Showing posts with label poverty. Show all posts
Showing posts with label poverty. Show all posts

Thursday, June 13, 2024

Report: nearly half of Tennessee households don’t earn enough to meet basic expenses

By Anita Wadhwani

Nearly half of all Tennessee working families cannot afford the basic cost of living in their counties, according to new analyses of Census and federal economic data by the United Way of Tennessee.

The report examined the challenges facing households that earned more than the federal poverty level but, nevertheless, struggle to make ends meet.

While the number of households living in poverty decreased by nearly 5,000 across the state between 2021 and 2022, more than 34,214 households were added to the category of Tennesseans unable to pay for basic needs despite earnings that put them above the poverty level. In total, the report found that 1.2 million Tennessee households fall into this category.

The report concluded that the “survival budget” necessary for a family of four increased to $75,600 between 2021 and 2022. The budget includes the cost of housing, food, childcare, transportation and healthcare — all of which grew more expensive. In 33 Tennessee counties, more than half of all households failed to earn enough to meet their survival budgets.

While wages have increased in that time period, the 20 most common occupations in Tennessee still pay less than $20 per hour, the report found. These include jobs like sales, truck driving, administrative assistants and elementary school teachers.

Although poverty levels for Tennessee kids have shrunk, the report found that 38% of working Tennessee families with children at home did not earn enough to keep up with basic expenses.

This article originally appeared in Tennessee Lookout on June 7th, 2024

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Tuesday, September 13, 2022

Media Summon Inflation Specter to Oppose Student Debt Forgiveness


President Joe Biden’s student debt cancellation plan may not be full forgiveness, but it can still have a life-changing impact on millions of people. Almost 20 million may see their debts wiped clean, and more than 40 million are directly affected. The plan is a step forward for debtors and activists who have spent decades struggling to abolish student debt and make higher education, long promised as the path out of poverty, affordable for everyone.

It represents an opportunity for America’s poor to imagine futures without instrumentalized and alienated labor. Without diseases of despair. Unpunished by debt. A future America’s ruling class has worked hard to prevent.

Bloomberg: Larry Summers Says Student Loan Debt Relief Is Inflationary

Bloomberg (8/22/22)

So, naturally, corporate media outlets like the Wall Street Journal (8/23/22), Financial Times (8/25/22), CNBC (8/24/22), Vox (8/25/22), CNN (8/24/228/25/22), CBS (8/25/22) and Bloomberg (8/22/22) have thrown everything but the kitchen sink at it, trying to convince their audience there’s not enough to go around. Their primary weapon: the inflation bogeyman.

Regurgitating the views of conservative economists and politicians, corporate media are warning debt relief is inflationary, and even that it will transfer wealth upwards. These arguments are another example of how news media use the specter of inflation as a rationale for disciplining workers: Sorry, that’s it. There’s nothing left. No surplus. So how much are you willing to share? Don’t look over here at my huge pile of cash. The arguments trafficked by much of the corporate media in the aftermath of Biden’s debt relief announcement expose a reflexive hostility to social progress, and the use of government to improve the lives of ordinary people instead of benefiting corporations and wealthy individuals.

‘Inflation Expansion Act’

WSJ: Student Loan Forgiveness Is an Inflation Expansion Act

Wall Street Journal (8/23/22)

From headlines decrying Biden’s debt relief plans as pouring gas on an “inflationary fire” (Financial Times8/25/22) and dubbing the policy an “Inflation Expansion Act” (Wall Street Journal8/23/22), to citing manipulative studies by pro-austerity think tanks, the corporate media response to debt relief has stoked fears that providing much-needed relief to student debtors would increase demand, thereby exacerbating inflation.

If gains for working people will necessarily be nullified by corporate price hikes, maybe media should be questioning whether an economy where that’s the case should be reshaped. But media’s claims haven’t even been consistent on their own terms. Debt relief is not nearly as inflationary as media rhetoric suggests, even by the estimations of their most hawkish sources.

For example, the Financial TimesCNBCVoxCNNCBS and The Hill (8/24/22) all cited “America’s foremost pro-austerity think tank” (American Prospect8/26/22), the Committee for a Responsible Federal Budget, which estimates Biden’s cancellation could cost the federal government $360 billion over ten years, driving spending and increasing inflation. Marc Goldwien, senior policy director at CRFB and “America’s foremost spending scold” (American Prospect8/26/22), made the rounds across the corporate news media to share this estimate.

American Prospect: Marc Goldwein and the Limits of Deficit Scolding

Max Moran (American Prospect8/26/22): “According to Goldwein, we couldn’t cancel student loans in 2020 because the boost to the economy would be a paltry $115–$360 billion. But we also can’t cancel student loans in 2022 because the boost to the economy would be a whopping, inflationary (gasp!) $70–$95 billion!”

Biden’s student debt relief plan “is going to worsen inflation and it is going to eat up all the deflationary impact of the Inflation Reduction Act,” Goldwien claimed in the FinancialTimes (8/25/22). Vox (8/25/22) quoted Goldwien saying Biden’s plan will “raise prices on everything from clothing to gasoline to furniture to housing.” Assuming that CRFB’s estimate is accurate—even though there is much reason not to think so—what the estimate actually says is a far cry from Goldwien’s claim that prices will increase.

Economists like Paul Krugman, far from a hero of the left, as well as Mike Konczal and Alí Bustamante of the Roosevelt Institute, pointed out how even CRFB’s estimate shows at most a 0.3% increase in inflation, which wouldn’t “reverse” or even “dent” larger deflationary trends like the Federal Reserve’s interest rate hikes, or even restarting student debt payments, as Biden intends to do at the start of the new year. Krugman explains that given the “fire-and-brimstone” inflation fearmongering, like the talk of “throwing gasoline on the fire” in the Financial Times (8/25/22), the reader might assume debt relief could cause another “major bout of inflation.” Even according to their own sources, this is far from true.

On top of this, the central argument in Goldwien’s case and across corporate media—that debt relief will spur demand—rests on the assumption that canceling people’s debt will incentivize them to buy things for which there is not enough supply to keep prices stable. Heidi Shierholtz, president of the Economic Policy Institute, took to Twitter (5/12/22) to shut this argument down: The latest version of the claim “we can’t have nice things because inflation” is the idea that we can’t cancel federal student debt.… But folks, there is currently a pause on federal student loan repayments, which means that people with this debt don’t currently have debt payments. So even if somebody’s debt is entirely canceled under a new policy, their monthly costs won’t decrease relative to what they currently are. This will dramatically limit any impact on new spending and hence provide no upward inflation pressure relative to the status quo.

That corporate media would boost bad-faith arguments against a policy that represents such a sea change in people’s lives, as well as in the government’s role of helping working people, demonstrates a deep adherence to frameworks of austerity and neoliberalism. As Krugman pointed out in a separate Twitter thread (8/29/22), “what we’re seeing looks more like a visceral response looking for a rationale than a reasoned critique.”

Moreover, these arguments ignore evidence that current inflation is not a result of too much demand, but rather of corporate greed. As FAIR (4/21/22) has previously documented, corporate media have a penchant for putting “far more emphasis” on the contributions to inflation by policies that improve working people’s lives than on “the role of corporate profit-taking.” Despite troves of evidence that corporate monopolies are purposely exacerbating inflation by using the pandemic-related supply chain crisis as cover to needlessly raise costs on consumers—and make record profits doing it—corporate media have once again elected to opine on the inflationary effect of social spending.

‘Take from working class’

That student debt relief is inflationary is not the only argument corporate news outlets have peddled since Biden announced his plan. Critics of student debt relief have also framed the plan as a regressive giveaway to the wealthy, as well as unfair to those who have already paid off their debts.

The same Financial Times article (8/25/22) reported, “Canceling debt is not wholly progressive, given the poorest members of society are less likely to have gone to university.” CBS (8/25/22) noted Sen. Ted Cruz’s view that “what President Biden has in effect decided to do is to take from working-class people.” The New York Times’ morning newsletter (8/25/22) claimed student debt relief “resembles a tax cut that flows mostly to the affluent.”

Newseek: Borrowers With Paid-Off Debt Feel Punished by Biden for Doing 'Right Thing'

Contrary to Newsweek‘s headline (8/24/22), polling finds a majority of past student borrowers support forgiveness of at least some student debt.

Never mind that if forgiving student loan debt were truly regressive, Cruz would be all for it. The reality is that student debt disproportionately impacts Black and brown and low-income borrowers (Roosevelt Institute, 9/29/21). Cancelation would go a long way towards addressing the racial wealth gap and addressing wealth inequality.

Newsweek headline (8/24/22) reported that “Borrowers With Paid-Off Debt Feel Punished for Doing ‘Right Thing.’” The Wall Street Journal (8/23/22) claimed debt relief “insults the millions who paid their loans back.”Astra Taylor, an organizer with the Debt Collective, told Democracy Now! (8/25/22) that this criticism was “so cynical”: First off, I am one of the millions of people who did have to pay their debts. I paid it in full. I do not want anyone else to have to suffer just because I did. Social progress means that other people do not have to suffer through something that previous generations did. And the fact is, polling shows that most people have that attitude.

Student debt was designed as a barrier to keep Black, brown and low-income people from attaining a college education (Intercept8/25/22Boston Review9/1/17). Partial debt relief makes self-determination for America’s most oppressed and exploited groups that much more possible. By trying to convince voters that debt relief will cost them, and that a more egalitarian society is impossible, corporate media are defending America’s ruling class from an educated working class.


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Reprinted with permission.  FAIR’s work is sustained by their generous contributors, who allow them to remain independent. Donate today to be a part of this important mission.
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Monday, April 11, 2022

'A Poor People's Pandemic': Poorest US Counties Suffered Twice the Covid Deaths of Richest

Jake Johnson
April 4th, 2022

Photo credit: Paul Becker
"The neglect of poor and low-wealth people in this country during a pandemic is immoral, shocking, and unjust," said Rev. Dr. William Barber II in response to the new report.

A first-of-its-kind examination of the coronavirus pandemic's impact on low-income communities published Monday shows that  Covid-19 has been twice as deadly in poor counties as in wealthy ones, a finding seen as a damning indictment of the U.S. government's pandemic response.

"The neglect of poor and low-wealth people in this country during a pandemic is immoral, shocking, and unjust, especially in light of the trillions of dollars that profit-driven entities received," said Rev. Dr. William Barber II, co-chair of the national Poor People's Campaign, which conducted the new analysis alongside a team of economists and other experts.

Monday, January 4, 2021

Amid Warnings of Surging Worldwide Poverty, Planet's 500 Richest People Added $1.8 Trillion to Combined Wealth in 2020

Tesla CEO Elon Musk saw the greatest increase in personal wealth in 2020—reported to be the fastest wealth creation in history, according to Bloomberg.(Photo: Kevork Djansezian/Getty Images)

Bloomberg's year-end report on the wealth of the world's billionaires shows that the richest 500 people on the planet added $1.8 trillion to their combined wealth in 2020, accumulating a total net worth of $7.6 trillion. 

The Bloomberg Billionaires Index recorded its largest annual gain in the list's history last year, with a 31% increase in the wealth of the richest people.

The historic hoarding of wealth came as the world confronted the coronavirus pandemic and its corresponding economic crisis, which the United Nations last month warned is a "tipping point" set to send more than 207 million additional people into extreme poverty in the next decade—bringing the number of people living in extreme poverty to one billion by 2030. 

Even in the richest country in the world, the United States, the rapidly widening gap between the richest and poorest people grew especially stark in 2020.

As Dan Price, an entrepreneur and advocate for fair wages, tweeted, the 500 richest people in the world amassed as much wealth in 2020 as "the poorest 165 million Americans have earned in their entire lives."

Nine of the top 10 richest people in the world live in the United States and own more than $1.5 trillion. Meanwhile, with more than half of U.S. adults living in households that lost income due to the pandemic, nearly 26 million Americans reported having insufficient food and other groceries in November—contributing to a rise in shop-lifting of essential goods including diapers and baby formula. About 12 million renters were expected to owe nearly $6,000 in back rent after the new year. 

Tesla CEO Elon Musk enjoyed an historic growth in wealth last year, becoming the second richest person in the world and knocking Microsoft co-founder Bill Gates down to third place. Musk's total net worth grew by $142 billion in 2020, to $170 billion—the fastest creation of personal wealth in history, according to Bloomberg. 

Amazon founder Jeff Bezos is at the top of the list, with a net worth of $190 billion. Bezos added more than $75 billion to his wealth in 2020, as the public grew dependent on online shopping due to Covid-19 restrictions and concern for public health. 

While Bezos and a select few others in the U.S. have amassed historic gains in personal wealth in the last year, the federal government has yet to extend much in the way of meaningful assistance to struggling Americans. The Republican-led Senate on Friday continued to stonewall a vote on legislation that would send $2,000 checks to many American households.

Senate Majority Leader Mitch McConnell (R-Ky.) denounced the proposal as "socialism for rich people" even though the plan includes a phaseout structure and individuals making only up to $115,000 per year—not those in the highest tax brackets—would receive checks. 

"Surging billionaire wealth hits a painful nerve for the millions of people who have lost loved ones and experienced declines in their health, wealth, and livelihoods," Chuck Collins, director of the Program on Inequality and the Common Good at the Institute for Policy Studies, told Bloomberg this week. "Worse, it undermines any sense that we are 'in this together'—the solidarity required to weather the difficult months ahead." 

Wednesday, July 6, 2016

The Big Business of Poverty pimps the poor


Two years ago, during the aftermath of police violence and protest demonstrations in Ferguson, Missouri, the nation witnessed a militarized police force, and learned of dismal police-community relations, as well as a scheme resembling debtor prisons.  The Department of Justice (DOJ) investigated and issued their report, "Investigation of the Ferguson Police Department". 

They found practices that were unlawful, deeply-entrenched and unconstitutional: “Ferguson’s law enforcement practices are shaped by the City’s focus on revenue rather than by public safety needs. This emphasis on revenue has compromised the institutional character of Ferguson’s police department, contributing to a pattern of unconstitutional policing, and has also shaped its municipal court, leading to procedures that raise due process concerns and inflict unnecessary harm on members of the Ferguson community.” While the report shows a link between debtor prisons and the prison industrial complex – there’s also strong link to the growing poverty industry as well too.
  
Daniel L. Hatcher has written a new book on this topic called, The Poverty Industry: The exploitation of America’s most vulnerable citizens.  Mr. Hatcher recently visited the Busboys and Poets Bookstore and Café in Washington D. C., on June 29th, to talk about his new book.  For roughly thirty minutes before a question/answer session, Mr. Hatcher provided a glimpse into the poverty industrial complex and how this massive network manages to divert funds from, who Mr. Hatcher appropriately characterizes as America’s most vulnerable citizens – impoverished families, abused and neglected children, and the disabled and elderly poor. “My hope to getting this book out is to provide awareness because with awareness you have the potential for change.  So in the poverty industry, I’m hoping to expose and explain several of these revenue maximizing practices that states and state agencies to use on the most vulnerable populations,” explains Mr. Hatcher.  

Wednesday, February 12, 2014

Poverty in America: who is really deserving of help?

By Charles Brooks

The Economic Policy Institute recently reported that in the roughly three decades leading up to the most recent recession, looking at the officially measured poverty rate, educational upgrading and overall income growth were the two biggest poverty-reducing factors, while income inequality was the largest poverty-increasing factor. The federal government set the poverty line at $23,550 for a family of four in 2013, $11,490 for a single individual, and $4,020 for each individual person. The Blackboard spoke with Dr. Wilhelmina A. Leigh, who serves as a Senior Research Associate with the Joint Center for Political and Economic Studies, about poverty in America: “People have to be aware of (poverty), care about it and understand that having the kind of inequality we have in this country is not good for any of us. People have to be made aware, somehow, that inequality and high levels of poverty impairs all of our lives and limits the growth of our economy.”

The poor suffers again...billion$ in cut$ to food stamp$

By Charles Brooks

                         Photo credit: kevin dooley via photopin cc

Just ten days after delivering his most recent State of the Union address, where he described 2014 as the “year of action” – President Barack Obama kicked off the year by signing into law a $987 billion Farm Bill. In doing so, the president signed away $80 billion, over a ten-year period, in cuts to food stamp benefits. According to the Congressional Budget Office, the cuts will affect approximately 850,000 people, who will see their monthly benefits reduced by $90. But just a few days ago, President Obama stood before the nation and outlined his proposals designed to tackle poverty, income inequality and economic mobility. These proposals focused on job creation, immigration reform, tax policy reform, job training, and unemployment insurance reform. Yet days later, President Obama talks about the reforms and the billions of dollars the new law will save. The $987 billion Farm Bill appears to be another example of how public policy can exacerbate poverty while simultaneously advancing income inequality. Consider for a moment that while billions of dollars are cut from food stamps – the agribusiness interests will reap the benefit$.

Tuesday, February 4, 2014

President Obama's State of the Union address - "At least they're thinking about it..."

By Charles Brooks
(Official White House Photo by Chuck Kennedy)
In the days leading up to President Barack Obama’s fifth State of the Union (SOTU) address, income inequality emerged as a highly anticipated topic to be discussed. This was quite understandable and actually made sense considering the recent events - the president’s speech on income inequality (though billed as a speech on economic mobility), his announcement of the Promise Zones as part of his administration’s anti-poverty strategy, and the celebration of the 50th anniversary of the War on Poverty. As the president delivered his address and spoke about working hard and getting ahead in America, he said, “Now, let's face it: That belief has suffered some serious blows. Over more than three decades, even before the Great Recession hit, massive shifts in technology and global competition had eliminated a lot of good, middle-class jobs, and weakened the economic foundations that families depend on.” The President continues, “Today, after four years of economic growth, corporate profits and stock prices have rarely been higher, and those at the top have never done better. But average wages have barely budged. Inequality has deepened. Upward mobility has stalled. The cold, hard fact is that even in the midst of recovery, too many Americans are working more than ever just to get by; let alone to get ahead. And too many still aren't working at all. So our job is to reverse these trends.”