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The High Cost of Ignoring PovertyPosted on May 4, 2007By E.J. Dionne WASHINGTON—Republicans once preached compassion, but then went off to war. Democrats waged a war on poverty, but then lost some elections. They decided the middle class is where it’s at. But the poor are still with us and their ranks are growing. One in eight Americans lives in poverty, which seems obscene given that the really rich are enjoying a level of privilege that may make the Vanderbilts in the Gilded Age look like abstemious Puritans. “Rising inequality” is a bloodless term. But consider the facts behind the phrase: In 2005, the richest 1 percent of Americans held 19 percent of the nation’s income, the largest share since 1929; the poorest 20 percent held only 3.4 percent. The historically inclined will recall that 1929 was the year of the great crash, which was followed by the Great Depression. History suggests that concentrating wealth and income in a small group of privileged people is bad for economic growth. One reason our nation has maintained generally healthy levels of economic growth is our success in spreading income around—particularly during the 1940s to the early 1970s. This created more purchasing power among an ever larger group of Americans. We are thus tempting fate by following the formula of Andrew Mellon, the Republican Treasury secretary in the Roaring ’20s who never met a tax cut for the rich he didn’t like. He was rather popular until 1929. Here’s the odd thing about the present moment: As a country, we are much more practical about poverty reduction than we were in the 1960s. Most plans on offer are not utopian schemes. They promote work and would build ladders so today’s poor can become tomorrow’s middle class. That’s the significance of the antipoverty report issued last week by the Center for American Progress, the think tank that is the closest thing we have to a Democratic administration in exile. The CAP report deserves more attention than it has gotten, not because it breaks new ground but precisely because it brings together some of the most pragmatic ideas on poverty reduction. The task force that prepared it included veteran liberals such as Peter Edelman and Angela Glover Blackwell, but also resolute middle-of-the-roaders such as the Rev. Floyd Flake, a champion of faith-based approaches to poverty, and Charles Kolb, president of the pro-business Committee for Economic Development. Their first recommendations aren’t revolutionary, just sensible: They’d raise the minimum wage, and they’d expand the Earned Income Tax Credit, a program supported by Ronald Reagan and expanded by Bill Clinton. The EITC has done more than any other measure to keep working Americans out of poverty. The task force would also make unionization easier, on the theory that giving workers the power to bargain for themselves is better than a government handout. More should be done for poor 16- to 24-year-olds who are out of school and out of work. In 2005, the report says, there were 1.7 million of them, a number big enough to be alarming but small enough to give public policy a chance to make a difference. Other recommendations are designed to promote upward mobility through expanded child-care assistance, “early education for all” and stepped-up efforts to make higher education more accessible. The panel would modernize the unemployment insurance system and other low-income programs that date back 30 years or more. Capitalists should like their proposals to give the poor more access to financial services and expand their ability to save. And to prevent a new crime wave, the task force urges us to do a lot more to “help former prisoners find stable employment and reintegrate into their communities.” Will all this cost money? You bet, about $90 billion a year—a little over one-fifth of the annual cost of the 2001 and 2003 tax cuts, many of which go to the rich. This would not break the bank of a country with a $13 trillion GDP, and it’s for programs that cannot be demonized as more of “the failed old liberalism.” The new Democratic majority in Congress seems determined to “fix” the alternative minimum tax, which unfairly pushes many middle- and upper-middle-income taxpayers into brackets they shouldn’t be in. That’s just fine. But these taxpayers are still doing reasonably well after taxes. A lot of Americans in the ranks of the working poor are not doing well, and they are the people Democrats claim to represent. And it would be awfully nice if Republicans revisited their commitment to compassion. As President Bush knew in 2000, swing voters like that sort of thing. E.J. Dionne’s e-mail address is postchat(at symbol)aol.com. © 2007, Washington Post Writers Group Previous item: From the Mind of the 'Commander Guy' Next item: Maverick Candidate Mike Gravel Elsewhere: . CommentsAre you a Truthdig member yet? Login now, or register with Truthdig. Add Your Comment |
By RobertBennett, May 7, 2007 at 11:45 pm #
Well done, Mr. Dionne.
I don’t agree with all of it, but that’s fine. This is real journalism.
Don’t get me wrong, I’m still getting most of my news from The BBC, but this is definitely a step in the right direction.
Peace,
Report thisBob Bennett
Lick Skillet, AL
http://thespiritandthestone.squarespace.com/
By euni84, May 7, 2007 at 3:19 pm #
According to the Borgen Project and World Bank:
Annual Cost of Improving the World
• $19 billion: Eliminates starvation and malnutrition globally.
• $12 billion: Provides education for every kid on earth.
• $15 billion: Provides access to water and sanitation.
• $23 billion: Reverses the spread of AIDS and Malaria.
The Cost in Perspective
• $522 billion: U.S. Military budget this year.
• $340 billion: Cost of Iraq War thus far.
When you think that fnding doesn’t make a difference in the fight against poverty, remember that malnutrition has been cut in half in the past 20 years. Of course ending global poverty and providing education will come at a great cost and require very well planned action, but the process of ending global poverty really needs to begin in order to tackle all of the issues facing the world and the U.S. today: terror, disease, inequality, genocide, etc.
In my opinion, the U.S. should redirect a fraction of its $522 billion military budget to the UN Millennium Development Goal to end global poverty. Regardless of whether you are a cynic or an optimist when it comes to poverty issues, poverty needs to be addressed and it would be a lot more successful than the failed war we are fighting.
Report thisBy Screaming Inflation, May 6, 2007 at 5:16 pm #
(Unregistered commenter)
The Iraq War will Bankrupt the USA via Treasurys and most Americans when it is done through Inflation.
Commodity Chart CRB from 1997 to present; including all ENERGIES, all FOOD, all Metals (including GOLD)
Remember GOLD in the early 1970’s Vietnam...800.00 an ounce. It’s Back in the futures market.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ http://charts3.barchart.com/chart.asp?vol=Y&jav=ad v&grid=Y&org=stk&sym;=$CRB&data=H& code=BSTK&evnt=adv ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ US Dollar Chart plunging with a 33 % loss in value, screaming Inflation ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ http://charts3.barchart.com/chart.asp?vol=Y&jav=ad v&grid=Y&org=stk&sym;=$DXY&data=H& code=BSTK&evnt=adv ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Oil Chart back to 1997 showing prices that match war dates afghanistan 10/2001 ; Iraq War 3/2003 Extreme LOWS. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ http://charts3.barchart.com/chart.asp?vol=Y&jav=ad v&grid=Y&org=stk&sym=CLM7&data=H&code=B STK&evnt=adv ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ GOLD Charts back to 1997 to present 800.00 an ounce just like VIETNAM. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ http://charts3.barchart.com/chart.asp?vol=Y&jav=ad v&grid=Y&org=stk&sym=GCM7&data=H&code=B STK&evnt=adv ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ORANGE JUICE Chart ; Cost 1/2001 2.10 a Gallon for Tropicana Orange Juice Current Price 6.99 Per Gallon ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ http://charts3.barchart.com/chart.asp?vol=Y&jav=ad v&grid=Y&org=stk&sym=OJN7&data=H&code=B STK&evnt=adv
Ford those you searching for gasoline at good rates try here:
http://www.gasbuddy.com/gb_retail_price_chart.aspx?time=24
Pull up a 6 year chart along with “show crude oil price” on the charts. You can do same at the bottom near the customize section. You can further search towns for cheap gas......4.20 national average coming soon.
Report thisBy Metric Clay, May 5, 2007 at 12:03 pm #
(Unregistered commenter)
I am a Human Rights Active who is trying to help end the poverty in this nation and the world. I have two websites at The United States walked out of the Race Conference in Duran, South Africa in 2001 that was support to help payback reparations to African Americans. The CIA has caused more Third World Resources to be lost with more than 10,000 minor wars and 3000 Major War there. http://www.thirdworldtraveler.com/Stockwell/John_Stock well.html The World Bank and International Monetary Fund is to help with some Debt relief to poor nations. The United Nations Millennium development Programme is trying to help end some debt in poor nations. There are other Nonprofit groups that are doing things to help to end debt in other nations like Jubilee USA and Africa Action with their links. There have been bills brought to Congress with Debt and Reparation relief.
Report thisBy Metric Clay, May 5, 2007 at 12:01 pm #
(Unregistered commenter)
I am a Human Rights Active who is trying to help end the poverty in this nation and the world. I have two websites at http://metricclay.spaces.live.com and http://bellsouth.net/p/PWP-metclay The United States walked out of the Race Conference in Duran, South Africa in 2001 that was support to help payback reparations to African Americans. The CIA has caused more Third World Resources to be lost with more than 10,000 minor wars and 3000 Major War there. http://www.thirdworldtraveler.com/Stockwell/John_Stock well.html The World Bank and International Monetary Fund is to help with some Debt relief to poor nations. The United Nations Millennium development Programme is trying to help end some debt in poor nations. There are other Nonprofit groups that are doing things to help to end debt in other nations like Jubilee USA and Africa Action with their links. There have been bills brought to Congress with Debt and Reparation relief.
Report thisBy Outraged, May 5, 2007 at 10:04 am #
In response to:
#68122 by Novista on 5/04 at 8:07 am
“I’ll tell you about poverty. It’s my parents working for “a dollar a day” during the Great Depression, before I was born. No handouts in those days, root, hog or die!
They prospered, by hard work and saving, and had a modestly good life.”
You say, “modestly good life” and then talk about “root, hog or die!” What are you comparing the “modestly good life” to? DEATH! I’m so sick of hearing of how wonderful it is for people to matyr themselves for a dollar and then glorify it. Maybe you don’t know how your parents really felt about suffering just to have food. What are you thinking? That we should all just “get tough” and “root, hog or die!
Yes, in one of the richest countries in the world we definitely CAN afford social programs that work. Number one, this is TAXPAYER money and should go back to the people. There are numerous benefits to society as a whole to have health care and other social programs available. One of the most ruthless campaigns yet is definitely what we have done to the struggling young adults of our country, the 18-24 yr. olds. They’ve made higher education extremely hard to attain, unless they have money. If they have a child they qualify for healthcare programs but not if they don’t.
We call students attending college, “COLLEGE KIDS” but when it comes to the less-advantaged, this same age group are called “ADULTS”!!! As such, they better get their arses out there and work. It is a sick and degenerate ideology to endorse this, but our policies do. This double standard ensures that there will always be the those available to be abused.
SHAME on any person, corporation or organization who hires ANYONE for ANY position for less $10.00 an hour. You have denied your fellow human being the right to have at least one of the necessities of life: food, housing and healthcare, WITHOUT WHICH PEOPLE CAN AND DO DIE!
Report thisBy fpal, May 4, 2007 at 5:14 pm #
(Unregistered commenter)
Programs won’t eliminate poverty.
To solve the problem understand how wealth is accumulated and how its desires are exercised.
The corporation, as constituted today by law, needs to be changed. First, we must change the law that gives corporations the status of a legal person. Second, corporations must not be able to contribute to political parties. And, third, corporation must be responsive to their stakeholders, i.e., their employees, communities, investors and country.
This will change the poverty dynamic.
Report thisBy AnnaCatherine, May 4, 2007 at 2:21 pm #
(Unregistered commenter)
Most of the poverty we have today has been ‘created’ in less than ten years. Jobs gone to foreign countries, wages down and a pitiful job market no matter what the statistics say. Higher Education is out of reach for more and more people every day. I can’t believe that this all happened by accident.
Report thisBy Dale Headley, May 4, 2007 at 12:50 pm #
(Unregistered commenter)
I think most Republicans are compassionate. The trouble is that they don’t run the country right now, the neocons do, and they sneer at compassion. More than anything, the neocons are determined to take revenge on FDR and to drive this country back to a time when there was a super rich upper class; a massive underclass breaking their backs to satiate the acquisitive desires of the rich; and a negligible middle class. Unless something is done, and done soon, that is where we are all headed.
Report thisBy royf, May 4, 2007 at 12:38 pm #
Here is some UNcommon sense. The key to increasing economic well-being is increasing labor productivity (automation). When workers produce more per hour, everyone can either work as long and have more stuff, or have as much stuff and not have to work as long, or some of both. However, since workers are only paid when they work, automation produces the paradoxical result that workers are worse-off even as there’s more wealth, and the business owners, mostly the rich, walk off with the extra wealth because their labor costs have fallen. Therefore, the key to increasing economic well-being is automation PLUS leftist economics that ensure that everyone gets a fair share of the increasing wealth and/or leisure.
Leftists tend to be for more jobs, for work instead of a “handout”, but they should be for less work. Some people truly love their jobs, but for many, it is wage slavery for most of their waking hours. Promoting a form of slavery is anything but leftist. They should instead be asking, “How LITTLE work could it take to produce everything that people buy?”
Much of the work in our economy is make-work that doesn’t actually produce anything, a form of lower productivity. There are advertising wars, healthcare bureaucracy, financial services, litigiousness, our insanely complex tax code and the accountants to deal with it, and of course, war. Since workers are only paid when they work, there is a tendency to produce more make-work as an EXCUSE to pay them. Any attempt to get rid of make-work is fought tooth-and-nail by workers and industries trying to keep their jobs and businesses.
If we got rid of all the make-work, we could probably reduce the work week to 20 hours, maybe even 10. On the other hand, all those people who claim to love their jobs and would never want to retire, or who do volunteer work, would do some amount of work voluntarily, maybe 10 hours a week on average, maybe even 20. Most people would probably get bored just watching TV all day. So there might be enough people to do all the work voluntarily, no one forced out of economic necessity, especially if we concentrated on getting rid of the unpleasant work such as janitor and garbage pick-up, which is doable. And if not yet, increasing technology keeps automating away more work all the time.
Democrats lost elections when they waged a war on poverty because they had the middle class, the vast majority of voters, pay taxes for it, and they came to resent it. Back then, the total wealth of the rich was relatively small, so taxing them didn’t produce much revenue, and they had to tax the middle class. But no longer. Now, they could win elections by raising taxes on the rich to 40 or 50% of their income, eliminating corporate welfare, and using the money to give massive tax cuts to the middle class, even eliminate all their taxes entirely. Then they could combine all entitlement programs (Social Security, unemployment insurance, welfare) into a simple graduated “negative tax” for the lower middle class and poor, the less they earn the more they get, with a guaranteed minimum income for those at the bottom. If there’s little or no work we must coerce people to do, what’s wrong with giving “handouts”? Since the bottom 99% of voters would have more, I find it hard to believe Democrats wouldn’t win elections with landslides, even with Republicans bombarding the airways with ads screaming, “socialism!” to try to scare everyone. All Democrats would have to do is keep their message simple enough for everyone to understand: “Vote for us, and you will have MORE MONEY!” Total elimination of taxes for almost everyone instead of higher taxes—that certainly wouldn’t be more of “the failed old liberalism”!
The ideas above may be “utopian”, but the half-measures this article promotes partially perpetuate the conventional way of economic thinking that really makes no sense.
Report thisBy rfields, May 4, 2007 at 11:25 am #
If we begin with the publication of the Wealth of Nations, Capitalism is only 230 years old. It is now metastasizing into its global variant, revealing ever more clearly its logic of inequality. Adam Smith himself observed that for every rich man there must be 400 poor men. Bad principles fail of their own success. The conservative ideology of inequality is failing… an attempt at a replacement is at http://www.democraticcritique.us. Comments are hoped for.
Report thisBy Ron Fields, May 4, 2007 at 11:13 am #
(Unregistered commenter)
If we begin with the publication of the Wealth of Nations, Capitalism is only 230 years old. It is now metastasizing into its global variant, revealing ever more clearly its logic of inequality. Bad principles fail by their own success. The conservative ideology of inequality is failing… an attempt at a replacement is at: democraticcritique.us.
Report thisBy THOMAS BILLIS, May 4, 2007 at 10:44 am #
(Unregistered commenter)
Americans are morons.Alleviating poverty helps all.Just as LBJ’s war on poverty created the black middle class of today.Is anyone delusional enough today to beleive that Halliburton would be the successful company it is today without government welfare.We seem to accept welfare for corporations as an American right.But to help alleviate poverty in individuals we view as a sin.Work programs ,substanial subsidies for minority education k -12 and affirmative action to name just a few ideas that would help are viewed as giveaways.We would rather build prisons and accept high crime rates than do something constructive on the front end.It is mind boggling.Not to mention what it says about us as a people.The Republican stance is more than hypocritical to carry a bible in one hand and not do as much as one can to alleviate poverty guarantees them a spot in the hottest corner of hell.To quote scripture"Easier for a camel to fit through the eye of a needle than for a rich man to get into heavan."Give me a poverty alleviating LBJ over a bible toting George Bush any day.PS Do not delude yourself middle class today you are closer to poverty than you are to being wealthy.
Report thisBy GW=MCHammered, May 4, 2007 at 8:58 am #
(Unregistered commenter)
It’s past time for a World Court class action lawsuit, the bottom 20% against the top 10%. Then a Middle Class coup d’état and coup de grâce flying the Gadsden flag… Don’t Tread On Me.
Report thisBy Novista, May 4, 2007 at 8:07 am #
Like cooking rice ...
Heat the water to a boil, pour in the rice, thermal shift ... the tiny grains lie quiescent, docile even, until the water heats, and then they jump around wildly.
Years ago in Cincinnati, I read the Wall St. Journal concurrently with the Daily Worker. Ha!
Anyway, back in the mid 60s, the WSJ published a list of ‘millionaires’ that paid NO tax. Once I ‘ran the numbers’ using government statistics on the economy. For a flat tax, NO exceptions, wveryone would be paying a few percent.
At some point, the maximum tax on ‘a rich person’ was 91%. I’ve been one to look at either end of a bell curve, make up scenarios:
If this is viable, it should be valid for one who is a devout Christian and does tithe. Therefore 91 + 10% = sunk well below the poverty line, living on his capitalm. Is this rational?
OK, hypothetical example. I’m sure no wealthy person ever paid 91% tax. Therefore, I conclude a graduated tax table is produced to fool us.
Here in the land of oz, a media mogul, Kerry Packer. I don’t think he ever paid any tax. I worked at a facility once his, but sold off. Even so, every employe there got a Christmas hamper the next holiday season. Of course, he employed lawyers and MBAs to look after him.
Otherwise they would have been on the street. [grin]
Some years back, the Australian Tax Office thought they ‘got him’! It ended up in the Victorian Supreme Court for some paltry sum. The ATO lost.
Ghod knows how much that exercise cost the Australian taxpayer.
As an American born before World War 2, I look on notions of ‘social good’ with skepticism. I got my Social Security Card when I was 12 years old. The government Lies of the Times led one to believe this was a sure investment for one’s final years.
Now, with baby boomers starting to run scared, we are called “unearned eaters”. Guess they are shaky about their turn at the trough?
Fact is, we were living a lie we never chose. It took years for me to understand the true perfidy of the system. All I know is, I and my parents lived through WW2, like honest poor folk, obeying food rationing and so on.
Like Tricky Dicky’s 1971 price-and-wage freeze. A follow-on from OPEC, allegedly. Only, there were oil tankers along the eastern seaboard with full cargo - and nowhere to discharge. Because every storage facility was already full.
People died in the cold that winter, no heat because no fuel.
Upward mobility, early education for all, no child left behind, youth unemployment, all talking points for a country that forgot where it came from. We once had a Constitution, some people even acknowledged it.
Now, we have no common sense. Teachers that call the cops when an eight-year-old has a tantrum. Border police doing their job, thrown into prison on the immunity testimony of the Mexican drug smugger they shot in the arse.
Social do-gooders who think, if only the guvmint woulda done the right thing. Well, boys’n’girlz, where the bloody hell you think the money comes save from y’all???
All a shell game, monopoly money being redistributed from some to some others. With the federal bureaucracy sliming off the top.
I’ll tell you about poverty. It’s my parents working for “a dollar a day” during the Great Depression, before I was born. No handouts in those days, root, hog or die!
They prospered, by hard work and saving, and had a modestly good life.
Now, tho’ EJ rabbits on about GDP, no one saves. GDP is monopoly money anyway. Keep watch on the housing bubble, the hedge funds/derivatives/stock market unregulated, unrestrained, AND led down the garden path by the Federal Reserve phony System {private banking corporation} has led us all into the valley of death. No social welfare scheme is going to pull the U.S. out of bankruptcy.
When the bubble bursts, it’ll be back to reality.
Report thisBy KISS, May 4, 2007 at 6:38 am #
Unfortunately E J forgets the rage and resentment the upper class has for the those in the poverty level. You can hear it all through the President’s administration and even from the religious right. The phrase is: “ These people don’t wanna work”. The only thing that gets their attention is the thought of revolution. Lucky for the wealthy that the poorest are so docile.And too, it is a shame that the poverty level is so far from actual reality. It is worse than what is considered poverty. A single person is in poverty with $10,210.00 per annum. That is not poverty that is not even existence. A couple making $13,890.00 is next..again this is not existence. These are but two examples of deceit. People cannot sustain their lives on these meager amounts.Even with programs to help those in the poverty level, life is unbearable.
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