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Brandon Roberts

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Number of Working Poor Families Continues to Grow: Does Work Still Pay?

Posted: 12/20/11 12:56 PM ET

It's time for policy makers to put American working families first. As more families drop from the middle class, the number of working families that are low-income increases. The latest Census numbers show that the percentage and number of American low-income families who are working -- yes working despite the country's significant job loss -- has increased for the third year in a row. Now, more than one in three working families has earnings below 200 percent of poverty. These families are the backbone of the economy -- caring for our children and seniors, preparing our food, working the cash registers, and keeping our homes and businesses clean. Policies at both the state and federal levels can help change this trajectory of a shrinking middle class and a growing number of working families who struggle to make ends meet.

This week, the Working Poor Families Project released a new report, Overlooked and Underpaid: Number of Low-Income Working Families Increases to 10.2 Million that provides national and state level data on the number and conditions of low-income working families in America. Using the latest U. S. Census data for 2010, the report notes that the U.S. has over 10 million working low-income families. Some of these families were formerly middle class, but pay cuts, job loss, and reduction in work hours have taken an economic toll. There are noteworthy and disturbing details in these numbers. Families with at least one minority parent are twice as likely to be low-income as white families. Also, poverty is not equally distributed across the country; geography plays an important role. In 21 states, most in the South and West, a third or more of all working families are low-income.

Perhaps most disturbing is the fact that 23 million children, more than one in three of all American children, live in these families. In just one year, from 2009 to 2010, the number of children in low-income working families increased by more than 500,000. While these children see their parents work, they also see that work doesn't pay. It's often assumed that children are poor because their parents are not working, but in 2010, more than 70 percent of all low-income children were members of working families. The sense of hope and opportunity is certainly challenged for children in low-income working families.

What can policymakers do to change this decline for working families? We know that higher education and skills result in lower unemployment and higher average earnings. Our knowledge-based economy and the economy of the future, requires higher skills. A national study forecasts that 63 percent of all job openings occurring by 2018 will require workers to have some level of post-secondary education.

Policy makers can help expand the number of low-skilled adults who enroll in education and skills development programs and obtain post-secondary credentials that can facilitate economic mobility; eliminating the ability to benefit provision of the Pell Grant Program is a policy going the wrong way as it will limit economic opportunity for parents in working families. Policy makers can also work to improve wages, benefits, and supports like child and health care for low-income working families. Finally, we know that more good jobs are needed. State and federal officials can stimulate the creation of more good jobs. American policy makers and families need to structure a future that increases opportunity and supports economic mobility. We can not wait for an economic recovery to invest in our families.

 
 
 
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01:43 PM on 12/21/2011
No, working does not pay in this country anyway. You are better off finding your own way, farming your own land, starting an easy business to run, get off the grid, and truth be told crime does pay, look at the drug cartels and arms dealers...look at running for political office. That is probably the best paying job for the least work available. And you can collect tons of legal bribes and graft. Or get a degree that enables you to rob people blind. Doctor, dentist, shrink, lawyer, etc.
03:05 PM on 12/21/2011
Very good insight of the current business climate in the USA.
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Gestas
Mountain Man
12:02 PM on 12/21/2011
Since 9/11 this country has spent a fortune of our Tax Dollars on the, for profit Counterrorism Business....not many,, if any Blue Collar Jobs there.
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koos458
We Live In A Kleptocracy
11:06 AM on 12/21/2011
America: The race to the bottom.
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10:54 AM on 12/21/2011
Wish it were so simplistic. Rather than starting another government project to tax those that work hard, perhaps you could look at the effect of our government itself on the working poor.

Your sugardaddies that are the basis for all of these destructive projects are also falling.

Time to learn to think. Time to learn to create things, ideas of value.

Time to realize that by helping such a large part of our culture, you are actually destroying.

Time to put away this "Progressive Persecution Posse" and get on with a *productive* life. No more grants. No more "movements". We can't afford such luxuries.
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Jondrea Smith
untied dog in a dogmatic society
12:51 PM on 12/23/2011
Why can't we afford them? Is it because the resources don't exist, or because they've been sequestered?
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Kristin Talbott
One should always be a little improbable.
10:18 AM on 12/21/2011
Allowing an employer to pay less than a living wage in exchange for an employee giving up five days out of every seven, morning till night, really amounts to allowing a form of slavery. It's too large a chunk of time to demand in the first place and makes having any real life outside of work impossible, but when you add to that the fact even after sacrificing a huge percentage of their overall available quality time each week to working, workers often still receive paychecks that don't even constitute half of what a true living wage would be, it becomes an absurdity.

Any minimum wage that is pegged at less than a living wage is nothing more than government-sanctioned theft committed by the businesses of this country, and it's not just the low-wage workers that are being stolen from, it's every taxpayer, because often wages are SO low that full-time workers still qualify for government assistance.
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Opposition Research
Studying the enemies of civil liberty for 20 years
01:52 PM on 12/21/2011
Funny, I was thinking exactly that thought yesterday.

Splendidly said.

There is a minimum value to a person giving up a *HUGE* chunk of their life and time -- which is irrecoverable -- to the benefit and enrichment of another.

That value, from an ethical standpoint, *MUST* be livable, or it is stealing and slavery.
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Opposition Research
Studying the enemies of civil liberty for 20 years
10:10 AM on 12/21/2011
After reading the shockingly amoral comments of the hyper-capitalists out here, I am coming to the conclusion that the ideology embraced by *these* people is even more vile, dangerous and inhuman than the worst of the theocratic right.

The complete, total lack of a trace of human ethics leaves me speechless. All that matters is money. Humanity counts for *ZERO*. At least the Religious Right has a *LITTLE* feeling for humanity.

They literally see human beings as meaningless things whose sole purpose is to serve an ownership/controlling class. They literally see human beings existing only to work, all day, all evening, all their lives, and doing so to the service of this controlling class. Nothing else matters -- we are taught that we have a lifetime responsibility to work for *THEM* -- while they have *NO* reciprocal responsibility to the rest of us whatsoever.

That is the mindset of the worst plantation owner.

Capitalism was working great when it had a decent, human ethical system guiding it. That ethical system is gone, replaced by something cold, empty, and mechanical.

Keep this up, people, and if you think Occupy is a pain in the rear, wait until you have to deal with a mob 80,000,000 strong every day.
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MSROADKILL612
german sausages are wurst
05:02 AM on 12/21/2011
here is a charming link for all you battlers out there

http://www.nytimes.com/2011/12/21/nyregion/senator-carl-kruger-pleads-guilty-in-corruption-case.html?pagewanted=2&hp#

2 gay gynacologists (hmm) & a corrupt ny senator
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02:49 AM on 12/21/2011
Declining upward mobility...

http://www.counterpunch.org/roberts10082010.html
Paul Craig Roberts: America's Third World Economy

"For a number of years I reported on the monthly nonfarm payroll jobs data. The data did not support the praises economists were singing to the “New Economy.” The “New Economy” consisted, allegedly, of financial services, innovation, and high-tech services.

This economy was taking the place of the old “dirty fingernail” economy of industry and manufacturing. Education would retrain the workforce, and we would move on to a higher level of prosperity.

Time after time I reported that there was no sign of the “New Economy” jobs, but that the old economy jobs were disappearing. The only net new jobs were in lowly paid domestic services such as waitresses and bartenders, retail clerks, health care and social assistance (mainly ambulatory health care services), and, before the bubble burst, construction.

The facts, issued monthly by the US Bureau of Labor Statistics, had no impact on the ”New Economy” propaganda. Economists continued to wax eloquently about how globalism was a boon for our future.

The millions of unemployed today are blamed on the popped real estate bubble and the subprime derivative financial crisis. However, the US economy has been losing jobs for a decade. As manufacturing, information technology, software engineering, research, development, and tradable professional services have been moved offshore, the American middle class has shriveled. The ladders of upward mobility that made American an “opportunity society” have been dismantled..."
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silverstreet
All you need is love
10:15 AM on 12/21/2011
Paul Craig Roberts -- my favorite writer
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01:06 PM on 12/21/2011
Mine too.
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MSROADKILL612
german sausages are wurst
01:18 AM on 12/21/2011
blows me away how hard & unempathetic americans a few rungs up the ladder from the bottom can be to their fellow americans.

many frugal hard working less privideged struggle from pay check to paycheck. but no they are bums cos they didnt have your advantages &/or luck

I bet many former middle class repubs have become more empathetic now they are on the bottom rung.
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10:56 AM on 12/21/2011
It blows me away to see how naive one can be.
10:50 PM on 12/20/2011
I will probably get hit upside the head for this post by the faithful ever prevailant winger club commenteurs (that reassuringly seem to be in the majority), but I'll go ahead: I like the way Van Jones puts it "socialize the pain/ privatize the gain." Take it, run, bring it, make a fool of me, let me hear your Limbauhism?
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10:57 AM on 12/21/2011
No pain, no gain.
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Y3rMawm
veni, vidi, bibi.
10:19 PM on 12/20/2011
Work would pay, if government would allow prices to fall. Fall they will. Gravity will not be repealed, neither will the power of the markets.
08:48 PM on 12/20/2011
If work doesn't pay, the safety net needs to be cut, How can one maoally justify letting people laze on welfare when they could be working.
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Martin Privat
for evil to triumph, good men need only do nothing
10:19 PM on 12/20/2011
Obviously you didn't read the article. "Working Poor" it was even in the title. But I guess you only read what you want to see?
01:04 AM on 12/21/2011
The article includes a discussion of the premise of not working at all. You don't know what you are talking about.
Shesme
My micro-bio will no longer be silent
11:18 PM on 12/20/2011
What makes you say insane things that defy logic?
01:04 AM on 12/21/2011
What makes you so gullible?
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frank day
Republican = FAIL
07:15 PM on 12/20/2011
Most families with children earning the median family income are extremely stressed financially.

Housing, transportation, heating, education, and medical costs have all continued to increase

as wages remain stagnant.

The majority of the nation's poor are children. And the vast majority are white.
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Paul OhioSprtzfan Sink
07:35 PM on 12/20/2011
You are 100% correct.Most politicians dont realize this,or dont care as long as they have their job.Another reason these bums need to keep losing their jobs until they realize we put them there to represent us and look out for our good and we will keep electing others until they do .
08:49 PM on 12/20/2011
But somehow they manage to have cellphones, cable television, and eat out weekly. Even with all that stress.
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Martin Privat
for evil to triumph, good men need only do nothing
10:20 PM on 12/20/2011
How do you know this good Sir? Do you have a link or is this an assumption pulled from the nether-regions to justify your disdain for anything poor?
02:05 AM on 12/21/2011
I was right....that is propaganda from the right wing think tanks like the Heritage Foundation.

Have you EVER been poor?
Working poor?

Sometimes people have goodies from when they were working OR making better wages.
Sometimes they save up.
Sometimes they buy on credit.

Many cell phones are cheap.

Some people scrimp to pay for cable and internet....since there is no money for movies, etc.
Often several adults in the family are underemployed.....family and friends are doubling up because there isn't enough money to live separately.

Eat out?
Cheap take out Chinese?
A take out pizza once in a while?
Even a beer or two occasionally?

Of course, the right wing think tanks have no idea what it is like to live in poorly maintained apartments, deal with roaches, put up with drug dealers and prosti tutes who don't hide like in better neighborhoods.......

The right wing think tank experts have NO idea what it is like to live in the inner city or in some poor rural area.
****They talk about the poor, most are the working poor, like they have any idea what the life is like.

From one who KNOWS (been there, done that) those "experts" do NOT know what they are talking about most of the time.
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Martha Fair
05:43 PM on 12/20/2011
"In 21 states, most in the South and West, a third or more of all working families are low-income."

Notice it says "WORKING poor." To hear it from the RepubliBillys these people are all lazy. Most of the working poor vote for RepubliBillys themselves and as such, vote for the very people who constantly humiliate and ridicule them.

Question for the working poor of the Republican party (in the SOUTH esp)..when are you going to quit supporting them and let them know you are NOT going to take it anymore?
12:31 PM on 12/21/2011
Ten years or so ago there was an Alabama governor who decided to save money by cutting safety net programs. He was proud of himself for coming up with such a great "two-fer." He'd save money and at the same time "stick it to" all those welfare recipients who, "everyone knows," are Democrats. He passed the bill and sat back and waited for the kudos.

Imagine his suprise when the backlash started and he realized that the majority of those welfare recipients where his FORMER GOP supporters!
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Opposition Research
Studying the enemies of civil liberty for 20 years
01:53 PM on 12/20/2011
As the haters line up to take pot shots at this piece...

To the modern GOP, work is the *LEAST* favored way to make money.

If the modern GOP had its way.....

Inheritances, even those approaching a billion dollars in liquid assets, would fall into the recipient's lap tax-free -- while the working stiff continues to pay Federal, State, and FICA taxes.

Capital gains would be realized tax-free, while the working stiff would continue to pay Federal, State, and FICA taxes out of his hard-earned paycheck.

Dividends would be realized tax-free, while the working stiff would continue to pay Federal, State, and FICA taxes on the sweat of his brow.

The moral of the story is: if the modern GOP had it's way....

Work for your money, pay taxes on it. Have it fall into your lap without lifting a finger, and you get it tax free.

(But never fear, we'll still tax your unemployment benefits. That privileged treatment of un-worked income was written to benefit the elite class.)
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Cory Jack
Turning Texas Blue: GO NEWT!
02:09 PM on 12/20/2011
This is what those who are against the Occupy Movement DON'T GET. OUR tax money LINED THE 1%'S POCKETS FOR YEARS.

Thank you for writing this.
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Opposition Research
Studying the enemies of civil liberty for 20 years
03:11 PM on 12/20/2011
Though Occupy is still trying to find the right words, it's evident that they have the sense that something is very ethically wrong.

The problem isn't so much capitalism per se -- it's the horrid, amoral system of assumptions that so many of us have been duped into incorporating into our current *practice* of capitalism.

The worker is evidently not a human being to whom a reciprocal moral responsibility exists, but is merely an asset, a "human resource," that exists solely to produce for the controlling/owning class, in exchange for as little as we'll take -- in an artificially depressed labor market.

The "corporations' *only* obligation is to themselves and their shareholders" is taught as Gospel in so many business schools. But it is a profoundly amoral concept that completely eliminates the "humanity factor" from economic metrics.

When combined with the fact that the working class is being told that *WE* have a "moral responsibility" to protect the interests of the controlling/owning class, it's a complete racket -- we shoulder *ALL* of the moral responsibility in our economy, and they shoulder none.
09:28 PM on 12/20/2011
How so....teh 1% pay the most taxes, the bottom 40% have negative federal income tax rates, meaning they are getting paid by the other 60% for the priviledge of being American. Actually it is the poor and low-income that are preying on the middle class and rich, not the other way around.
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Cory Jack
Turning Texas Blue: GO NEWT!
02:11 PM on 12/20/2011
to add to the comment I just wrote to you: if the payroll tax cut isn't done, guess where the money of 160 million Americans goes? STRAIGHT to the 1%, directly or indirectly, that's where my money will go.
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spinotter11
Spinning through life and trying to understand it.
08:54 PM on 12/20/2011
The payroll tax funds social security. Not every tax reduction is to our advantage.