“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
“The War Over Poverty”: The Problem Of Poverty Is Part Of The Broader Problem Of Rising Income Inequality
Fifty years have passed since Lyndon Johnson declared war on poverty. And a funny thing happened on the way to this anniversary. Suddenly, or so it seems, progressives have stopped apologizing for their efforts on behalf of the poor, and have started trumpeting them instead. And conservatives find themselves on the defensive.
It wasn’t supposed to be this way. For a long time, everyone knew — or, more accurately, “knew” — that the war on poverty had been an abject failure. And they knew why: It was the fault of the poor themselves. But what everyone knew wasn’t true, and the public seems to have caught on.
The narrative went like this: Antipoverty programs hadn’t actually reduced poverty, because poverty in America was basically a social problem — a problem of broken families, crime and a culture of dependence that was only reinforced by government aid. And because this narrative was so widely accepted, bashing the poor was good politics, enthusiastically embraced by Republicans and some Democrats, too.
Yet this view of poverty, which may have had some truth to it in the 1970s, bears no resemblance to anything that has happened since.
For one thing, the war on poverty has, in fact, achieved quite a lot. It’s true that the standard measure of poverty hasn’t fallen much. But this measure doesn’t include the value of crucial public programs like food stamps and the earned-income tax credit. Once these programs are taken into account, the data show a significant decline in poverty, and a much larger decline in extreme poverty. Other evidence also points to a big improvement in the lives of America’s poor: lower-income Americans are much healthier and better-nourished than they were in the 1960s.
Furthermore, there is strong evidence that antipoverty programs have long-term benefits, both to their recipients and to the nation as a whole. For example, children who had access to food stamps were healthier and had higher incomes in later life than people who didn’t.
And if progress against poverty has nonetheless been disappointingly slow — which it has — blame rests not with the poor but with a changing labor market, one that no longer offers good wages to ordinary workers. Wages used to rise along with worker productivity, but that linkage ended around 1980. The bottom third of the American work force has seen little or no rise in inflation-adjusted wages since the early 1970s; the bottom third of male workers has experienced a sharp wage decline. This wage stagnation, not social decay, is the reason poverty has proved so hard to eradicate.
Or to put it a different way, the problem of poverty has become part of the broader problem of rising income inequality, of an economy in which all the fruits of growth seem to go to a small elite, leaving everyone else behind.
So how should we respond to this reality?
The conservative position, essentially, is that we shouldn’t respond. Conservatives are committed to the view that government is always the problem, never the solution; they treat every beneficiary of a safety-net program as if he or she were “a Cadillac-driving welfare queen.” And why not? After all, for decades their position was a political winner, because middle-class Americans saw “welfare” as something that Those People got but they didn’t.
But that was then. At this point, the rise of the 1 percent at the expense of everyone else is so obvious that it’s no longer possible to shut down any discussion of rising inequality with cries of “class warfare.” Meanwhile, hard times have forced many more Americans to turn to safety-net programs. And as conservatives have responded by defining an ever-growing fraction of the population as morally unworthy “takers” — a quarter, a third, 47 percent, whatever — they have made themselves look callous and meanspirited.
You can see the new political dynamics at work in the fight over aid to the unemployed. Republicans are still opposed to extended benefits, despite high long-term unemployment. But they have, revealingly, changed their arguments. Suddenly, it’s not about forcing those lazy bums to find jobs; it’s about fiscal responsibility. And nobody believes a word of it.
Meanwhile, progressives are on offense. They have decided that inequality is a winning political issue. They see war-on-poverty programs like food stamps, Medicaid, and the earned-income tax credit as success stories, initiatives that have helped Americans in need — especially during the slump since 2007 — and should be expanded. And if these programs enroll a growing number of Americans, rather than being narrowly targeted on the poor, so what?
So guess what: On its 50th birthday, the war on poverty no longer looks like a failure. It looks, instead, like a template for a rising, increasingly confident progressive movement.
By: Paul Krugman, Op-Ed Columnist, The New York Times, January 9, 2014
“Pull Harder On Your Bootstraps!”: Excuses, Excuses, For Not Extending Unemployment Insurance
The president on Tuesday called on Congress to extend jobless benefits for the long-term unemployed, saying the insurance program keeps Americans from “falling off a cliff.” But the Republican leadership — convinced that Americans can pull themselves up and out of the ravine by their bootstraps — finds the extension unnecessary.
“Pull harder!” sounds kind of callous, though, especially since the unemployment rate hovers above 7 percent and there are more people looking for work than positions available. So Republicans are finding nicer ways of explaining their objections, and ginning up excuses.
The Washington Post reported yesterday that the Republican leadership sent a “what we talk about when we talk about cutting benefits”-type memo to the rank-and-file, which emphasizes the need for compassion. “For every American out of work, it’s a personal crisis for them and their family,” the memo states. “That’s why House Republicans remain focused on creating jobs and growing the economy.”
Is job creation incompatible with extending unemployment insurance? The memo suggests it is: “Even the non-partisan Congressional Budget Office has found that extending the program will lead to some workers reducing the intensity of their job search and staying unemployed longer.”
By the way, the C.B.O. also estimated in December that “extending unemployment benefits would raise gross domestic product (GDP) and employment in 2014 relative to what would occur under current law.” No mention of that in the memo.
Republicans are also trying to make themselves look better by insisting they’d agree to an extension if the cost were “offset” with cuts to the federal budget. Raising revenue by closing tax loopholes is, naturally, off the table. And what’s on the table, at least so far, is definitely not kosher for Democrats.
Senator Mitch McConnell, the minority leader, suggested paying for the cost of an extension by “lifting the burden of Obamacare’s individual mandate for one year.” It’s true that would save money — according to the C.B.O. — but only because fewer uninsured people would seek and receive Medicaid coverage.
By: Juliet Lapidos, Editor’s Blog, The New York Times, January 8, 2014
“Right-Wing Unemployment Myths Debunked”: When You Look At The Data, It’s Just Not There
Surprising many supporters, a three-month unemployment extension bill survived an initial Senate test Tuesday, with six Republicans joining 37 Democrats in voting to let the bill proceed to debate. But GOP members in both chambers have suggested they’ll withhold or withdraw their support unless Democrats offer up conservative concessions – be they parallel budget cuts, deregulation measures, new requirements for the unemployed or an Obamacare mandate delay. Others have argued that unemployed people would be better off without unemployment benefits.
In a Sunday CNN interview, Wisconsin governor and potential presidential contender Scott Walker argued that “the federal government doesn’t require a lot” of the unemployed, and urged that rather than “just putting a check out,” Congress tie unemployment extension to tightened eligibility requirements.
“Making them jump through more hoops will definitely increase administrative costs, but it’s not going to generate more jobs,” Economic Policy Institute economist Heidi Shierholz countered in a Tuesday interview with Salon. “Unless he’s looking at it as a jobs program to hire more public sector workers.”
Shierholz, a former University of Toronto professor now at the progressive Economic Policy Institute, panned several of the right’s other diagnoses and prognoses for the unemployed. A condensed and edited version of our conversation follows.
Some of the same Republican senators whose votes were necessary for unemployment extension to move forward Tuesday are implying they could still vote against final cloture if it isn’t offset with cuts. Is insisting on budget cuts to “offset” the cost of unemployment extension good policy?
It isn’t in this context. And I say that sort of carefully. Because if we were at full employment, and the economy was humming along, and fully utilizing all its potential, then if you’re going to spend a big chunk of money, you might want to think about offsetting it, because the economy doesn’t need any more demand.
We are so far away from that situation that this is exactly the kind of time where you do not have to worry about trying to do offsets like that.
It’s not a bug of the UI system, it’s a feature that it actually costs money. Because at a time like this, when the labor market is so weak, the economy is so weak, and we know that the overwhelming factor behind that weakness is just weak demand, we’re operating way below our potential. People don’t have the income, so they’re not spending. Businesses aren’t investing as much as they would if we were in a strong labor market. Weak demand for goods and services means businesses don’t have to ramp up hiring, they don’t have to ramp up to meet the demand, because demand isn’t there.
So the fact that you’re spending this money on UI, you’re getting money into the economy, is actually exactly what we want to do at a time like this. So trying to sort of bend over backwards to offset it actually just undermines one of the key features of extending UI, which is that it increases economic activity at a time when the economy desperately needs it.
Scott Walker told CNN that “one of the biggest challenges people have who are either unemployed or underemployed is many of them don’t have the skills in advanced manufacturing, in healthcare and I.T. where many of those job openings are.” What’s your assessment of that claim?
You hear that claim made a lot: that the reason we have this weak unemployment, or high long-term unemployment, is that workers don’t have the right skills for the jobs that are available.
I think because you hear this anecdote a lot, there’s been a ton of research done on it — a ton. And economists have dug in, and looked at the data from all sides. The overwhelming consensus: People who aren’t just relying on anecdotes, but who are actually digging in and looking for any sign of a skills-mismatch in the data, don’t find it. The divide on who finds this is more those who are relying on anecdotes versus those who have looked at the data, not right-leaning or left-leaning. Because of those who have looked at the data, you just don’t find evidence that the problem right now is due to workers not having the right skills.
If it were due to workers not having the right skills you would have to see some evidence in some meaningfully sized group of workers of actually tight labor markets relative to 2007. [But] unemployment rates are higher now relative to before the recession started across every education group, across every gender, across every age group, across all racial and ethnic categories, in all major occupations, and all major industries.
If we were seeing tight labor markets, you’d see wages being bid up for the workers who can’t be found, people poaching from other companies. And that you also don’t find. You actually find basically no group that is even seeing wage growth keep pace with overall productivity growth. In any group meaningfully sized enough to be actually driving anything, you don’t see any sign of wages being driven up. Same story with hours.
You’re not seeing any sectors of meaningful size where there’s more job openings than people actually looking for those jobs.
You hear anecdotes a lot about people saying, “I just can’t find the workers that I need.” This may be some interesting sort of psychological stuff about the echo chamber of how those things get so much play at a time like this. When you look at the data, it’s just not there.
One of the senators who voted against proceeding with the unemployment bill, Jeff Sessions of Alabama, said, “First and foremost, unemployment insurance is treating the symptoms of the problem. It’s an aspirin for a fever, but the fever has been raging for weeks now.” Is that a revealing analogy in any way?
It’s treating the symptoms and it helps actually be part of the cure.
They actually are a lifeline to the people that were most hurt by the downturn — people who lost their jobs through no fault of their own, and have not been able to find another one in the period of weakest labor market we’ve seen in 70 years. The fact of the matter is that the labor market is still extraordinarily weak. It’s way weaker by far than at any time we’ve ever allowed extensions to expire.
So it definitely is part of dealing with the symptoms. And then it is absolutely part of the cure: You get money in the hands of the long-term unemployed.
Those are people who are almost by definition cash-strapped. They are going to spend that money. It goes straight into the economy and generates demand for goods and services, which generates demand for workers. So it helps strengthen the recovery.
You put out an estimate that not extending unemployment benefits would cost 310,000 jobs this year. How?
Around $25 billion would be spent if the extensions were continued [for a year]. Some spending is actually more stimulative to the economy, and it has everything to do with how fast and how completely that money goes into raising and creating demand. So unemployment benefits are consistently the second most efficient way that a government can spend money — either through direct spending or through tax cuts to support an economy, to generate economic activity. The only thing that consistently comes in ahead is food stamps.
You have that [unemployment] money spent on rent and groceries and clothes. So you increase demand for goods and services. Then there’s the fiscal multiplier. Then from there, that’s where you get the total amount of economic activity generated — the boost to GDP. And then from there, there’s a direct walk to jobs created.
It’s a rough measure. But that’s an idea of the scope.
Scott Walker also argued that instead of “just putting a check out,” the government should require more from people on unemployment, in terms of entering job training and looking more often for work. What do you make of that argument?
We do know that it’s already keeping people in the labor market, looking for work. There’s good evidence that receiving benefits actually keeps people looking for work.
A helpful bit of information, to know if the reason people are long-term unemployed is because they’re not looking hard enough, is the following: You’d want to know if our long-term unemployment situation is somehow weird, if it’s unexpected, if there’s something going on with our long-term unemployed, like they’re not looking as hard as they should, or they’re not being as flexible as they should. Like, is there something about these benefits that’s keeping them from doing those things? And that you don’t find.
So there’s a paper by Jesse Rothstein that looks very carefully at today’s long-term unemployment situation in the historical context. And he found that what we’re experiencing now is exactly what you would expect given three things: given how deep the period of economic weakness has been; how long it’s been as bad as it’s been; and then a little bit of this longer-term trend in long-term unemployment share. Which has to do with declining incidences of temporary layoff and stuff like that — but that’s not a big component.
We’re not seeing something abnormal right now in the long-term unemployment situation, except for an incredibly abnormally weak labor market that’s been incredibly abnormally weak for a very long time. Once you have that, then what’s going on with long-term unemployment is exactly what you would expect.
So it’s not like, “if we just get them to look harder, they’re going to find jobs.” The real problem, why we have this long-term unemployment crisis, is that the labor market has been so weak for so long.
So making them jump through more hoops will definitely increase administrative costs, but it’s not going to generate more jobs. Unless he’s looking at it as a jobs program to hire more public sector workers to deal with more administration. But I don’t think that was probably his angle. The real problem right now is weak demand for workers, and this won’t touch that.
The reason we have elevated unemployment is not that workers don’t have the right skills for the jobs that are available. It’s just that we don’t have jobs available. It’s not like training can never help an individual, but that’s not why we have high unemployment right now.
By: Josh Eidelson, Salon, January 8, 2014
“The Social Justice Majority”: We Are Far More United Than Our Politics Permit Us To Be
Why are we arguing about issues that were settled decades ago? Why, for example, is it so hard to extend unemployment insurance at a time when the jobless rate nationally is still at 7 percent and higher than that in 21 states ?
As the Senate votes this week on help for the unemployed, Democrats will be scrambling to win support from the handful of Republicans they’ll need to get the required 60 votes. The GOP-led House, in the meantime, shows no signs of moving on the matter.
It hasn’t always been like this. It was not some socialist but a president named George W. Bush who declared: “These Americans rely on their unemployment benefits to pay for the mortgage or rent, food and other critical bills. They need our assistance in these difficult times, and we cannot let them down.”
Bush spoke those words, as Jason Sattler of the National Memo noted, in December 2002, when the unemployment rate was a full point lower than it is today.
Similarly, raising the minimum wage wasn’t always so complicated. The parties had their differences, but a solid block of Republicans once saw regular increases as a just way of spreading the benefits of economic growth.
The contention over unemployment insurance and the minimum wage reflects the larger problem in American politics. Rather than discussing what we need to do to secure our future, we are spending most of our energy re-litigating the past.
A substantial part of the conservative movement is now determined to blow up the national consensus that has prevailed since the Progressive and New Deal eras. The consensus envisions a capitalist economy tempered by government intervention to reduce inequities and soften the cruelties that the normal workings of the market can sometimes inflict.
This bipartisan understanding meant that conservatives such as Bush fully accepted that it was shameful to allow fellow citizens who had done nothing wrong to suffer because they had been temporarily overwhelmed by economic forces beyond their control.
The current debate is flawed for another reason: It persistently exaggerates how divided we are. Of course there are vast cultural differences across our nation. It’s not just a cliche that the worldview of a white evangelical Christian in Mississippi is quite distant from the outlook of a secularist on Manhattan’s Upper West Side. African Americans, Latinos, Asians and whites can offer rather diverse interpretations of the meaning of our national story.
But on core questions involving social justice, we are far more united than our politics permit us to be. A survey released at the end of December by Hart Research, a Democratic polling firm, found that Americans supported extending unemployment insurance by a margin of 55 percent to 34 percent. Several recent surveys, including a Fox News poll, found that about two-thirds of Americans support an increase in the minimum wage.
This leads to two conclusions. The first is that most Americans broadly accept the New Deal consensus. We may disagree about this or that regulation or spending program. We may squabble over exactly how our approaches to policy should be updated for a new century. But there is far more agreement among the American people than there is among Washington lobbies, members of Congress or political commentators on the core proposition that government should help us through rough patches and guarantee a certain level of economic fairness.
The second conclusion is that we have to stop letting the politics of culture wars so dominate our thinking that we forget how much we share when it comes to life’s day-to-day struggles and what we can do to ease them. Disputes over personal morals and lifestyle choices may get more page views or rating points, but they do little to improve anyone’s standard of living.
The minimum-wage increase is typically labeled a “liberal” idea. Yet many grass-roots Republicans see respect for those who work hard as rooted in sound conservative principles demanding decent compensation for a day’s labor. An evangelical might see fair pay as a biblical imperative while a secularist might view the question through a more worldly philosophical prism. Nonetheless, their distinctive reasoning processes lead them to the same place.
President Obama’s old line challenging the idea of red and blue Americas unalterably opposed to each other seems terribly outdated or naive. Electorally, at least, those divisions are still painfully obvious. But on matters of economic justice, we shouldn’t let a defective political system distract us from what we have in common.
By: E. J. Dionne, Jr., Opinion Writer, The Washington Post, January 5, 2014
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