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24EvelJustin24 recently gave a no-holds barred assessment of the recent AP article reporting that poverty in the US is rising to the highest levels since 1960. The Working Class need more people willing to speak out and boldly say what needs to be said. The article referred to is reposted below the video. - Lupus
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U.S. Poverty On Track To Rise To Highest Since 1960s
WASHINGTON — The ranks of America's poor are on track to climb to
levels unseen in nearly half a century, erasing gains from the war on
poverty in the 1960s amid a weak economy and fraying government safety
net.
Census figures for 2011 will be released this fall in the critical weeks ahead of the November elections.
The Associated Press surveyed more than a dozen economists,
think tanks and academics, both nonpartisan and those with known liberal
or conservative leanings, and found a broad consensus: The official
poverty rate will rise from 15.1 percent in 2010, climbing as high as
15.7 percent. Several predicted a more modest gain, but even a 0.1
percentage point increase would put poverty at the highest level since
1965.
Poverty is spreading at record levels across many groups, from
underemployed workers and suburban families to the poorest poor. More
discouraged workers are giving up on the job market, leaving them
vulnerable as unemployment aid begins to run out. Suburbs are seeing
increases in poverty, including in such political battlegrounds as
Colorado, Florida and Nevada, where voters are coping with a new norm of
living hand to mouth.
"I grew up going to Hawaii every summer. Now I'm here, applying for
assistance because it's hard to make ends meet. It's very hard to
adjust," said Laura Fritz, 27, of Wheat Ridge, Colo., describing her
slide from rich to poor as she filled out aid forms at a county center.
Since 2000, large swaths of Jefferson County just outside Denver have
seen poverty nearly double.
Fritz says she grew up wealthy in the Denver suburb of Highlands
Ranch, but fortunes turned after her parents lost a significant amount
of money in the housing bust. Stuck in a half-million dollar house, her
parents began living off food stamps and Fritz's college money
evaporated. She tried joining the Army but was injured during basic
training.
Now she's living on disability, with an infant daughter and a
boyfriend, Garrett Goudeseune, 25, who can't find work as a landscaper.
They are struggling to pay their $650 rent on his unemployment checks
and don't know how they would get by without the extra help as they hope
for the job market to improve.
In an election year dominated by discussion of the middle class,
Fritz's case highlights a dim reality for the growing group in poverty.
Millions could fall through the cracks as government aid from
unemployment insurance, Medicaid, welfare and food stamps diminishes.
"The issues aren't just with public benefits. We have some deep
problems in the economy," said Peter Edelman, director of the Georgetown
Center on Poverty, Inequality and Public Policy.
He
pointed to the recent recession but also longer-term changes in the
economy such as globalization, automation, outsourcing, immigration, and
less unionization that have pushed median household income lower. Even
after strong economic growth in the 1990s, poverty never fell below a
1973 low of 11.1 percent. That low point came after President Lyndon
Johnson's war on poverty, launched in 1964, that created Medicaid,
Medicare and other social welfare programs.
"I'm reluctant to say that we've gone back to where we were in the
1960s. The programs we enacted make a big difference. The problem is
that the tidal wave of low-wage jobs is dragging us down and the wage
problem is not going to go away anytime soon," Edelman said.
Stacey Mazer of the National Association of State Budget Officers
said states will be watching for poverty increases when figures are
released in September as they make decisions about the Medicaid
expansion. Most states generally assume poverty levels will hold mostly
steady and they will hesitate if the findings show otherwise. "It's a
constant tension in the budget," she said.
The predictions for 2011 are based on separate AP interviews,
supplemented with research on suburban poverty from Alan Berube of the
Brookings Institution and an analysis of federal spending by the
Congressional Research Service and Elise Gould of the Economic Policy
Institute.
The analysts' estimates suggest that some 47 million people in the
U.S., or 1 in 6, were poor last year. An increase of one-tenth of a
percentage point to 15.2 percent would tie the 1983 rate, the highest
since 1965. The highest level on record was 22.4 percent in 1959, when
the government began calculating poverty figures.
Poverty is closely tied to joblessness. While the unemployment rate
improved from 9.6 percent in 2010 to 8.9 percent in 2011, the
employment-population ratio remained largely unchanged, meaning many
discouraged workers simply stopped looking for work. Food stamp rolls,
another indicator of poverty, also grew.
Demographers also say:
_Poverty will remain above the pre-recession level of 12.5 percent
for many more years. Several predicted that peak poverty levels – 15
percent to 16 percent – will last at least until 2014, due to expiring
unemployment benefits, a jobless rate persistently above 6 percent and
weak wage growth.
_Suburban poverty, already at a record level of 11.8 percent, will increase again in 2011.
_Part-time or underemployed workers, who saw a record 15 percent poverty in 2010, will rise to a new high.
_Poverty among people 65 and older will remain at historically low levels, buoyed by Social Security cash payments.
_Child poverty will increase from its 22 percent level in 2010.
Analysts also believe that the poorest poor, defined as those at 50
percent or less of the poverty level, will remain near its peak level of
6.7 percent.
"I've always been the guy who could find a job. Now I'm not," said
Dale Szymanski, 56, a Teamsters Union forklift operator and convention
hand who lives outside Las Vegas in Clark County. In a state where
unemployment ranks highest in the nation, the Las Vegas suburbs have
seen a particularly rapid increase in poverty from 9.7 percent in 2007
to 14.7 percent.
Szymanski, who moved from Wisconsin in 2000, said he used to make a
decent living of more than $40,000 a year but now doesn't work enough
hours to qualify for union health care. He changed apartments several
months ago and sold his aging 2001 Chrysler Sebring in April to pay
expenses.
"You keep thinking it's going to turn around. But I'm stuck," he said.
The 2010 poverty level was $22,314 for a family of four, and $11,139
for an individual, based on an official government calculation that
includes only cash income, before tax deductions. It excludes capital
gains or accumulated wealth, such as home ownership, as well as noncash
aid such as food stamps and tax credits, which were expanded
substantially under President Barack Obama's stimulus package.
An additional 9 million people in 2010 would have been counted above
the poverty line if food stamps and tax credits were taken into account.
Robert Rector, a senior research fellow at the conservative Heritage
Foundation, believes the social safety net has worked and it is now time
to cut back. He worries that advocates may use a rising poverty rate to
justify additional spending on the poor, when in fact, he says, many
live in decent-size homes, drive cars and own wide-screen TVs.
A new census measure accounts for noncash aid, but that supplemental
poverty figure isn't expected to be released until after the November
election. Since that measure is relatively new, the official rate
remains the best gauge of year-to-year changes in poverty dating back to
1959.
Few people advocate cuts in anti-poverty programs. Roughly 79 percent
of Americans think the gap between rich and poor has grown in the past
two decades, according to a Public Religion Research Institute/RNS
Religion News survey from November 2011. The same poll found that about
67 percent oppose "cutting federal funding for social programs that help
the poor" to help reduce the budget deficit.
Outside of Medicaid, federal spending on major low-income assistance
programs such as food stamps, disability aid and tax credits have been
mostly flat at roughly 1.5 percent of the gross domestic product from
1975 to the 1990s. Spending spiked higher to 2.3 percent of GDP after
Obama's stimulus program in 2009 temporarily expanded unemployment
insurance and tax credits for the poor.
The U.S. safety net may soon offer little comfort to people such as
Jose Gorrin, 52, who lives in the western Miami suburb of Hialeah
Gardens. Arriving from Cuba in 1980, he was able to earn a decent living
as a plumber for years, providing for his children and ex-wife. But
things turned sour in 2007 and in the past two years he has barely
worked, surviving on the occasional odd job.
His unemployment aid has run out, and he's too young to draw Social Security.
Holding a paper bag of still-warm bread he'd just bought for lunch,
Gorrin said he hasn't decided whom he'll vote for in November,
expressing little confidence the presidential candidates can solve the
nation's economic problems. "They all promise to help when they're
candidates," Gorrin said, adding, "I hope things turn around. I already
left Cuba. I don't know where else I can go."
___
Associated Press writers Kristen Wyatt in Lakewood, Colo., Ken Ritter
and Michelle Rindels in Las Vegas, Laura Wides-Munoz in Miami and AP
Deputy Director of Polling Jennifer Agiesta contributed to this report.