Tag: Poverty

For Preventing the Poor People in Britain from being a burden to Their Country, and For Making Them Beneficial to The Public

Un hommage á Jonathan Swift

Whenever I travel the country and listen to the newscasts and read the papers, it has become evident that the poor are a significant burden upon the country. Instead of working, women go begging at food banks to provide for their children.  Others sit on the streets with their offspring begging money from their betters. Clearly these lazy creatures assume that we as a society have some responsibility to ensure the existence of their offspring. Moreover, since they have to care for their children, they obviously have no time to actually work to provide for their existence. Their lack of property and their inability to ensure their and their offspring’s survival is threatening the very nature of our society.  

A recent analysis of IRS data on income and wealth in the United States found that the gap  between the richest 1 percent and the rest of America is the widest it’s been since the 1920’s.

The top 1 percent of U.S. earners collected 19.3 percent of household income in 2012, their largest share in Internal Revenue Service figures going back a century.

U.S. income inequality has been growing for almost three decades. But until last year, the top 1 percent’s share of pre-tax income had not yet surpassed the 18.7 percent it reached in 1927, according to an analysis of IRS figures dating to 1913 by economists at the University of California, Berkeley, the Paris School of Economics and Oxford University.

One of them, Emmanuel Saez of the University of California, Berkeley, said the incomes of the richest Americans might have surged last year in part because they cashed in stock holdings to avoid higher capital gains taxes that took effect in January.

That soaring stock market means nothing to 99% of Americans, it just proves the rich are getting richer.

According to DSWright at the FDL News Desk, we may rapidly be approaching the bursting of another bubble:

But what’s worse is that the 1% hit a consumption limit – they can only buy so many cars, meals, homes – so the only way they can benefit from their wealth is to invest in financial assets which inflates those assets into bubbles. Then the bubbles pop, and in theory, they should eat the losses. But what we all know, or should know by now, is that the 1% refuses to eat the losses and instead use what is left of their wealth to buy favors in Washington to make them whole at your expense. It is a pretty awful system, especially if you are in the 99%.

And now due to the destruction of the labor movement, wages have frozen and even more income from production is going to the top 1% who are re-inflating the financial markets and having a great time doing so as the corporate profits to wages ratio is massive. This while America continues to have record unemployment and underemployment.

The 99% do not have a seat at the economic table as Washington ignores their needs and bends over backwards to help the 1% campaign contributor class. And when you aren’t at the table you are on the menu.

Freelance writer Sasha Abramsky joined Democracy Now! hosts Amy Goodman and Juan González to discuss his new book “The American Way of Poverty: How the Other Half Still Lives.” and ther reocrd breaking income inequality in the US.

If you're stuck working minimum wage jobs like I am, you know what everyone else who earns the lowest pay allowed by law knows: You can't live on minimum wage, certainly not on the part-time hours employers give.

That's why it's heartening to see fast food workers across the nation going on strike to demand better pay.  I pull in $8.30 an hour at around twenty hours a week.  I can't afford even the cheapest of apartments on that.  As a single white male with no dependents, I am ineligible for most public assistance, including welfare, housing assistance, and medical assistance (Medicaid).  I get a pittance in food stamps every month, but it's not enough to keep me fed on a regular basis.  I'm lucky if I can eat once a day.

My entire paycheck is spent paying bills before I even get it deposited to my bank account, which is typically at or near empty.  That is the reality for me and for everyone else who works a minimum wage job.

Some stupid motherfucker was posting on a friend's Facebook page yesterday about how unfair it would be if fast food workers got an increase in wages to earn the same amount as he does in his construction job, because he doesn't expect that an increase in the minimum wage would necessarily bring an increase in his own pay.  According to him, we minimum wage monkeys don't do any real labor, and therefore don't deserve to make anywhere near the same amount of money as someone whose job involves backbreaking physical labor.  This same stupid asshole thinks that we can get higher paying jobs if we wanted to, and that we don't want to.  Bullshit.  If I could get a job working construction, I'd be working it right now.  I've applied for those jobs and they haven't even granted so much as one interview.  Most require that I have my own transportation, which I can't afford because I don't make enough to afford my own vehicle.  Those that don't haven't deigned to give me an interview either.

I can tell you right now that this ignoramus wouldn't last even one full shift working at McDonald's.  He couldn't keep up with the fast pace, and he certainly couldn't deal with impatient, often angry customers, standing on his feet for eight hours or more.  I've done that and it's exhausting.  My back is still screwed up from nearly three years of bending over a work table marinating, trussing, and spitting chicken carcasses for roasting, and I left that job in 2005 — eight years ago.  These days I grind lenses for an eyewear company for barely above my state's minimum wage.  I have to clock out for lunch if I work over six hours, costing me a half hour's pay, because the corporation for which I work doesn't want to pay me for a shift that's long enough to necessitate taking a few minutes to restore my energy levels.

News articles about the fast food strike state that the demand for fifteen dollars per hour would raise pay for full-time workers to thirty-one thousand annually, more than double the current annual average of fifteen thousand.  Some, however, quote workers pointing out that most minimum wage jobs don't provide full time hours.  They allow twenty or under, meaning someone like me might make $7,500 a year or less, and very often it's a lot less.

In an article on NBC Washington, it's revealed that financial woes actually have a negative impact on a person's IQ.  That is, the sheer stress of not being able to afford even the basics, like adequate food and drink, is literally making people dumber.  Starvation wages lead to actual starvation, so the body can't get the nutrients it needs to maintain a healthy brain.  Financial worries force people to devote more of their mental power to worrying over how they'll afford to live, leaving much less time and energy for other matters.

Who the hell can live on the current minimum wage?  No one, not without public assistance, which is already slashed to the bone with Republicans and Democrats cutting the social safety net even further.  Many of us are either homeless or soon shall be (myself included).  No one is out there advocating for us.  No one is doing a damned thing to lighten our financial burden.  The vast majority of our tax dollars (yes, we poor folk do pay taxes) go to fund wars and Wall Street, with things like education, housing, food, and Social Security getting less and less.  Yet we're told by ignorant assholes to “suck it up”, stop asking for “handouts”, to pull ourselves up by the bootstraps and make do or die.  If we could do that on what we get paid, we would.  But we can't, and even though we work and pay taxes (unlike the obscenely rich), we aren't allowed to have a say in how our tax dollars are spent.

So what's to be done?  Well, I don't know about you, but I for one have no intention of crossing any picket lines, and neither should you.  Don't let striking fast food workers do this all by themselves.  Support them in whatever way you can.  Join them, in fact.  If you know in your heart that everyone has the right to work “a useful and remunerative job” that pays enough to live on, then join them in solidarity and demand an increase in the minimum wage to fifteen dollars an hour.  Call and write members of Congress in both houses, call and write the White House, march on Washington in the millions and shut the place down, join striking workers on the picket line, donate whatever money and food you can afford to help people who are starving.

This country and this planet are going to hell in a hand basket, but only if We the people let them.  Don't let them.

In the first of a seven part series, author and journalist, Chris Hedges sits down with Real News Network’s Paul Jay discussing how urban poverty led him to question everything and his commitment to the social movement:

I wanted to be an inner-city minister. You know, I was at the time. I was planning on being ordained. I was planning on spending my life in the inner-city.

And I had a kind of clash (and I write about it in the first chapter of my book Losing Moses on the Freeway: The 10 Commandments in America) with the institutional church and liberal institutions like Harvard Divinity School that like the poor but didn’t like the smell of the poor. They spent a lot of time talking about empowering people they never met. And that hypocrisy was something that I had great difficulty with. [..]

And I’ve always placed myself in or amongst the oppressed. Whether that was in Gaza, whether that was in El Salvador, whether that was in Sarajevo, I’ve always positioned myself as a reporter in a place where I was amplifying or giving voice to those who were being brutally oppressed. [..]

I would say actually the really seminal moment was moving into the inner city and watching what we do to our poor, the warehousing of our poor, the shattering of lives, especially the lives of children, of poor children. That maybe rattled me more than almost anything I saw. And I’ve seen horrific things. I remember going back to the chaplain at Colgate after a few months of living in the projects and just walking into his office and sitting down and saying, are we created to suffer? And his answer was: is there any love that isn’t?

And I think for a white person of relative privilege to confront the cruelty of what we do to poor people of color in this country and to begin to understand institutional forms of racism, all the mechanisms by which we ensure that the poor remain poor in, you know, what Malcolm X and Martin Luther King correctly called these internal colonies really rattled me, really shook me. It made me question all sorts of things–the myth we tell ourselves about ourselves, the nature of capitalism, the nature of racism, exploitation.

So those two and a half years I spent in Roxbury were quite profound–not that, of course, I wasn’t stunned at the evils of empire in places like El Salvador or Gaza or anywhere else. But Roxbury was quite a shock for me.

This piece is a summary of a paper that I presented at the Left Forum in a panel organised by Geminijen. If you want to see a copy of the longer paper (which is being edited for English and clarity), send me a personal message here with your email and I will send it to you. Fran Luck who is the producer of the radio series “Joy of Resistance: Largest Minority” on WBAI was in the audience and asked us to appear on her show. If you would like to listen to Geminijen, Diana Zevala (who has written for the ACM on education), Barbara Garson and me, please click here: http://archive.wbai.org/files/mp3/wbai_130703_210001wed9pm10pm.mp3).

While in no way denying the impact of the introduction of austerity upon the working class, the disabled and the poor as a whole, there is no question that the impact of austerity on women is far greater. This is due to the job losses in the state sector where women’s labour is predominant, our historically lower wages due to the undervaluation of traditional women’s labour in a capitalist labour market leading to greater dependence upon the social welfare state, and our overwhelming responsibility for reproduction of the working class and how that impacts on our working lives.  The failure of the state to provide completely for social reproduction especially in childcare and care for the infirm and disabled has resulted in women having: 1) discontinuous working lives; 2) and the predominance of our labour in part-time employment.

With incomes falling in the advanced capitalist world as part of general economic policy, women face greater threats than men due to our responsibility as primary caretakers of children, the disabled and the elderly. Women are facing lower incomes, lower pensions, and an increasing reluctance for the state to support women in the workplace through provision of child-care and after-school programmes and shouldering carer responsibilities for the elderly and infirm. Given the transformations in general employment possibilities towards increasingly underemployed and part-time labour, we will begin to face competition from men for the jobs we have normally held while benefits are increasingly run down.



We face increasing economic insecurity without sufficient state assistance to ensure that our children and families can have a decent standard of living provided through employment. Women can no longer depend upon the fact that our labour is of sufficient value to capitalists as men also face increasing precariousness in their employment, and in the absence of a strong labour movement or left-wing movements, can serve the same role of an easily intimidated low-paid work force.

The destruction of the public sector enabling the weakening of the last bastion of trade union organisation to force through even lower wages and a reduction in social subsistence levels of wages along with a further deterioration in working conditions on the basis of non-competition with emerging and peripheral economies is nothing less than a race to the bottom and women will be the first, but not the last, victims of neoliberal economics in the advanced capitalist world.

This piece will be divided into 3 parts. The first is composed of some general statements on austerity. The second part will discuss the women’s labour market in Britain and the impact of austerity. The third part addresses the attack on the universal social welfare state in Britain and its impact upon women.

The story of American families facing food insecurity is as frustrating as it is heartbreaking, because the truth is as avoidable as it is tragic. Here in the richest country on earth, 50 million of us – one in six Americans – go hungry. More than a third of them are children. And yet Congress can’t pass a Farm Bill because our representatives continue to fight over how many billions to slash from the Supplemental Nutrition Assistance Program, better known as food stamps. The debate is filled with tired clichés about freeloaders undeserving of government help, living large at the expense of honest, hardworking taxpayers. But a new documentary, A Place at the Table, paints a truer picture of America’s poor.

“The cost of food insecurity, obesity and malnutrition is way larger than it is to feed kids nutritious food,” Kristi Jacobson, one of the film’s directors and producers, tells Bill. She and Mariana Chilton, director of the Center for Hunger-Free Communities, explain to Bill how hunger hits hard at people from every walk of life. [..]

Later, Greg Kaufmann – poverty correspondent for The Nation – talks about how the poor have been stereotyped and demonized in an effort to justify huge cuts in food stamps and other crucial programs for low-income Americans.

As more and more Americans fall into or near poverty income level, congress is debating a new Farm Bill which will impact on the ability of people to feed themselves and their families:

While the legislation will set farm policy and impact food prices for the next five years, many forget that roughly 80 percent of the funding in the bill goes to providing food for the country’s less fortunate. At the end of 2012, according to the USDA, there were nearly 48 million people on food stamps.

In the Senate Agriculture Committee Tuesday, lawmakers passed its version of the bill, while the House Agriculture Committee will begin marking up its bill Wednesday. The versions of the key legislation remain vastly different in how they handle the country’s food assistance program, and will need to be reconciled before current regulations expire in September.

The Senate’s legislation would make about $4 billion in reductions to the Supplemental Nutrition Assistance Program, or SNAP, during the next decade. The House version would cut five times as much – $20 billion through the same time period.

According to a new report from the International Human Rights Clinic at NYU’s School of Law, one in six Americans are facing food insecurity (pdf):

The united states is facing a food security crisis:

One in six Americans lives in a household that cannot afford adequate food. Of these 50 million individuals, nearly 17 million are children. Food insecurity has skyrocketed since the economic downturn, with an additional 14 million people classified as food insecure in 2011 than in 2007. For these individuals, being food insecure means living with trade-offs that no one should have to face,  like choosing between buying food and receiving medical care or paying the bills. Many food insecure people also face tough choices about the quality of food they eat, since low-quality processed foods are often more affordable and accessible than fresh and nutritious foods. Food insecurity takes a serious toll on individuals, families, and communities and has significant consequences for health and educational outcomes, especially for children. Food insecurity is also enormously expensive for society. According to one estimate, the cost of hunger and food insecurity in the United States amounted to $167.5 billion in 2010.

Additionally, the report shows that the existing program a fail. as Aviv Shen notes in her article at Think Progress:

(T)he four biggest food assistance programs fall short for as many as 50 million food insecure households. Eligibility requirements are already so strict that one in four households classified as food insecure were still considered too high-income to receive benefits from the Supplemental Nutrition Assistance Program (SNAP). Even families considered poor enough for food aid only get a pittance that runs out quickly; for instance, the maximum benefit for a family of four is $668 a month, or a little under $2 per meal for each family member.

To demonstrate the impossibility of surviving on food stamps, Sen. Chris Murphy (D-CT) recently spent a week eating on $4.80 a day, mainly consuming ramen noodles, a peanut butter and jelly sandwich, and a banana. “I’m hungry for five days…I lost six pounds in four days,” Murphy said upon concluding the experiment. He also realized that nutritious food and produce was far, far out of reach for people living on SNAP benefits. Indeed, obesity and related diseases are common among SNAP recipients who simply can’t afford nutritious food.

Co-author and faculty director of the International Human Rights Clinic at NYU’s School of Law, Smita Narula was a guest on Democracy Now with hosts Amy Goodman and Juan Gonzalez.

Income inequality is growing in the United States. Occupy Wall Street brought the income gap between the 99% and the 1% into the light and changed the conversation. Bill Moyers explores what happened in Silicon Valley where the homeless problem has grown 20% in the last two years and tent cities are common place among the million dollar mansions. Poverty shows no sign of abating despite the market thriving.

“A petty, narcissistic, pridefully ignorant politics has come to dominate and paralyze our government,” says Bill, “while millions of people keep falling through the gaping hole that has turned us into the United States of Inequality.”

Our growing income inequality causes 43% of the projected Social Security shortfall

by Gaius Publius, Americablog

Upward redistribution of income – what we’ve been calling the “looting of the economy” by the billionaire CEO class – is responsible for at least 43% of the projected Social Security shortfall for the next 75 years.

Let that sink in. This is yet another way that the looters want the victims to pay for their victimhood and hold the looters lossless. The CEO class has worked for three decades to create an economy where working people have a far less share of the economic growth than they used to have. One of the results of that inequity was an unexpected shortfall in the income collected by Social Security.

Think about it – everyone could see that the big demographic shift, the baby-boom generation, would show up on schedule. They could see that in the 1950s. But who knew 30 years ago (1983, if you’re not subtracting quickly), when the last Social Security adjustment occurred, that Reagan, Clinton, Bush and Obama would create a bipartisan consensus around handing all the fruits of productivity to the “rich and famous” set that you’re not a part of? That was not part of the calculation in those golden Reagan Days, and the Social Security Trust Fund has suffered ever since.

City Report Shows a Growing Number Are Near Poverty

by Sam Roberts

The rise in New York City’s poverty rate as a result of the recession has apparently eased, but not before pushing nearly half of the city’s population into the ranks of the poor or near-poor in 2011, according to an analysis by the Bloomberg administration.

That year, according to the city’s measure, about 46 percent of New Yorkers were making less than 150 percent of the poverty threshold, a benchmark used to describe people who are not officially poor but who still struggle to get by. That represents a rise of almost two percentage points since 2009, when the nation’s recession officially ended. [..]

Though more New Yorkers were working in 2011 than the year before, larger shares of children and working adults were classified as poor in 2011, and the proportions of Asians, noncitizens and Queens residents – overlapping groups – each rose by more than four percentage points since 2008.

Last week the House of Representatives killed a proposal that would have raised the minimum wage tp $10.10 an hour over two years. It failed with not one Republican vote in favor and six Democrats voting against it, as well. In an article for the Los Angeles Times, David Horsey says that while both Democratic and Republican politicians express concern for the middle class, they have failed miserably to address the growing class divide in the Unites States.

As politicians in Washington slam one another over competing budget priorities, most avoid facing up to the disturbing question behind all the numbers: Is the American Dream temporarily stalled or permanently kaput? [..]

This is not the country we like to think we are and it is not the country our political leaders are willing to admit they have helped create. Thirty years of catering to Wall Street, big business and the U.S. Chamber of Commerce has not boosted the American economy the way it was meant to do. Yes, the financial industry and giant corporations are awash in wealth, but they are not hiring more workers, they are not paying better pay, they are not enhancing benefits, they are not sharing the wealth. On the contrary, the typical American is working much harder for worse compensation. He or she is paying a bigger share of the healthcare bill and has no pension plan waiting at the end of the line.

This is an all-American crisis bigger than the deficit or the war on terrorism, but no one seems ready to take it on.

Mr. Horsey notes a rundown of the facts about today’s American economy by economics columnist Jon Talton:

• Worker productivity has increased nearly 23% since 2000, but hourly wages rose a pitiful 0.5% in that period.

• Taking a longer view back to 1973, productivity is up 80% between now and then, but pay is up only 11%.

• People at the bottom of the wage scale are earning less now than similar workers in 1979.

• Employees in the middle of the wage scale are getting 6% more than in 1979, but all that increase happened in the 1990s.

• High earners, meanwhile, are making 37% more than back in the 1970s, and the much-talked-about folks in the top 1% have enjoyed a 131% increase in earnings.

In his article, Mr. Talton furthers concludes:

This reality is at complete odds of our self-image as the Land of Opportunity. It is also a change from a previous America. We’ve been losing ground. Some reasons are obvious, others are complex. Many are familiar to readers of this column, and a few are the subject of sharp debate.

Globalization, offshoring and technology have decimated the old blue-collar middle class. The economy has shifted to service jobs that not only tend to pay less but are increasingly part time and temporary. [..]

Whatever the causes, little is being done to correct our trajectory into historic high inequality that is greater than other advanced nations.

Things may have to get worse before change happens. One thing is clear: Our situation is unsustainable and un-American.

Economist Richard Wolff joins Bill to shine light on the disaster left behind in capitalism’s wake, and to discuss the fight for economic justice, including a fair minimum wage. A Professor of Economics Emeritus at the University of Massachusetts, and currently Visiting Professor in the Graduate Program in International Affairs of the New School. [..]

“We have this disparity getting wider and wider between those for whom capitalism continues to deliver the goods by all means, [and] a growing majority in this society facing harder and harder times,” Wolff tells Bill. “And that’s what provokes some of us to begin to say it’s a systemic problem.”

Nobel Prize winning economist Joseph E. Stiglitz posted an interesting piece in the New York Times Opinionator that examines how income inequality is holding back the economic recovery:

The re-election of President Obama was like a Rorschach test, subject to many interpretations. In this election, each side debated issues that deeply worry me: the long malaise into which the economy seems to be settling, and the growing divide between the 1 percent and the rest – an inequality not only of outcomes but also of opportunity. To me, these problems are two sides of the same coin: with inequality at its highest level since before the Depression, a robust recovery will be difficult in the short term, and the American dream – a good life in exchange for hard work – is slowly dying.

Politicians typically talk about rising inequality and the sluggish recovery as separate phenomena, when they are in fact intertwined. Inequality stifles, restrains and holds back our growth. [..]

Prof. Stiglitz notes four factors that are the cause:

The most immediate is that our middle class is too weak to support the consumer spending that has historically driven our economic growth. [..] The growth in the decade before the crisis was unsustainable – it was reliant on the bottom 80 percent consuming about 110 percent of their income.

Second, the hollowing out of the middle class since the 1970s, a phenomenon interrupted only briefly in the 1990s, means that they are unable to invest in their future, by educating themselves and their children and by starting or improving businesses. [..]

Third, the weakness of the middle class is holding back tax receipts, especially because those at the top are so adroit in avoiding taxes and in getting Washington to give them tax breaks. [..]

Fourth, inequality is associated with more frequent and more severe boom-and-bust cycles that make our economy more volatile and vulnerable.

Noting that one fifth of US children live in poverty, the professor points out that children living in Canada, France, Germany and Sweden have better economic futures simply because education and training are more affordable. The countries that responded best to the crisis on Europe had strong unions and strong social safety nets, something that this country is seems hell bent to destroy.

However, Prof. Stiglitz’s contemporary, Paul Krugman, somewhat disagrees arguing that these factors may have caused the recession, they are less of a draw on the recovery than Prof. Stiglits beleives. In the face of the recovery, Prof. Krugman rejects the “underconsumption” and tax receipt hypothesis:

It’s true that at any given point in time the rich have much higher savings rates than the poor. Since Milton Friedman, however, we’ve know that this fact is to an important degree a sort of statistical illusion. Consumer spending tends to reflect expected income over an extended period. If you take a sample of people with high incomes, you will disproportionally include people who are having an especially good year, and will therefore be saving a lot; correspondingly, a sample of people with low incomes will include many having a particularly bad year, and hence living off savings. So the cross-sectional evidence on saving doesn’t tell you that a sustained higher concentration of incomes at the top will lead to higher savings; it really tells you nothing at all about what will happen. [..]

Joe also argues that high income inequality depresses tax receipts, fueling fiscal fears. Again, I have trouble with this point: our tax system isn’t as progressive as it should be, but it is at least mildly progressive even when you take state and local taxes into account.

I’m in agreement with Prof Stiglitz on this, even with my rudimentary knowledge of economics. It would seem logical that if incomes are falling and the middle class is shrinking, then consumption of goods and services will fall as people have less disposable income. It follows that all tax revenues would also decrease.