On Poverty

Let me begin by apologizing for the recent lack of substance around here. Between classwork and increasing frustration with both political parties, it’s been hard to get inspired.

So, poverty is up again this year. It’s almost un-news this time. Reuters calls it “the latest sign that an economic recovery marked by a stock market boom has not trickled down to ordinary Americans.” Not just the sign or a sign: the latest sign. And gee, surprise surprise, keeping the interest rate that banks can charge one another low doesn’t seem to help Joe Average pay his bills! Imagine that! Here’s some facts for you:

Numbers released this week by the Census Department show exactly how pervasive poverty is in the U.S. To be defined as poor by the government, a single person can earn no more than $11,490 per year, while for a family of four the threshold is $23,550. About 46.5 million Americans, or 1 in 7, lived at or below that level last year. Extend the definition just slightly to 125 percent of the poverty level — $14,362 for one person and $29,437 for a family of four — and the ratio drops to 1 in 5, fully 20 percent of the population.

Almost 42 percent of U.S. households below the poverty line are headed by single women, that’s up from 28 percent in 2007. Many of the people who live close to or below the poverty line have jobs: More than 30 percent of working-age adults earning 125 percent of the poverty line or less worked year-round in 2012, according to the Census Bureau. Roughly a quarter of the officially impoverished worked part-time, while 5.5 percent worked full-time. Nearly 9 percent of those working part-time earned less than half of the poverty level.

So no, we aren’t talking about lazy slobs who don’t want to work. We’re talking about 1 out of every 7 people you’re likely to encounter on the street, more if you know people of color. Even if you live in some “nice” suburb somewhere. And for those people, advice like “Max your 401k contribution” or “have savings of at least three months of living expenses” are sick jokes. How do you save that kind of money when you aren’t even sure you’ll cover the rent on the first of the month?

The Japan Times recently published a commentary titled “Politicians hardly ever mention America’s poor.” Now think about that a moment. The Japanese know we have a poverty problem. This isn’t an article about poverty in Bolivia or India, but America and it’s poor. And our politicians are too busy to talk about them. That’s actually probably for the best, seeing as their challenges are often misunderstood, the solutions are sometimes tangential, and Washington appears to be doing their very best to push them [further] under the bus.

And that brings me to food stamps — or as it is officially known, the SNAP program. As we all remember, the House voted to cut $4,000,000,000 ($4 billion with a b, or $4000 million if you’d like to think about how big that is) from SNAP, while the Senate only wants to cut $400,000,000 ($400 M). Mighty nice of them Senators. The House also wants to let states impose work requirements despite the fact that many of the poor have jobs (and many more are disabled) and drug testing (proven to be a waste of money, but it does serve the primary purpose of humiliating the person in poverty further). It’s hard enough to feed yourself on SNAP, but the politicians who never mention the poor directly want to make it harder.

I guess none of them paid much attention to the plot of last year’s critically acclaimed movie, Les Misérables. Desperate people do desperate things.

I’m not a Catholic by any stretch of the imagination, but I do believe Pope Francis speaks words Jesus would have approved of when he said “We want a just [economic] system that helps everyone.”

In Closing:like “will cost much less than expected”; perspective; I bet more of us use math regularly than play football regularly; “The Tithe” is worth reading, here’s part one; maybe the start of a someday HIV cure?; and may you never have to choose which bills go unpaid.

Time’s Wasting

Congress is officially out for the year. It’s the earliest departure in over 50 years, and the least productive Congress since World War 2. But there’s no point in beating your head against a wall to do nothing. Besides, by adjourning early, Harry Reid gave Scott Brown no excuse to miss his debate with Elizabeth Warren!

However, I must point out that Congress left a number of things undone before leaving town. Sure, maybe they’ll have better luck in the new Congress come January but I doubt it. Here’s just a few things:

  • They refused to vote on a bipartisan compromise farm bill that would have reformed agricultural subsidies and “food stamps.” Now we revert back to a bill from 1949.
  • They didn’t do anything about the massive looming cuts in public health and science.
  • They may yet find a way to weasel off the “fiscal cliff” by delaying it. And of course it’s easy to delay it again. And again….
  • They saved trade with Russia for later.
  • They haven’t passed a long overdue transportation bill.
  • They didn’t pass a budget, despite the fact that the new fiscal year starts a week from Monday
  • They have yet to do the will of the people and completely drive a stake through the heart of SOPA.
  • They have not extended the Mortgage Forgiveness Debt Relief Act — one of the good pieces of legislation to come through on GW’s watch.
  • And as they say on the infomercial, many many more.

Remember Come November. Register to vote NOW.

In Closing: radical Islamic cleric almost foils FBI terrorist sting; way to report “news,” CNN; didn’t Jesus say something removing the plank from your own eye first?; hope she got the job; 30 years of emoticons; now he says it; ha, if they had a clue I would still be driving their cars; and desert blooms.

Oh Boo Hoo

Fortune Magazine tells us that “For banks, it’s getting harder and harder to earn a buck.” That’s because interest rates are so low. Or at least that’s what “conventional wisdom” would tell us. Please cry for the banks and demand higher interest rates!

Not so fast. If banks are having such a hard time making an “honest” buck, then how come “U.S. bank earnings rose 21% in the April-June quarter and lending to consumers increased, adding to evidence that the industry is strengthening four years after the financial crisis.” Turns out there’s actually a good reason the banks are doing so well:

That’s because most of them have increased the historic spread between the interest they charge for mortgages and the interest they have to pay for their own borrowing and, of course, the now minuscule rates they pay to folks with savings accounts. As a result, according to a recent news story in the New York Times, bankers are enjoying ballooning profits from their mortgage business.

If the banks were using the formula that was in effect up until a couple of years ago, the 3.55 percent rate for a 30-year mortgage would be close to 3.05 percent. Or, they could increase the rates they pay savers by about a half percent.

So yeah, the gap between “what they pay you” and “what we pay them” got bigger despite mortgage rates near record lows.

I hope Fortune Magazine isn’t hoping for a subscription fee from me anytime soon.

In Closing:  you might want to disable Java; trying to change the law without bothering to involve lawmakers; 14.8% of Americans are on food stamps; and Boehner admits that the easiest way to win is for poor people to stay home on election day.

Tucker and Shorties vs Evil

Inspirational Story of the Day: Teen disappointed that he didn’t make the soccer team, so he loses 60 pounds and deadlifts 308 pounds. There are lots of things you can do if you want to badly enough.

Um, Yeah: I can see where meeting a co-worker in such a place might be bothersome. Just say “but it’s the Wall Street Journal! I thought it was business news!” if you get caught reading that at work.

Hi-Ho Silver! Away!: Now might be a good time to sell?

That’s a Good Point: Charity and God may go well together, but not always.

What Would Your Doctor Do?: Say no to nudie-scanners.

Let’s just put all this economic news in one spot: First, we’ve got payroll numbers, which are “rising” but at too slow a pace. Campaign for America’s Future reminds us that “it’s the economy, stupid” and “Americans want government to play a larger role in economic recovery.” Because big business doesn’t give a damn; after all there’s an entire rest of the world to exploit. Tiger Beatdown has a nice item on the ongoing class war that nobody [wealthy] wants to talk about. Meanwhile, more and more families are feeding their families with help from food stamps. Inflation is going to make things even worse for those of us who aren’t millionaires. Tim Iacono points out that the savings rate is even worse that we think. Teen joblessness may reach record levels this summer — which means expect idle teens to find ways to get into trouble. People are defaulting on their student loans. But hey, at least small businesses are borrowing money; maybe they’ll actually hire people.

How interesting: So with gas prices what they are and our nation importing oil, American oil companies are exporting more oil than they sell here! And best of all they are sucking down American tax dollars at the same time!

Even Shutting It is Controversial: Yucca Mountain. I guess some good padlocks aren’t sufficient, eh?

Fortune is Right: What good is a consumer protection agency that can’t protect? If Congress waters down consumer protections, or Elizabeth Warren doesn’t get to head the CFPB, you will know that our lawmakers have sold our souls to the banksters that ripped us off.

Susan’s Got a Point: It is called “special education” for a reason.

Eric Holder’s Vow is Worthless: Back in 2009 he vowed to stop raids on medical marijuana facilities (yeah, I’m no HuffPo fan, but the only better link was NYT). But I guess whatever forces really control the War On Drugs Used By Poor And/Or Brown People told him how stuff is: his office has warned states that they will prosecute anyone they think they can prosecute for medical marijuana. Never mind what the people think. Their opinion only counts on election day, after all.

The More Things Change, the More They Stay the Same: Marie Osmond celebrated her wedding to her third husband… who just happened to have been her first husband. She even got to recycle her original wedding gown. Thanks, NutriSystem!