just some mythical class of degenerate scum. Four out of five Americans spend at least one year of their adult life in or near poverty, jobless, or reliant on welfare. Over half of American adults spend at least one year of their life in poverty and nearly 1 in 7 Americans report having been homeless at some point in their life.

As the the President’s Commission on Income Maintenance Programs pointed out in 1969, “our economic and social structure virtually guarantees poverty for millions of Americans. Unemployment and underemployment are basic facts of American life.”

It’s time to reform mainstream understanding of the poor. Ask yourself: If the exemplars of greatness in our society can fall into poverty and unemployment, then who else might be in those ranks alongside them?

 

By: Matt Bruenig, The Week, February 6, 2014

February 7, 2014 Posted by | Poverty, Veterans | , , , , , , , | Leave a comment

“Preserving Welfare For The Rich”: Farm Subsidies Reveal Congressional Double Standard

Congress has left me confused. Stunned, actually, as well as bewildered, chagrined and slightly depressed. The GOP-dominated House has passed a bill that defies compassion, mathematics and common sense.

OK, so there’s nothing unusual about that. Point taken.

But the recent passage of a farm bill, after months of delay, is an especially sharp example of congressional priorities — protect the rich and punish the poor, comfort the comfortable while brutalizing the afflicted. The bill will cut the Supplemental Nutrition Assistance Program (SNAP), usually known as food stamps, while preserving subsidies for farmers, most of whom could get by quite nicely without help.

By contrast, many Americans are struggling with a globalized, roboticized economy that has devalued the average worker. The new economy has forced down wages, eliminated job security and abandoned traditional perks such as pensions. It is quite possible to work 40 or 50 hours a week and still need help to put food on the table, as the managers of food pantries around the country will attest.

Yet, congressional observers are predicting that the farm bill will pass the Senate and get President Obama’s signature. While most Democrats don’t like the cuts, the current bill, they figure, is the best they can do. It takes about 1 percent from SNAP — around $800 million a year in the $80 billion-a-year program — but that’s less than conservatives had initially sought.

Still, if Republicans really care about deficits, if they really want to rein in government, if they believe people ought to stand on their own two feet and refuse the “welfare state,” why are they preserving welfare for those who need it least? Do they not see the glaring hypocrisy in their insistence on farm subsidies?

The bill does end the least politically defensible part of farm welfare: direct payments, paid to farmers whether they plant or not. But it continues a host of other unnecessary programs that cost billions — including crop subsidies and crop insurance. Indeed, the bill increases some crop subsidies, such as those to Southern peanut farmers. And the remaining programs are just as bad as the direct payments.

Take crop insurance, which has its roots in the Dust Bowl era. Though conditions have changed substantially since then — the small family farmer has virtually disappeared — crop insurance has mushroomed. In 2012, according to The Insurance Journal, taxpayers spent $14 billion insuring farmers against a loss of income. Is there any other business in America that gets that sort of benefit? Aren’t farmers supposed to be entrepreneurs willing to take risks?

This farm welfare comes at a time when agricultural income is soaring. Last year, farm income was expected to top $120 billion, its highest mark, adjusted for inflation, since 1973, the Insurance Journal said. Lots of millionaires and billionaires are on the list of those receiving the assistance.

One case of mind-boggling hypocrisy is that of U.S. Rep. Stephen Fincher, a Republican and a farmer from Frog Jump, TN, who collected nearly $3.5 million in subsidies from 1999 to 2012, according to the Environmental Working Group. In 2012, he received $70,000 in direct payments alone — again, money paid to farmers whether they plant or not. (Can anyone say “moochers” and “takers”?)

Fincher, however, supports draconian cuts to food stamps. During a congressional debate over the SNAP program, he said, without apparent irony: “We have to remember there is not a big printing press in Washington that continually prints money over and over. This is other people’s money that Washington is appropriating and spending.”

I don’t know why the cognitive dissonance doesn’t make his brain explode.

Fraud, by the way, is rampant in farm subsidies, although you’re unlikely to hear anything about it. While the occasional welfare cheat or food stamp grifter is held up as an example of widespread abuse, neither politicians nor reporters talk much about the fraud involved in agricultural programs. You have to burrow into reports from the Government Accountability Office for that. They point to millions stolen by farm cheats.

It’s enough to make you wonder what the food stamp critics are really upset about. Government spending? Or giving the working poor a little more to eat?

 

By: Cynthia Tucker, The National Memo, February 2, 2014

February 3, 2014 Posted by | Agriculture, Farm Bill | , , , , , , , | 3 Comments

“A Change That Can’t Come Soon Enough”: The Poor Deserve Equal Protection By The Law

If you’ve been a tourist or business traveler recently in Kenya, India, Guatemala or any other developing country, you probably saw uniformed guards in the stores and offices you visited or hotels where you slept. The sight of these guards is so common that their presence most likely faded into the background. But they are emblematic of a massive social transformation that is passing unnoticed: Throughout the developing world, public justice systems are being replaced with private systems of security and dispute resolution. The implications for the world’s poorest people are devastating.

Businesses and economic elites in developing countries left frustrated by incompetent police, clogged courts and hopelessly overburdened judges and prosecutors are increasingly circumventing these systems and buying their own protection. In India in late 2010 the private security industry already employed more than 5.5 million people — roughly four times the size of the entire Indian police force. A 2009 World Bank report showed roughly the same ratio in Kenya. The largest employer in all of Africa is a private security firm, Group4Securicor, and in Guatemala, private security forces outnumber public police 7 to 1.

The repercussions extend far beyond the elites and businesses that buy safety: When protection must be purchased, the poorest are left with nothing to shield them from violence. In many developing countries, if you want to be safe, you pay to be safe. And if you can’t pay to be safe — you aren’t.

As elites abandon the public security system, their impoverished neighbors, especially women and girls, are left relying on underpaid, under-trained, undisciplined and frequently corrupt police forces for protection and all-but-paralyzed courts for justice.

This is not a small problem isolated to a single context. It is the terrifying truth of everyday life for billions of our poorest neighbors. As a U.N. commission found in 2008, a stunning 4 billion poor people live outside the protection of law.

When a justice system descends into utter dysfunction, those who exploit and abuse vulnerable people may do so without fear of apprehension or prosecution. As a result, violence is an everyday threat, as much a part of what it means to be poor as being hungry, sick, homeless or jobless. World Bank data suggest that, globally, women and girls ages 15 to 44 are at greater risk of being killed or disabled by gender-based violence than by cancer, traffic accidents, malaria and war combined — with poor women and girls absorbing the vast majority of the abuse. Appallingly, for many girls in the developing world, school is the most common place where sexual violence occurs.

This result cannot be attributed solely, or even primarily, to the elites’ abandonment of the public justice system. For one thing, the colonial-era justice systems that linger in most of the developing world were never designed to protect the poor from common crime, nor were they meaningfully re-engineered to do so after independence. For another, trillions in aid have been provided to the developing world, but virtually nothing has been spent on improving criminal justice systems to meet the basic needs of poor people.

It is perfectly rational for wealthy citizens and businesses to protect themselves and their property. But when elites, including government officials, have no stake in professional and reliable public security, it deteriorates, just like libraries and schools do when affluent families opt out of public facilities and pay for such services in the private sector.

In the midst of great and worthy efforts to help the global poor build better lives, donors and development institutions have paid little attention to the painstaking work required to ensure the things that are indispensable to stopping violence: professional and accountable police; and functioning prosecutors, courts and child welfare agencies.

Even with the widespread recognition that everyday violence undermines health, education and opportunity, it has been assumed that poor communities can move forward without basic law enforcement systems — a notion none of us has been willing to bet on for our own communities.

The United Nations is in the process of revising the 2000 Millennium Development Goals. Although the original eight goals inspired enormous progress toward addressing poverty, the issue of violence against the poor wasn’t even mentioned. It’s time to add a target for providing the poor basic law enforcement protections from everyday violence.

Identifying the right to safety and justice as a crucial development goal is a first step toward including those marginalized by violence and exploitation in the world’s drive to end extreme poverty. For children, women and men plagued by violence as they try to climb out of poverty, it’s a change that can’t come soon enough.

 

By: Gary A. Haugen, The Washington Post, Opinions, January 26, 2014

January 29, 2014 Posted by | Poverty | , , , , , | Leave a comment