Recent trends in poverty rates should have the country furious at its leaders. When we get the data for 2011 next month, we are likely to see yet another uptick in poverty rates, reversing almost 50 years of economic progress. The percentage of people in extreme poverty, with incomes less than half of the poverty level, is likely to again hit an all-time high since the data has been collected.
The situation is made even worse by the fact that so many of those in poverty are children. In 2010, 27 percent of all children in the country were reported as living below the poverty level. For African-American children, the share in poverty is approaching 40 percent.
Many will blame the welfare reform law in 1996 that passed with bipartisan support. That is appropriate. This bill involved a great deal of political grandstanding and removed guarantees that could have protected millions of families in a severe downturn like what we are now seeing.
Advocates of this bill who now profess surprise at the result need to turn to a new line of work. There were plenty of people at the time who warned that the lack of federal guarantees could lead to severe hardship in an economic downturn. No one has a right to be surprised on this one. The surge in the poverty rate in a downturn like the present one was a predictable and predicted outcome of the legislation.
However, there is the other side of the story, the overall state of the economy, which is the more important cause of the increase in the poverty rate. The vast majority of the people in this country rely on work for the bulk of their income and that would also be true for the tens of millions of people in poverty, if work was available. These people cannot find jobs in today's economy, or at least not full-time jobs that pay anything close to a living wage.
The reason why so many of these people cannot find jobs is the incredible economic mismanagement by people with names like Robert Rubin, Alan Greenspan, and Ben Bernanke. These people thought that the bubbles that drove the economy in the last two decades, the stock bubble in the '90s and the housing bubble in the last decade, were really cool. They somehow thought that either the bubbles would not burst or that it would be easy to pick up the pieces after a crash. In Robert Rubin's case, he personally profited to the tune of more than $100 million from the housing bubble after he left his post as Treasury Secretary to take a top position at Citigroup.
As much as it is important to have strong safety net protections to ensure that people are able to survive tough times, it is even more important to have a strong economy that can generate good paying jobs. Unfortunately, there is nothing on the political agenda at the moment likely to bring the economy back towards full employment any time soon.
Both presidential candidates claim to be committed to deficit reduction as though there is magical process that causes private businesses to start hiring workers when they see that schools are laying off teachers and defense contractors are laying off factory workers. Just as few politicians had the courage in 1996 to stand up and say that the welfare reform bill would jeopardize the security of millions of families, few politicians are prepared to stand up now and say that we actually need more government investment to create jobs and rebuild the economy.
The reality is that the collapse of the housing bubble created an enormous demand gap in the economy. In the short term, this gap can only be filled by the government, whether we like it or not. Until we do get the economy back on its feet, and start creating the millions of jobs that are needed, the poverty numbers will continue to be horrible. That is why the main route for fixing poverty requires fixing the economy.
This post is part of the HuffPost Shadow Conventions 2012, a series spotlighting three issues that are not being discussed at the national GOP and Democratic conventions: The Drug War, Poverty in America, and Money in Politics.
HuffPost Live will be taking a comprehensive look at the persistence of poverty in America August 29th and September 5th from 12-4 pm ET and 6-10 pm ET. Click here to check it out -- and join the conversation.
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let the new generation run pollitic
put a age limit like 50yrs and younger
politican now are out of touch
politican don't care they won't be around
I know people who have been laid off for a number of years (tech) that went from very good middle class to jobs (for those who could get them) paid little over minimum wage. I also have been there for 4 years but have returned to tech. The real issue is that many jobs no longer exist in this country, whole industries have left this country. Companies also fear hiring laid off middle class workers because they thing they will get a better paying job. If you are over 40 in tech your chances drop to almost nill.
So I hope you get the chance to be laid off so you may have the experience and not be so arrogant and presume you know anything about other people's circumstances.
GWB had everyone voting for his wars and now it’s Obama with his wars and more bills/debt.
Although right now they are running around the country yapping about the defense cuts next years and the millions of job losses. You see now all of a sudden government does create jobs. Go figure.
Revenues have to be generated by growth in business activity. Only then can enough taxes be raised to pay for government programs and social services.
Published on Thursday, August 30, 2012 by Common Dreams
Money in Politics: Where Is the Outrage?
by Bill Moyers and Bernard Weisberger
We now have a service economy and it is getting worse. Are any of these people going to fill customer service phone rep positions or engineer/design positions etc? What do you think it going to appear and employ them?
We either get factories back here or just get used to these stats.
Until you re-enact pre Reagan tariffis.
Institute the same barriers to free trade as our trading partners use quid pro quo.
Re-institute Glass-Steagall
Penalize companies or States that give the farm to Corporations willing to relocate in them.
Nothing will happen.
Do this and things like it, Factories will build themselves.
So, the US consumer has to purchase TV's made in the US? Shoes, furniture, clothing, etc made in the US only?
That's not fair. As a citizen, we have rights to engage in legal trade with other nations. I should be able to purchase a Playstation without govt regulation coming in, and telling me I have to purchase a XBOX.
And, what about the supply chain? Are you suggesting tariffs for raw material and semi-finished goods?
Consumers have rights as well. You are 'free' to open up a mom/pop store, and peddle your wares. Do it well, and you may become well off. But, do not force me as a consumer to shop there. I want choice. I want multi-nationals to compete for my dollar.
Workers, citizens and tax payers are rubes to be exploited.
If it isn't a tax authority, it's the mob, or a lord of the manor or a King. One way or another, some as*hat will always try to steal some off the top from those who work hard and produce.
Since Congress passed the law in 2004 that continues to give US companies generous tax breaks every time they shut down operations here and move overseas, taking American jobs with them, over 50,000 factories have closed down. 50,000!
Let's assume 100 workers per factory. That's 5 MILLION JOBS. Apply the multiplier effect, and we're talking many more jobs than that. This wasn't ordinary Americans deciding to buy foreign products because they were cheaper. This was and continues to be A CONCERTED EFFORT by our elected leaders to ship and keep American jobs overseas.
With a BS in Finance and a BA in economics, I found out quickly that I was qualified to be trained. The degree was used as a qualifier for applying for a job, but no employer actually thinks a new graduate can do the work right out the door.