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Leo Hindery, Jr.

Leo Hindery, Jr.

Posted: February 23, 2010 10:28 AM

Every Tuesday the Huffington Post lets me post a featured piece. Mostly I write about jobs, especially the issue of 'real unemployment', and trade, where I worry over the extremely adverse effects which unfair globalization is having on American workers.

Two old friends, civil rights activist David Mixner and former U.S. Senator (and my oft co-author) Don Riegle (D-MI), believe that in the economic recovery, not enough attention is being given to 'who's really poor' now. David and Don have for years advised me -- and others -- on the issue of poverty in America, and they are worried that too many people, and especially too many people in the administration and Congress, are missing this imperative.

To help make their point, they referred me to poverty activist Marsha Timpson, who describes today's poor as "America's dirty little secret, hidden in the backyards of America's shining homes, the hollows, the reservations, the border towns and the dark ghettos of the city where they are the lie of the American dream."

I agree with my friends, and with Ms. Timpson's view, and everyone else should as well, for right now in America:

  • At least 50 million people are ill-fed -- up from 37 million just a year ago -- including 17 million children. Hunger in America is now at an all-time high, and there are currently entire national geographic regions -- the very large 15-state 'South' being one of them -- where more than half of all public school students are poor and ill-fed.

Although I myself grew up in a fairly hardscrabble environment, as the father of a daughter who was in fact able to create a successful life from the opportunities her mother and I could give her, it is hard for me to imagine what it must be like to have your child needy and hungry. Yet all of us need to 'imagine' this, because each night in America millions of children do in fact go to bed hungry and under-nourished, while also lacking proper housing, needed clothing, and the basic education required to develop and ultimately find gainful employment. And while I wholeheartedly support the First Lady's new "Let's Move" effort to improve the nutrition of America's children, we must first react to basic hunger rather than to food quality.

  • 30% of the nation's 50 million homeowners own a home whose value is below its mortgage balance, and this number could rise to an almost unbelievable 50% by year-end 2011. It would cost about $745 billion, more than the size of the original 2008 bank bailout, to restore these borrowers to the point where they were breaking even, which there is no obvious political will to find right now.
  • Despite the truly dismal 'real unemployment' figures with which most everyone now agrees -- a staggering 30 million workers and 19% of the labor force -- very little attention is being paid to the particularly adverse effects the recession is having on people of color, recent immigrants, and out-of school youth. And almost no one is acknowledging the sad reality that even the nation's 130 million full-time workers have had an average economic loss of 15% just since December 2007 -- an average effective work week of 34 hours rather than 40 -- which means that the number of unemployed workers, measured economically, is actually as high as 50 million.

The overwhelming problem today for most workers isn't this recession, as horrible as it is -- it's the fact that for every earned income level except the top 10%, average household income hasn't changed a bit for 10 years, and that for the bottom 60% of wage earners it hasn't changed for more than 20 years. Through economic expansions and recessions -- and bull and bear markets -- alike, 90% of workers in America have been standing still earnings-wise.

  • And 100 million people, fully one-third of the entire U.S. population, are at or below "200% of the federal poverty line of $21,834 for a family of four", which is a needs-measure made lame by the fact that no family of four can actually comfortably live on such a low annual income.

**********

The best response to this scourge would be for our government to embrace in today's troubled time the same "economic bill of rights" that FDR, in his last State of the Union Speech in January 1944, demanded for his.

Roosevelt's "bill" sought to guarantee, in addition to health care and education, rights to:

  • "a job with a living wage...that would earn enough to provide adequate food and clothing and recreation;
  • "protection from the economic fears of old age, sickness, accident and unemployment; and
  • "a decent home".

And with his typical sensitivity, FDR concluded his last SOTUS, when he knew that he was dying, by saying that, "We cannot be content, no matter how high the general standard of living may be, if some fraction of our people -- whether it be one-third or one-fifth or one-tenth -- is ill-fed, ill-clothed, ill-housed and insecure."

Until we in this time include the eradication of poverty as part of our economic recovery efforts, as FDR tried to do in his time, no matter how much we attempt to rebuild the nation's economy through better trade practices, enhanced workers' rights, and investments in infrastructure and the 'green economy', tens of millions of Americans, literally, will still be left impoverished.

In making this effort, and thus in trying to determine "who's really poor in America" so that we can assist them, it helps to think of America as a doughnut, with the 'hole' in the doughnut being, at any point in time, the middle class (and the elites) and with the dough-part being those Americans who aspire to get there.

When our ancestors got off their boats at Ellis Island or on the West Coast, the American doughnut was a fat one with a relatively tiny hole, because almost all of them were impoverished 'outsiders' looking to find their individual American Dream. The doughnut's hole grew relatively larger over the next 50 to 100 years as the economy grew, and then with the widespread prosperity that came with the end of the Second World War, it ballooned in size as the middle class ballooned.

In the two decades after the War, with a burgeoning middle class clearly in hand, our government, in order to help those Americans still living on the outer ring, established very powerful employment & training, education, home mortgage, and small business assistance programs, while freely allowing labor unions to advance and protect workers' rights.

The problem with how we have reacted so far to the Great Recession of 2007 is that most of the recovery programs are, as in the '50s and '60s, only for those Americans living in the outer ring: programs such as "cash for clunkers", first-time homebuyer credits, expanded Pell Grants, etc. In 2010, however, after decades of wide-spread wage stagnation, the entire middle class needs help as well, and the simple proof of this is that overall income inequality in America is now the greatest since 1928, when we first began to measure it.

Without an immediate all-of-government commitment to creating upwards of 30 million new jobs (not the 9 million that the administration has identified), without stimulus efforts that specifically target the entire struggling middle class, and without very specific initiatives aimed at breaking the back of general wage stagnation, there is not even a medium-term prospect of anything approaching real full employment and healthy economic growth that benefits all Americans.

So, the answer to the question of 'who's really poor' now is that we all are in one way or another, because, as FDR would have said if he was here, "some [way too large] fraction of our people is."

Addressing this reality -- this now virtual pandemic of poverty -- must be at the core of our current economic recovery efforts, because a vibrant middle class that grows from the bottom up will always be central to the continued health of America's democratic society.

Leo Hindery, Jr. chairs the US Economy/Smart Globalization Initiative at the New America Foundation and is a member of the Council on Foreign Relations. He is the former chief executive of AT&T Broadband and other major media and telecom companies.

 

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stevendedalus3
12:55 PM on 02/27/2010
That fraction will endure because most of us are conditioned--as we are of the homeless--to look away and rationalize through the Darwinisn prism in that it is but a matter of inferior DNA.
02:59 PM on 02/26/2010
Yes, "non glamorous" points missing in our corporate msm environment, well said. However, IMO one must talk about the massive revenue cuts (taxes) that have occurred starting significantly under the Reagan Admin continuing through "W". The Govt back then had many more resources at it's disposal not to mention a populace frame of mind. Now a days the depleted isn't properly financed to address these type of problems. Until wealth is distributed as such an we (the people) get control of corporate control meaningful change is not possible.
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06:01 PM on 02/24/2010
"...the debate is rarely whether one should or should not assist the weakest among us, it is how." ~ seawillow

Not according to Lt. Gov. Andre Bauer of SC. To him, the weakest among us are "stray animals", undeserving to be fed. I have no doubt there are MANY like him who believe the same thing, but are silent.

These powerful, privileged citizens (who have NO realistic concept of or appreciation for the harsh economic life for the rest of us - we are just statistics), DO actively debate the necessity and obligation of providing assistance for our least fortunate members - the very poor they themselves have helped create.

Glorious "free trade", deregulation, tax incentives/breaks, corporate subsidies (WELFARE), bailouts, etc. are bastions of inequality and built-in inequity.

This is why we're seeing the wholesale destruction of the middle class...and the ever-increasing wealth of the rich. In their world, less for YOU means MORE for them. Nothing personal (you are just "human capital", after all).

The rich create the poverty problem, then walk away, screaming and complaining it's not their problem. The hell it's not. Their patriotic, red-white-and-blue defense: I've got mine (no matter how I got it)...you go get yours (if you can...and I'll make sure you can't, because I don't want competition).

Their Golden Rule: privatize the profits, socialize the losses. And whatever you do, don't feed the stray animals. *

* Especially the ones you yourself turned out.
06:27 PM on 02/24/2010
It is clearly not possible to know the motives of any person, and it is certainly not possible to know the motives of the millions you insult and scorn. This is bigotry.

Possibly you believe that such prejudice is excused if you display it only towards specific, approved groups. I am not sure free passes exist in this area though.
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09:47 PM on 02/24/2010
Yes, it is possible to know someone's motives - if they tell you or by their actions.

Who am I insulting and scorning? What prejudice?

Your post is rather vague and confusing. Would you please clarify your meaning?
12:34 PM on 02/25/2010
"...the debate is rarely whether one should or should not assist the weakest among us, it is how." ~ seawillow

"Not according to Lt. Gov. Andre Bauer of SC. To him, the weakest among us are "stray animals", undeserving to be fed. I have no doubt there are MANY like him who believe the same thing, but are silent. "

She states "many", not the entirety.

It is the morality of those like Lt. Gov. Bauer that she is questioning, not their wealth.

Morality is not restricted to a group.
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mjc
Avoid printing any..
03:59 PM on 02/24/2010
Among those who would consider themselves poor, and many, like myself, raised with middle class values by middle class parents, resist that label, living from paycheck to paycheck, no savings, sometimes just getting by with a high carb diet , being poor is no secret. Took a lot of political science and sociology courses and studied the middle class make-up of our society, clarified the definitions and decided that mainly there is a cultural component of the label. But in those days, 40 or 50 years ago, the gap wasn't so wide between the poor and the middle class and goal of attainment of an upper class designation was pretty obvious. Today, we are so tightly confined to our societal status that attainment is pretty difficult, if not impossible. As a teacher for many years the sight of those children who are pretty scared to be in school at all is very uncomfortable. These children don't speak the language of many of their peers and they certainly don't dress like them either. Unless they are athletes, or gifted in some way, there is little hope of becoming what our tvs tell us we MUST be.
Linda from Deerfield
Paying attention
05:17 PM on 02/24/2010
You are/were a teacher? I have the distinct impression that we as a society refuse to reward the teaching profession, preferring to hound them and pretend we know more about teaching than they do, yet my property taxes keep going up 10%-15% each year, and it's mostly the school district. There's no population explosion, so I can't figure out where the money is going.

My husband was exposed to some of those worrisome children through a hobby thing, and they broke his heart in a way. The school's idea was to expose them to old guys who would just treat them like regular people, but the self-defeating attitudes in otherwise bright-seeming kids were painfully obvious.

I keep thinking that the answer lies in restoring dignity that's been stolen from so many, which may be what you are saying, but I don't know how to make it happen.
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mjc
Avoid printing any..
07:19 PM on 02/24/2010
Think some teachers, those who have been in the mill for a long time, tend to look, but not see those kids. It's easier for them. While we are about restoring dignity, we should do a larger group than those kids; teachers need those attitudes.
03:59 PM on 02/24/2010
Dear Mr. Hindery:

I was struck by your saying: ". . . .Yet all of us need to "imagine" this . . . ." I suggest that it is not a matter of imagining, it is a matter of doing, doing without dinner tonight. Go ahead, live on one meal a day for awhile and then (as you are able publish your opinions and experiences) tell Huffington Post readers what it was like. Start a trend. The food you save (or money) can be donated to your local food bank. In our (impoverished) community in rural Nevada, home gardens are erupting out the volcanic soil of our valley. Neighbors are quick to ask a gardener for any extra crop they might have as we encounter the hungry in the next block or when a young one brings home a ravenous friend from school. For the last decade I've devoted time to a fasting regime. I'm always the better for it. For me one of the dirty little secrets we need to confront is that many of us have a great deal too much to eat and if we shared this bounty at least hunger could be dealt with. The rest of the disease you describe? I don't know where to begin - but I can feed a neighbor.
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05:10 PM on 02/24/2010
Good points.

As a side issue, and from the perspective of an organic gardener, I was drawn to your mention of the volcanic soil in your area. Combined with the Nevada sunshine, that must make for some very productive gardens.

I'm in the midst of a cold, overcast, snowy winter. But spring is not that far away, and then the magic of seed, soil, water, and sun will bring on the gardens of promise.
09:31 PM on 02/24/2010
We, too, are having a grim winter. Happily, the snow has insulated all of our root crops and we still have a fifty foot row of Nantes carrots, parsnips and beets in abundance. Also, we were astonished to discover that an entire row of "American" spinach survived under cover. The Jerusalem artichokes just keep getting better the longer they stay in the ground. This has become a vital crop - three of my neighbors with type 2 diabetes are able to eat the 'chokes like they would potatoes without hardly any ill effect. The soil here is truly amazing. Asparagus thrives so that it becomes a pest. The trick used to be keeping the weeds out of he asparagus bed - we weed by hand - but now the trick is to keep the asparagus out of the rest of the garden. Some problem, eh? All we have to do is put down cold weather cover crop or barley between seasons and the mineralized soil is so rich our production never fails. Also - we have access to organic grape pomice collected by one of my husband's customers. He makes a compost with the pomice and its effect in the alkaline soil is profound. We plan to garden with three other neighbors this coming summer. We are confident that we can feed 10 families. Plus we have the orchard my parents started .
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missouriwatcher
military veteran, veteran teacher, father, grandpa
03:45 PM on 02/24/2010
I agree--we need lots of GOOD jobs in the USA: jobs that pay good, liveable wages; jobs with good medical and dental benefits; jobs with promotion potential and good retirement benefits. Unfortunately, in the 1980s USAID PAID U.S. manufacturing to shut their doors and move overseas. We now have a largely service-based economy and very little in the way of REAL and PRODUCTIVE jobs in the USA. Welcome to another unappetizing aspect of the fast-food nation.
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Norman Allen
It is forbidden to kill unless in large numbers an
02:50 PM on 02/24/2010
Who is the real poor in the US? I would say anyone dependent on wages for livelihood without adequate savings to last them at least one year. I read somewhere that over 80% of our wage earners (white and blue collar) are three months away from being on the streets if no paycheck is earned. Industrial revolution has made it easy for owners to buy and sell millions of people with factories, just like the peasants who were bought and sold with the land about 300 years ago. For a working democracy, we need profit sharing and giving workers a stake in the production-distribution. Go tell that to Tea Party goers and the likes of Glen Beck and Oh, boy Reilly.
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02:43 PM on 02/24/2010
Here's a dirty little secret for you
"We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."
Conservatives don't think promote the general welfare is the job of government, when it's right there for the world to see in the preamble to the Constitution. It's one of the reasons we exist as a nation. For you who only think in the bottom line, it's our mission statement. Yet it seems, through the actions of government, it isn't the general welfare we promote, it's the welfare of the Financial Aristocracy.
04:14 PM on 02/24/2010
Excellent point, but not news. What we all debate constantly is what promoting the "general welfare" means. You and I may agree on this, or not, but the debate is rarely whether one should or should not assist the weakest among us, it is how.
05:10 PM on 02/24/2010
Here's a dirty little secret for you: It's going to get alot worse.

due to failure to act
05:21 PM on 02/24/2010
Yes
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05:34 PM on 02/24/2010
Yes and no. It will get worse because the government won't act as they should, true. But it is in the state it's in at least partly because the government has acted in the wrong direction for years. They deregulated where they shouldn't and enacted policies that encouraged the exodus of American jobs and the destruction of the middle class.
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Kye154
02:02 PM on 02/24/2010
Something else not mentioned. All the touted tax credits and tax breaks in the world do absolutely no good if you have no income because you have no job. Tax credits and tax breaks are only good for those who have a taxable income, and tax breaks are really great for those with obscene incomes. In fact most corporates, banks, and the elitests of our society do not pay any taxes at all.

However, companies, like AT&T, have recently been charged with illegally collecting "taxes" from its costomers on wireless data, any yet they continue to pay no taxes to the government. Insurance companies have been doing the same thing for years on their policy holders. Same said for Oil companies too, when they crank in that 9/10 cent sales tax everytime you buy a gallon of gas. They do not turn these taxes over to the government. You pay, but they keep the tax money. No wonder why our government is broke. This is outright fraud and it's predatory on individual Americans. There is something desperately wrong with your country when businesses can do this, and the IRS does little to stop this.
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Ed Howes
Social Observer, Critic, Educator, Counselor
12:53 PM on 02/24/2010
When banks run nations, poverty is the only approved lifestyle and every year more people learn to enjoy the challenges and benefits until the banks no longer run their private plantations. This is a learning experience for survivors.
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12:51 PM on 02/24/2010
Would thorough;ly agree with you that we need more and better jobs. But your choice of staistics is poor.

"And 100 million people, fully one-third of the entire U.S. population, are at or below "200% of the federal poverty line of $21,834 for a family of four", which is a needs-measure made lame by the fact that no family of four can actually comfortably live on such a low annual income."

They would qualify for Food Stamps, probably about $500 a month, thats $6000 a year.

Provided the above was "Earned Income" they would get a check back when they filed their tax return of over $7500. And if they live in expensive areas of the country, there are many other programs that will help with rent and bills.

None of that assistance being provided, at taxpayers expense, changes the fact that they EARNED $21K, and are therfore counted below the poverty level despite the thousands of dollars that have been provided for them.

I could at least have some faith in the numbers if taxpayers were receiving credit for what is already being provided to mitigate their position. But its hard for me to get fired up when I have no faith in the numbers your throwing out.
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Dartwin
04:31 PM on 02/24/2010
Irrationality is what charaterises faith, in particular when it tries to hide behind some shallow logic. You use "earned income" as a hypothesis ("provided", "if" etc) in one paragraph, yet you use it as a fact in the next ("they EARNED" etc). If you don't realise it, then question your reasoning capacity. Otherwise, and the formatting suggests it strongly, it is cheap retorics a la Glenn Beck. However, it is not the main point here. Do you really think that people with 21k a year and a family of four are of the kind who would coolly "file a tax return" at the end of the year?
12:50 PM on 02/24/2010
Every saturday for the last 10 years I have spent 2 to 4 hours driving up and down alleys picking up aluminum cans and scrape metal which I take to the recycle center. The money earned I donate to the Humane Society of Broward county. Last years collection came close to $2800.

I fully expected I would have to back off this practice to allow people who are on hard times to capitalize on this practice. So far I have picked up this year the same amount of cans and metals I did three years ago.
12:34 PM on 02/24/2010
How about we just give people money, cut out all the agencies and crap? Why is government pay the only one that is increasing? That is what is shameful. Cut out the fat and just make a strict transfer of payments without the middle man. It's called a negative tax and would make an actual difference.

http://www.robert-h-frank.com/PDFs/ES.11.23.06.pdf
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MPatrick Dahlke
environmental essayist
12:29 PM on 02/24/2010
Job creation is local.

It always has been and it always will be. The problem is that job creation remains in the minds of our national leaders, a global issue. As if we were all born on jetliners bound for foreign lands, the notion of dealing with local job creation does not quite sink in. As it does not, the regulatory controls needed to assure local job creation are lost in the baggage terminals of cities like Dubia as opposed to cities like Dubuque.

The regulatory controls I am speaking of are national building codes. These are the codes that once universally applied across America, will facilitate a boon in the American housing industry never before seen. As that boon is all about integrating hundreds of advanced technologies into the process of building healthy American homes, until Washington gets off its' jet plane, Americans will remain unskilled and low waged baggage handlers.

Why our leaders cannot figure out the remarkable potential of investing in American architecture is beyond me entirely.
Linda from Deerfield
Paying attention
01:07 PM on 02/24/2010
I often thought the same thing, during the home building boom. I'm afraid that it's going to be a long time before many people will be buying a brand new house. It would be a great forward thinking step, though.
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MPatrick Dahlke
environmental essayist
02:28 PM on 02/24/2010
Thank you, thank you, thank you.

I love you dearly sunshine and DON"T take this the wrong way.

There are so many exciting things taking place in our nation today it is ridiculous.

All we have to do is build cool houses and refreshing communities. The moment we do so, everything is going to be just fine.

As there is just so much angst we collectively hold over our unenlightened American architectural heads, because we do this to ourselves, nobody can just sit down and say to a total stranger "You have a beautiful mind, I would like to invest in it and in doing so find safety in our collective trust that we are Americans".
Linda from Deerfield
Paying attention
11:48 AM on 02/24/2010
Here's something that I've been wanting an excuse to say -- every time Republicans make the threat to cut Social Security, a few more people who might have taken the risk to start a business decide that they had better just keep their heads down and save for retirement instead.
12:21 PM on 02/24/2010
So you needed an excuse to say something dumb?
12:33 PM on 02/24/2010
You can cure ignorance but not stupidity

You represent that remark
Linda from Deerfield
Paying attention
12:42 PM on 02/24/2010
That figure you used to hear that you'll earn 11% in the stock market -- that's bunk. Analysts have quietly reduced the number or don't want to mention it any more. Bush era investment in the S&P 500 would have got you 0%. You're for eliminating SS, right? But you're investing all of your retirement savings in starting a business, right?