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Aug 26 2009
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By Stephen Lendman   
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Growing Poverty and Despair in America
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In 1962, Michael Harrington's "The Other America" exposed the nation's dark underside enough for John Kennedy to ask his Council of Economic Advisor chairman, Walter Heller, to look into the problem and for Lyndon Johnson to say (on January 8, 1964) that his administration "today, here and now, declares unconditional war on poverty in America." 

In fact, it was little more than a skirmish that fell way short of addressing the real problem in the world's richest nation. Today it's even greater and increasing exponentially under a president who, unlike Johnson, declared war on the poor and disadvantaged to favor privilege over growing needs and essential social change.

In his book, Harrington wrote:

"In morality and in justice every citizen should be committed to abolishing the other America, for it is intolerable that the richest nation in human history should allow such needless suffering. But more than that, if we solve the problem of the other America we will have learned how to solve the problems of all of America."

Sadly, we didn't then nor have we now.

Perhaps more than anything, increasing homelessness and hunger highlight the growing problem as, in the face of deteriorating economic conditions and growing human needs, administration policies are indifferent, counterproductive, uncaring and hostile.

In December 2008, Reuters reported that "Homelessness and demand for emergency food are rising in the United States as the economy founders," according to a December 2008 US Conference of Mayor's Task Force on Hunger and Homelessness survey of 25 American cities. Chief causes cited were growing poverty, unemployment, and unaffordable housing costs with greater than ever expected challenges in 2009. At the time, it was reported that "Cities continue to develop aggressive strategies to prevent homelessness" and provide other essential services, but that was then and this is now.

An Epidemic of State Budget Shortfalls 

As economic conditions deteriorate, the Center on Budget and Policy Priorities (CBPP)'s July 29 report highlighted the growing problem. Titled "New Fiscal Year Brings No Relief from Unprecedented State Budget Problems," it cited the following issues:

-- at least 48 states "addressed or still face shortfalls in (their FY 2010) budgets," the result of "the worst decline in tax receipts in decades;"
-- at issue is a $163 billion deficit or 24% of their budgets, and these numbers keep rising as conditions worsen;
-- at least 33 states "already anticipate" 2011 deficits that may exceed 2010 ones; and
-- for FYs 2010 and 2011, shortfalls of at least $350 billion are expected, and FY 2012 may bring little or no relief.

In response, deep social service cuts are being implemented, putting the burden on vulnerable Americans to cope and survive. The situation is grave and worsening with at least 21 states cutting "low-income children's or families' eligibility for health insurance or reduce their access to health care services."

Elderly and disabled persons programs are also being reduced or eliminated. So are services for home and child care, rehabilitation, and other essential needs for the poor and low-income households. The most vulnerable of all are affected, yet more cuts are expected as new budget pressures arise.

Pre-school, K-12, and higher education cuts are being made as well. Public payrolls and hours worked are being slashed, exacerbating the growing unemployment problem, worse still by cutting pay for the still-employed. Tax increases may also be considered at the worst possible time.

"Expenditure cuts and tax increases are problematic policies during an economic downturn because they reduce overall demand and can make the downturn deeper. When states cut spending, they lay off employees, cancel contracts with vendors, eliminate or lower payments to businesses and nonprofit organizations that provide direct services, and cut benefit payments to individuals."

Demand is then reduced because households have less to spend. As a result, the economic crisis deepens. CBPP said federal assistance is crucial, yet the Obama administration declined while providing trillions to Wall Street and other corporate favorites. That's the state of governance in America today under Republican and Democrat administrations, each no different from the other.

Hunger in America

On its web site, Feeding America (formerly America's Second Harvest) said in "the land of plenty," one in eight Americans (meaning millions) face growing hunger problems, and not just the poor and unemployed. They're "often hard-working adults, children and seniors who simply cannot make ends meet" and have to forego meals at times, even for days.

Hunger and Poverty Facts

-- in (pre-crisis) 2007, 37.5 million people were impoverished; they comprised:
-- 12.5% of the population and 9.8% of families;
-- 20.3 million or 10.9% of people aged 18 - 64;
-- 13.3 million or 18% of children under age 18; and 
-- 3.7 million or 9.7% of seniors aged 65 or older who benefit from Social Security and Medicare.

In addition:
-- 36.2 million Americans are food insecure, including 12.4 million children; 
-- they comprise 13 million or 11.1% of households; 
-- 4.7 million households experience "very low food security" meaning hunger is a persistent problem;
-- households with children have double the food insecurity as ones with none;  
-- single women-headed households are worst off with 30.2% of them insecure; and
-- 53.9% of food-insecure households rely on one or more of the following federal programs - food stamps, the National School Lunch Program, and the Special Supplement Nutrition Program for Women, Infants and Children (WIC); in addition, Feeding America (in 2007) provided emergency food aid to about 25 million low-income people, 8% more than in 2001.

On August 6, the US Department of Agriculture reported a record 34.4 million Americans (one in nine) receiving food stamps in May as unemployment keeps surging. It was the sixth consecutive monthly record, and every state showed an increase as economic conditions worsen.

On September 10, the Commerce Department will release 2008 census data expected to show around another 1.5 million people added to the poverty rolls over 2007 figures - a total of nearly 39 million representing 12.7% of Americans. According to Rebecca Blank, Economic Affairs Undersecretary, final numbers aren't yet in and may be worse than expected because of how bad things are for growing numbers in the country. She believes if (U-3) unemployment hits 10% (up from 9.4% now), poverty could reach 14.8% this year and rising because of jobs and homes lost, savings exhausted, and the sharpest ever decline in personal wealth between mid-2007 and December 2008. 

Worst of all, conditions for most people are deteriorating as businesses, states, and local governments shed workers and cut budgets at the worst possible time. It promises harder times ahead and potentially millions more impoverished.

Homelessness Facts

Annually, two - three million Americans, including 1.3 million children, experience homelessness and many more are at risk. Most vulnerable are those losing jobs, homes, and the millions of low-income workers paying 50% or more of their income in rent so that a missed paycheck, health emergency, or unexpected financial burden makes them vulnerable to homelessness at a time government aid is being cut.

Criminalizing the Homeless

In the face of a growing burden on society's most needy, the National Law Center on Homelessness and Poverty reported that "many cities use the criminal justice system to punish people living on the street for doing" what they must to survive. Local ordinances prohibit sleeping, camping, eating, sharing food, sitting, loitering, and/or begging in public places with criminal penalties imposed on offenders. Some cities even punish organizations and individuals for helping, and the idea always is to keep the unwanted out of sight, mind, and preferably out of cities, at least in or near more affluent areas or business districts. 

As economic conditions deteriorate, the problem will grow and so will the plight of the homeless as cities crack down harder in violation of constitutional and international human rights laws.

The OECD's 2008 Report, "Growing Unequal?: Income Distribution and Poverty in OECD Countries

It states that America "is the country with the highest inequality level and poverty rate" among the 30 OECD countries, ranking only ahead of Mexico and Turkey. In addition, since 2000, inequality grew rapidly, "continuing a long-term trend (going) back to the 1970s" when inflation-adjusted household incomes began falling. Other data cited includes:

-- the gap between rich and middle and poorer income groups widened;
-- government redistribution of income "plays a relatively minor role in the United States," partly because social service spending is low and falling; in 2008 America, it was 9% of household incomes compared to 22% on average in OECD countries;
-- social mobility in America is low, and children of poor families are less likely to become rich; and
-- "wealth is distributed much more unequally than income: the top 1% controls some 25 - 33% of total net worth and the top 10% holds 71%;" other estimates place these disparities much higher and widening as social inequalities increase, high-paying jobs disappear, the middle class keeps shrinking, poverty grows, and federal and state governments cut essential services in the face of increasing need among greater numbers of people.



 
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