“Poor People Don’t Just Disappear”: This Is What Happens When You Rip A Hole In The Safety Net
America’s social safety net, such as it is, has recently come under some scrutiny. Chana Joffe-Walt’s in-depth exploration of the increase in people getting Social Security Disability benefits at NPR got many listeners buzzing. Then in The Wall Street Journal, Damian Paletta and Caroline Porter looked at the increase in the use of food stamps, called SNAP. All three journalists look at the increasing dependence on these programs and come away puzzled: Why are so many people now getting disability and food stamp payments?
The answer is two-fold. Recent trends give us the first part of the explanation. Yes, as Paletta and Porter note, the economy is recovering and the unemployment rate is falling. But, as they recognize, the poverty rate is also rising. And therein lies the rub: people are getting jobs but staying poor. The available jobs are increasingly low-wage and don’t pay enough to live off of. And the big profits in the private sector haven’t led to an increase in wages.
GDP and employment may be doing well, but that hasn’t done much for those at the bottom of the totem pole. As the WSJ article points out, 48.5 million people were living in poverty in 2011, up from 37.3 million in 2007, a 30 percent increase. This is despite an unemployment rate that’s fallen off its peak. Some of the fall in the unemployment rate has been driven by people simply giving up on looking for a job altogether. But those who do get jobs are likely trading their once middle-class employment for low-wage work. The National Employment Law Project has found that mid-wage jobs have been wiped out during the recovery in favor of low-wage work: low paying jobs grew nearly three times as fast as mid-wage or high-wage work.
But there’s a deeper explanation that goes beyond the current economic picture. Aren’t there other programs for the increasing ranks of people living in poverty to turn to? Unfortunately, we’ve worked hard to weaken key parts of the safety net by changing how programs operate and then cutting back on their funds. Consequently, the number of people who are reached by programs for the poor has shrunk. But when you take away someone’s lifeline, they don’t stop needing it. So they either suffer hardship or find support elsewhere. What disability insurance and SNAP have in common is that they are fully funded by the federal government, which also can set the eligibility requirements. While states narrow eligibility requirements for TANF or unemployment insurance, the federal government can leave them (relatively) more open for SNAP and disability. That leaves them absorbing those who we’ve thrown off the rolls of other programs.
Unemployment benefits are where people turn when they lose a job and need income before getting back to work. But due to financial and other requirements, not everyone gets them. These rules vary state by state because states are in almost complete control of the program. They set their own eligibility criteria and benefit levels and are also on the hook for most of the funding for the benefits. As the Center on Budget and Policy Priorities reports, “the federal government pays only the administrative costs.”
Unlike the federal government, states have constrained budgets and most have to balance them every year. These budgets get even tighter in a downturn when people lose jobs and don’t pay as many taxes. On top of this, states have come under pressure from business groups during good times to reduce the contributions they use to fund the reserves that pay out benefits when things get tough. So many states have cut back on eligibility or benefit amounts in light of squeezed budgets. Given all of these constraints on benefits, only about a third of all children whose parents were unemployed at some point in 2011 actually saw any unemployment insurance benefits. They were far more likely to get food stamps, a federally funded program that has been much more flexible.
This story of a program financed by states that hasn’t been able to keep up with demand is the same for another huge part of the social safety net: welfare, or as we know it now, TANF. TANF does even worse than unemployment: it reaches just 10 percent of the children living with unemployment parents and just 30 percent of those living in poverty. The program used to do much better: in 1996, it reached 70 percent of poor families with children living in poverty. But then there was welfare reform, which turned it from a cost-sharing model to a block grant. Rather than the federal government sharing the costs with the states, the government now doles out lumps of cash and mostly lets states handle the rest. That lump doesn’t change even if the economy gets worse and more people live in poverty—and hasn’t even kept up with inflation.
While welfare reformers initially claimed victory as rolls fell during a booming 90s economy, the numbers have continued to fall even as jobs have disappeared. The poverty rate among families is back up to 1996 levels, but TANF’s caseload has fallen by 60 percent since then.
These families aren’t magically de-impoverished when they’re kicked off of government support programs. So they either go hungry or find other means of support. Enter SNAP and disability. SNAP has grown by 45 percent to meet increased need in the poor economy. The federal government was able to increase funding and waive some barriers to entering the program.
The CBPP reports that the growth in the use of disability insurance, on the other hand, is in large part due to demographic factors—an aging population and women’s increased entrance into the workforce—which accounts for half its growth since 1990. The elderly are far more likely to be disabled than younger workers, and more women workers means more workers who might become disabled. Other factors that contributed to its growth include the economic downturn. Joffe-Walt reports on how disability has dovetailed with welfare pruning its rolls. As she shows in two graphs, the number of low-income people on disability rose just as the number of families on welfare declined. Disability receipts also rise as unemployment rises. To qualify for disability, an applicant must have, as CBPP puts it, “little or no income and few assets”—which means that if unemployment and poverty rise, more people will fit this description. As Harold Pollack points out, “If you have a bad back, and the only jobs available are manual labor, that’s a real limitation. You’re unable to work. So it very much matters that we’re in a deep recession and a lot of the opportunities people faced are limited.”
Other than elderly disabled workers, those who sign up for disability are those who can’t even dream of finding a job that doesn’t require physical exertion and have no other income—thus leaving them with no where to turn but disability. After all, unemployment only lasts so long and TANF now comes with strict work requirements. Disability steps in when those with low education levels who live in communities based around industry—hard manual labor—lose their jobs and fall into poverty.
This is what happens when you burn enormous holes in the fabric of the social safety net: people either fall through or cling to the remaining parts. We can certainly debate whether we want food stamps and disability to carry so much of the burden of supporting the poor and vulnerable. In fact, this all seems to point to the simplest answer, which is to just hand money to those in poverty rather than funnel it through these different programs that may or may not actually meet people’s needs. But what we shouldn’t do is assume that food stamps and disability are bloated programs because so many people rely on them and then jump to cutting them back. Poor people don’t disappear just because we slash the programs they rely on. They still struggle to get by. That’s the lesson we should have learned over the past two decades.
By: Bryce Covert, The Nation, March 28, 2013
“Riding The Bench” John Boehner Still Waiting For Others To “Lead”
When it comes to power in Washington, John Boehner isn’t exactly a hapless schlub, at least not on paper. He’s the Speaker of the House, second in the presidential line of succession, and ostensibly the most powerful member of the legislative branch of government. He has a powerful megaphone, a sizable House majority, and the capacity to have an enormous impact on policymaking.
And yet, John Boehner believes leadership is something others should show. In his new Washington Post op-ed on the larger budget fight, the House Speaker is giving new meaning to the phrase “leading from behind.”
The problem, in large part, is that Democrats refuse to make the tough choices necessary to solve our long-term debt crisis…. [P]residential leadership is really what’s needed.
Needed for what? Well, according to Boehner, he’d like to see President Obama cut spending the way Republicans want, cut entitlements the way Republicans want, balance the budget the way Republicans want, and approve the Keystone XL pipeline the way Republicans want.
And if Obama disagrees, he’s not making “tough choices” and failing to show “leadership.”
Left unsaid: John Boehner, despite his power and authority, isn’t leading, doesn’t want to lead, has no intention of leading, and doesn’t even know how to lead — which is precisely why he keeps waiting for the White House and Senate to do the real work while Boehner waits patiently (or as evidenced by this op-ed, perhaps not so patiently) on the sidelines.
Let’s make this easy for the Speaker: (1) Name one budget issue on which you and your party are prepared to compromise; (2) Name one concession you and your party are willing to accept in exchange for a related Democratic concession.
If the answer to either of these is questions is a blank stare, then the Speaker of the House has no business calling himself a leader of anyone or anything.
By: Steve Benen, The Maddow Blog, March 14, 2013
“Repeating Bad Ideas”: The Competitive Advantage Of Deficit Hacks
As I mentioned earlier, economist and blogger Duncan Black has written that Social Security should be expanded, instead of cut. He has written this multiple times, making essentially the same argument in consecutive USA Today opinion columns. That is a good thing, because it is an argument that is frequently absent from discussions of “entitlements” on cable news and in the political press.
But Black will have to write the exact same column hundreds and hundreds more times in order to have made this argument anywhere near as often as deficit fear-mongers make their arguments.
Paul Krugman today blogged about various “zombie ideas” that he thought he had debunked years ago still being repeated. And, duh, “no one listens to Paul Krugman” is basically the history of the United States since Y2K. Since the Bush era, Krugman has really just written the same five or six columns, over and over again. But they are good, useful, correct columns! And still, the rest of the media lavish praise on “deficit hawks” and beg for “entitlement cuts” Americans do not actually want, at all.
I think a lot about contemporary political debates makes a great deal more sense when you realize that hacks, especially hacks shilling for awful ideas, have a competitive advantage over non-hacks: They do not care if they constantly repeat themselves, even if what they are constantly repeating is wrong.
For a writer or pundit who actually feels some sort of responsibility to inform and/or entertain his or her readers, writing the same damn thing over and over again seems wrong (it is also boring). But bad ideas are constantly being repeated by people who feel absolutely no shame about saying the same things over and over and over again. Indeed, “shamelessness” is in general a defining characteristic of hacks. Also, frequently, people are being paid to repeat the same awful ideas over and over again, and unfortunately usually there’s more money to be made repeating bad ideas than good ones. (Hence: Lanny Davis.)
Arguably, American conservatives are better at sticking to their pet causes in general, as liberals move from fight to fight. Look at how contraception “suddenly” became a matter of national public debate last year, years after liberals thought it a well-settled question. Or look at how long the movement spent trying to roll back the majority of the New Deal, a project that continues to this day!
And on the question of the deficit and the “grand bargain,” Pete Peterson and a few others have spent hundreds of millions of dollars and decades of their lives making the exact same argument, and setting up organizations that pay others to make the exact same argument, until a majority of Beltway centrists internalized the argument and began making it themselves, over and over again. When it comes to centrist pundits, the unsophisticated brainwashing technique that has utterly failed to move the public at large over the last 25 years has worked perfectly. (Because centrist pundits are simple, credulous people, by and large, and also because they will not rely on “entitlements” to survive, when they retire from their very well-compensated jobs.)
So liberal and left-wing thinkers should probably strive to be more Krugman-esque, and hammer home the same causes and arguments no matter how boring it gets, because that is what Joe Scarborough is doing every morning.
By: Alex Pareene, Salon, March 11, 2013
GOP Meltdown: Paul Ryan Doubles Down On His Losing Southern Strategy
After years of drifting apart, the jobs report and the stock market aligned this week, at least momentarily, as unemployment fell to the lowest level in over four years while the Dow and the S&P 500 continued to climb. We’re hardly out of the woods— the workforce participation rate remains stuck in neutral, overall growth remains sluggish, and worker income is still lagging behind the stock market gains—but there are signs of hope.
Yet some things don’t change. As the sputtering economy tries to get into gear, House Budget Committee Chairman Paul Ryan keeps talking about depriving hard working-taxpaying Americans of their retirement benefits, while offering nothing in return. This is the strategy that failed Mitt Romney and Ryan in November, and that alienates not just senior citizens, but voters over 45 — one of the few groups that’s so far remained reliably right-leaning as Asians, Hispanics, upscale Episcopalians, graduate degree holders and others have abandoned the shrinking GOP tent.
If the President’s electoral playbook called for uniting the rich and poor and treating the middle class as an afterthought, the Congressman has a more direct, if less palatable, approach: he simply attacks the middle class, by trying to gut their earned entitlement programs.
Harping on social issues and bashing the 47 percent, along with Mitt Romney’s antipathy on the auto bailout, is why Republicans got their clocks cleaned in the industrial Midwest last November, eking out just a 5-point plurality among non-college grad white voters in the Great Lakes (a group they won by 19 points nationally).
Apparently, the failed vice presidential candidate has not internalized these lessons. Instead, Ryan & Co. seems to be doubling down on 2012’s failed bet, and treating working Americans as little more than moochers. A year ago, Candidate Ryan called for voucher care instead of Medicare for Americans who were then 55 and under. Now, he is pressing the idea of setting the cut-off at 56 in an effort to force more Americans off of Medicare.
Polling data consistently show that voters disapprove of vouchers for seniors, and Ryan’s gambit may have even cost the Republicans Florida.
It’s no surprise, then, that the few standing members of the ever-dwindling cohort of centrist House Republicans are furious with Ryan’s latest suggestion.
Tenaciously, Ryan continues to press ahead. As an unidentified member told The Hill, the “big problem was that a lot of people have been telling people that it’s 55 and that’s the number . . . And if you change it, it’s going to make us look like [liars].”
The sole source of income for most Americans now turning 65 is their monthly Social Security check, which averages a little more than $1,200 and that is before paying $100 a month for Medicare Plan B.
The origins of Ryanism trace back to John C. Calhoun’s South and Herbert Hoover’s America—and that is a losing coalition. Indeed, for a southern-based party like the current iteration of the Republican Party to regain traction, it must reach out to and make inroads with the Northern working class. Richard Nixon, Ronald Reagan and both Bushes demonstrated that this task was doable. And yet, the current crop of Republicans just does not seem to get it. When the party of the South decides to go it alone, it fails.
Single women now rival white evangelicals as a voting bloc, and the former – which preferred Obama to Romney by a staggering two-to-one margin—is just not cottoning to the Republicans’ message on personal autonomy or anything else. With childrearing and marriage increasingly distinct and recent studies showing that the life expectancies of subgroups of women are declining regionally, even as life expectancy on the whole is rising, a call to replace a long-established safety net with faux personal responsibility is not a winning message.
Religion also has lost traction at the lower end of the income spectrum, particularly outside of the South. Rather, regular worship is now the province of married upper-income Americans, be they Republicans or Democrats. SMU families and their Scarsdale counterparts have more in common than either may realize.
If the Republicans stay on their present course, the fate of the old Democratic Party awaits them.
Between 1860 and 1932, the Democrats were a Southern-based party that managed to elect only two presidents in 18 elections.
And in fact, Ryan the Midwesterner does seem to look to the South. He supported relief for the victims of Katrina, but opposed aid in the aftermath of Hurricane Sandy. At least on disaster funding, the Congressman can whistle Dixie. The question for the Republican Party is whether it has the will to change. After losing five straight elections to FDR’s New Deal Coalition, the Republicans got their act together. Will history repeat itself?
One thing is for sure: Alienating your base when you need every vote that you can get is not smart politics.
By: Lloyd Green, The Daily Beast, March 10, 2013
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