Category Archives: Poverty

As Wisconsin’s and Minnesota’s lawmakers took divergent paths, so did their economies – Since 2010, Minnesota’s economy has performed far better for working families than Wisconsin’s

Source: David Cooper, Economic Policy Institute, May 8, 2018

From the summary:
Since the 2010 election of Governor Scott Walker in Wisconsin and Governor Mark Dayton in Minnesota, lawmakers in these two neighboring states have enacted vastly different policy agendas. Governor Walker and the Wisconsin state legislature have pursued a highly conservative agenda centered on cutting taxes, shrinking government, and weakening unions. In contrast, Minnesota under Governor Dayton has enacted a slate of progressive priorities: raising the minimum wage, strengthening safety net programs and labor standards, and boosting public investments in infrastructure and education, financed through higher taxes (largely on the wealthy).

Because of the proximity and many similarities of these two states, comparing economic performance in the Badger State (WI) versus the Gopher State (MN) provides a compelling case study for assessing which agenda leads to better outcomes for working people and their families. Now, seven years removed from when each governor took office, there is ample data to assess which state’s economy—and by extension, which set of policies—delivered more for the welfare of its residents. The results could not be more clear: by virtually every available measure, Minnesota’s recovery has outperformed Wisconsin’s.

The following report describes how Minnesota’s and Wisconsin’s economies have performed since 2010 on a host of key dimensions, and discusses the policy decisions that influenced or drove those outcomes.

Key findings include:
– Job growth since December 2010 has been markedly stronger in Minnesota than Wisconsin, with Minnesota experiencing 11.0 percent growth in total nonfarm employment, compared with only 7.9 percent growth in Wisconsin. Minnesota’s job growth was better than Wisconsin’s in the overall private sector (12.5 percent vs. 9.7 percent) and in higher-wage industries, such as construction (38.6 percent vs. 26.0 percent) and education and health care (17.3 percent vs. 11.0 percent).

– From 2010 to 2017, wages grew faster in Minnesota than in Wisconsin at every decile in the wage distribution. Low-wage workers experienced much stronger growth in Minnesota than Wisconsin, with inflation-adjusted wages at the 10th and 20th percentile rising by 8.6 percent and 9.7 percent, respectively, in Minnesota vs. 6.3 percent and 6.4 percent in Wisconsin.

– Gender wage gaps also shrank more in Minnesota than in Wisconsin. From 2010 to 2017, women’s median wage as a share of men’s median wage rose by 3.0 percentage points in Minnesota, and by 1.5 percentage points in Wisconsin.

– Median household income in Minnesota grew by 7.2 percent from 2010 to 2016. In Wisconsin, it grew by 5.1 percent over the same period. Median family income exhibited a similar pattern, growing 8.5 percent in Minnesota compared with 6.4 percent in Wisconsin.

– Minnesota made greater progress than Wisconsin in reducing overall poverty, child poverty, and poverty as measured under the Census Bureau’s Supplemental Poverty Measure. As of 2016, the overall poverty rate in Wisconsin as measured in the American Community Survey (11.8 percent) was still roughly as high as the poverty rate in Minnesota at its peak in the wake of the Great Recession (11.9 percent, in 2011).

– Minnesota residents were more likely to have health insurance than their counterparts in Wisconsin, with stronger insurance take-up of both public and private health insurance since 2010.

– From 2010 to 2017, Minnesota has had stronger overall economic growth (12.8 percent vs. 10.1 percent), stronger growth per worker (3.4 percent vs. 2.7 percent), and stronger population growth (5.1 percent vs. 1.9 percent) than Wisconsin. In fact, over the whole period—as well as in the most recent year—more people have been moving out of Wisconsin to other states than have been moving in from elsewhere in the U.S. The same is not true of Minnesota.

House Agriculture Committee’s Farm Bill Would Increase Food Insecurity and Hardship

Source: Ed Bolen, Lexin Cai, Stacy Dean, Brynne Keith-Jennings, Catlin Nchako, Dottie Rosenbaum, Elizabeth Wolkomir, May 10, 2018

From the summary:
The nutrition provisions of the farm bill[1] that the House Agriculture Committee (the Committee) passed on April 18, if enacted, would increase food insecurity and hardship. The proposed changes to the Supplemental Nutrition Assistance Program (SNAP, formerly known as food stamps) would end or cut benefits for a substantial number of low-income people.

SNAP is the country’s most effective anti-hunger program, helping 1 in 8 Americans afford a basic diet, with most SNAP participants being children, seniors, or people with disabilities. Despite providing modest benefits — averaging about $1.40 per person per meal — the program combats food insecurity, alleviates poverty, and has long-term positive impacts on health as well as on children’s educational attainment. The Committee’s proposal would reduce SNAP’s effectiveness and put large numbers of families and individuals at increased risk of hardship.

The Poverty Reduction of Social Security and Means-Tested Transfers

Source: Bruce D. Meyer, Derek Wu, National Bureau of Economic Research (NBER), NBER Working Paper No. 24567, May 2018
(subscription required)

From the abstract:
Many studies examine the anti-poverty effects of social insurance and means-tested transfers, relying solely on survey data with substantial errors. We improve on past work by linking administrative data from Social Security and five large means-tested transfers (SSI, SNAP, Public Assistance, the EITC, and housing assistance) to 2008-2013 Survey of Income and Program Participation data. Using the linked data, we find that Social Security cuts the poverty rate by a third – more than twice the combined effect of the five means-tested transfers. Among means-tested transfers, the EITC and SNAP are most effective. All programs except for the EITC sharply reduce deep poverty (below 50% of the poverty line), while the impact of the EITC is more pronounced at 150% of the poverty line. For the elderly, Social Security single-handedly slashes poverty by 75%, more than 20 times the combined effect of the means-tested transfers. While single parent families benefit more from the EITC, SNAP, and housing assistance, they are still relatively underserved by the safety net, with the six programs together reducing their poverty rate by only 38%. SSI, Public Assistance, and housing assistance have the highest share of benefits going to the pre-transfer poor, while the EITC has the lowest. Finally, the survey data alone provide fairly accurate estimates for the overall population at the poverty line, although they understate the effects of Social Security, SNAP, and Public Assistance. However, there are more striking differences at other income cutoffs and for specific family types. For example, the survey data yield 1) effects of SNAP and Public Assistance on near poverty that are two-thirds and one-half what the administrative data generate and 2) poverty reduction effects of SSI, Social Security, and Public Assistance that are 34-44% of what the administrative data produce for single parent families.

Related:
New evidence shows that our anti-poverty programs, especially Social Security, work well
Source: Michael Hiltzik, Los Angeles Times, May 7, 2018

Few U.S. government efforts are consistently more vilified than anti-poverty programs. They’re dismissed as ineffective and ridiculed as giveaways to undeserving recipients. A new paper puts the lie to these assertions by showing that the nation’s most important anti-poverty efforts all succeed in serving their goals — in the case of Social Security, spectacularly. The authors, Bruce D. Meyer and Derek Wu of the University of Chicago, used administrative statistics from six major programs to demonstrate that five of the six “sharply reduce deep poverty” (that is, income below 50% of the federal poverty line) and the sixth has a “pronounced” impact among the working poor…..

States waste hundreds of thousands on drug testing for welfare, but have little to show for it

Source: Amanda Michelle Gomez, Josh Israel, ThinkProgress, May 7, 2018

We got the questionnaires used to screen people for tests, and they are deeply flawed. …. In 2017, states spent more than $490,000 to drug-test 2,541 people who had applied for Temporary Assistance for Needy Families (TANF) benefits, which yielded just 301 positive tests. ….

Cities Hit Hardest by Extreme Poverty

Source: Samuel Stebbins, 24/7 Wall St., April 17, 2018

From the summary:
….Using data from the U.S. Census Bureau, 24/7 Wall St. compared the percentage point change in concentrated poverty rates in U.S. metro areas between 2010 and 2016 to identify the cities where concentrated poverty is increasing most. The cities on this list span the United States geographically, from the West Coast to the East and from the South to the Midwest…..

Amazon Gets Tax Breaks While its Employees Rely on Food Stamps, New Data Shows

Source: Claire Brown, The Intercept, April 19, 2018

Later this year, Amazon will begin accepting grocery orders from customers using the Supplemental Nutrition Assistance Program, the federal anti-poverty program formerly known as food stamps. As the nation’s largest e-commerce grocer, Amazon stands to profit more than any other retailer when the $70 billion program goes online after an initial eight-state pilot. But this new revenue will effectively function as a double subsidy for the company: In Arizona, new data suggests that one in three of the company’s own employees depend on SNAP to put food on the table. In Pennsylvania and Ohio, the figure appears to be around one in 10. Overall, of five states that responded to a public records request for a list of their top employers of SNAP recipients, Amazon cracked the top 20 in four.

Confronting Poverty: Tools for Understanding Economic Hardship and Risk

Source: Mark Rank and Tom Hirschl, Washington University in St. Louis and Cornell University, 2018

Poverty Risk Calculator
Have you ever wondered what your risk of poverty might be in the future? Estimate your personal risk and compare it to other Americans.

Discussion Guide
Learn more about poverty and inequality with our discussion guide. Different modules are designed to further your understanding and stimulate discussion.

Research
Explore a collection of books, articles, and papers dealing with important aspects of poverty and inequality in America.

Related:
Enter your info to calculate poverty risk
Source: Neil Schoenherr, Futurity, April 20, 2018

The Promised Land Is Still Not Here

Source: Robert Greene II, Jacobin, April 4, 2018

Fifty years after Martin Luther King’s assassination, the Left struggles to speak with the kind of moral clarity King exemplified — but that shouldn’t stop us from trying.

Related:
Dr. King Knew That Labor Rights Are Human Rights
Source: John Nichols, The Nation, April 3, 2018

The civil-rights leader was proud to rally with public workers and to connect their struggle with the struggle for a fair and equitable economy.

Martin Luther King and the battles that outlived him
Source: David A Love, Al Jazeera, April 4, 2018
50 years on, the three evils MLK talked about -racism, militarism and economic exploitation – still plagues the US.

50 Years On, King’s Fight Against Racism and Poverty Remains Our Fight
Source: Brittany Alston, DC Fiscal Policy Institute, April 3, 2018

On April 4th, 1968, 50 years ago tomorrow, Martin Luther King Jr. was assassinated amidst the struggle for workers’ rights in Memphis, Tennessee. After longstanding tensions mounted between Black sanitation workers and the City of Memphis, workers refused to report to work. The men used nonviolent tactics in protest of low wages and dangerous working conditions. They etched their cause in the minds of millions with signs that read “I Am A Man”. Organizers called on clergy, including Martin Luther King Jr., to amplify the voices of the workers. King told workers that they were “reminding, not only Memphis, but [they were] reminding the nation that it is a crime for people to live in this rich nation and receive starvation wages.”…

50 years since his death, Martin Luther King Jr.’s philosophical work is all but forgotten
Source: Olivia Goldhill, Quartz, April 4, 2018

In the 50 years since the death of Martin Luther King, Jr., the memory of the transformative civil rights leader has undergone a “Disneyfication.” Textbooks, movies, and TV shows often suggest that King’s quest for racial and economic equality was ultimately successful. Yet half a century since his assassination, King would be dismayed by the ongoing inequality and racism in the US. And the complexities of his ideas are often overlooked.

King was not simply a compelling speaker, but a deeply philosophical intellectual. The syllabus from his social and political philosophy course while he was a visiting professor at Morehouse College includes works by Plato, Aristotle, Augustine, Aquinas, Machiavelli, Hobbes, Locke, Rousseau, Kant, Hegel, Bentham, and Mill. King’s own writing engages with Nietzsche and Marx extensively; Hegel was one of his favorite thinkers…..

Commemorations in Memphis Show That How We Remember Martin Luther King Jr. Is Changing
Source: Simon Balto, Time, April 4, 2018

….On the day he was killed, King was writing a Sunday sermon entitled “Why America May Go to Hell.” “America is going to hell,” he wrote, “if we don’t use her vast resources to end poverty and make it possible for all of God’s children to have the basic necessities of life.” As historian Vincent Harding (King’s friend and sometime speechwriter) put it, King died in Memphis “in the consciously chosen company of the poor.” That is also how he spent much of his final years.

This is the King — capacious in his critiques, radical in his politics, and who suggested that America was quite possibly hell-bound over its militarism, materialism and failures to care for “the least of these” — that animates many of the most significant commemorations unfolding in Memphis this week surrounding the anniversary of his death…..