Immigration and Poverty

Who?
As you may have guessed, the subject of today's post will center around the large influx of immigrants to the United States in recent years. Immigrants are individuals who come to live permanently in another country. As a U.S. citizen I and many others have heard our fair share of "anti-immigrant talk" from the government and even citizens. Before I go any further I would like to confess that when I thought of the words "illegal immigrants," the first thing that popped into my mind were Hispanics. I and many others should realize that any person who comes to the United States without the proper paperwork can be considered an "Illegal Immigrant." Polish, Italians, South Africans, Australians, Chinese, Columbians, etc., can all be considered illegal immigrants if they do not have the proper paperwork. I think it is also important to note that the reason 'illegal immigrants' is thought to be synonymous with 'Hispanics' is because the border between the United States and Mexico is not as secure as it should be and many Hispanics may find it easier to sneak into the U.S. instead of doing it legally. I'm not sure the process of sneaking into the U.S. is as easy for say, a Haitian.
Why?
Although the idea of illegal immigrants in the U.S. is typically thought of in a negative light, there are many people who like to take advantage of these individuals. By this, I mean business owners take advantage of the circumstances that an illegal immigrant may be in and they may offer the person a job, but at a significantly lower rate of pay than they would pay a U.S. citizen. This is definitely a form of discrimination. Although most illegal immigrants are probably offered much less than the "documented workers," they remain some of the hardest working individuals. They pay taxes (or they should) and they help stimulate the economy by making purchases just like we do. On the other hand, illegal immigrants do not have access to public housing, social security, food stamps, welfare, prenatal care, etc. Yet they still pay into the pool of money used to fund the different governmental programs. Doesn't that seem a bit unfair? The point I want to make is that illegal immigrants are also getting the short end of the stick when it comes to obtaining financial assistance from the government. They get paid the lowest wages imaginable. They pay taxes. They pay the same prices for goods that we do. They go through the same health issues that we do, but yet they don't get any of the benefits that we do. That's sad.
What is being done?
There are the immigration laws and reform bills passed to strengthen our choke hold on immigration. There is talk that we should welcome immigrants with open arms. There is talk that we should do a massive raid and ship them all home. The point here is that although the United States government sees illegal immigration as a problem there is no definite plan about how to go about rectifying the issue.
What should be done?
I'm really unsure about what should be done about illegal immigration. I think it's hard to really address an issue if it hasn't directly affected you yet (I don't think it has?). Anyways, I tend to take a "Let's love and be nice to everybody," standpoint when it comes to situations regarding different groups of people (illegal vs. legal). I have a strong belief that people should be able to travel the world and live wherever they please, but I guess that could be easily done if the correct steps are followed to obtain documents. The illegal immigration topic is a hard one to tackle.

--It was nice working with you all this semester and thanks for all of the comments!!!

Poverty, Housing, and Community Development

Who?
Well, once again it seems that low income individuals are getting the short end of the stick. Not only do low income individuals have access to the lowest standard housing, but most individuals benefiting from public housing are also racial or ethnic minorities, too. The statistics of Atlantans living in critical housing conditions is worse. In fact, many of those in critical housing are single mothers, earn less than 50% of median income, and put more than 50% of their income to housing payments. For those that don't know, it is suggested that one put no more than 30% of annual income towards housing needs and contributing anything above 30% would mean that the family is more than likely going without basic necessities, such as food. The children of low income individuals tend to suffer, as well. Children living in low poverty neighborhoods tend to get involved in violent activities less often than those who live in high poverty neighborhoods.

Why?
The answer to this question is quite simple. Housing affordability has decreased over the last three decades, but the working class individuals incomes' aren't enough to meet basic housing needs (30% rule). As stated earlier, a working class individual may find a home to live in, but more than likely they are paying more than 50% of income on housing.

What is being done?
There are many programs in place to help reduce the amount of concentrated poverty stricken areas in the United States. The government offers public housing and vouchers, both designed to supplement the individuals income to pay for housing. Housing vouchers seem to be the most helpful in reducing concentrated poverty areas, because they give individuals the opportunity to move to low-poverty, low-minority neighborhoods where there is wide range of incomes. Those who live in public housing are more likely to live in high-poverty, high-minority areas because of the high concentration of poverty stricken individuals in one area (obviously). The housing act of 1937 was the initial aim at eradicating slums, providing sanitary housing, and decreasing unemployment. Since then The Housing and Community Development Act of 1974, The Community Development Block Grant, The Home Mortgage Disclosure Act (1976), The Community Reinvestment Act, and The Cranston-Gonzalez National Affordable Housing Act of 1990 have all been implemented to help, in one way or another, eradicate unsanitary housing, revitalize neighborhoods, and benefit low/moderate income families.

What Should Be Done?
As far as I am concerned, it seems like the government is taking the right steps to provide more affordable and low poverty housing neighborhoods for those in the low/moderate income bracket.

Social Security and Poverty

For the sake of this post I will be addressing the 'What is being done' and 'What should be done'


What is being done??
Established in 1935, the Social Security Act was put in place to develop programs aimed to alleviate fiscal problems during unemployment, retirement, or death of the breadwinner of the family. The Old-age, Survivors, and Disability Insurance program (OASDI) is commonly known as "Social Security." One may begin receiving social security once he or she has reached retirement age, the breadwinner of the family has died, or one that has worked at least 40 quarters (10 years) and has recently become unemployed may also begin receiving benefits. This system has proven to be flawed, as now there are far too many retirees and too few workers paying into the fund. Now, we (the working class) face the possibility that we may never see any of the money when we retire. There are many ideas floating around about how we can reform social security to make it withstand such 'wear and tear,' but we have yet to agree on one solution to implement. Some suggest that we raise the cap on salary to make those who earn more than $97, 500 pay more into the fund (larger percentage). Others think we should  raise the payroll tax for everyone. In 2009, President Barack Obama signed into law the Recovery Act of 2009 which was implemented to help stimulate job growth and the economy. The act included the Issuing of a one-time payment of $250 to social security beneficiaries.

What Should be Done?
Although i think i would not be very helpful in the 'coming up with a solution' portion of addressing the fiscal problems of social security, I do agree that something has to be done to make SSI more durable and dependable for future generations. However, I do disagree with those that think SSI benefits should be decreased. I think it would be unfair to us when we retire, as well as those who have worked so very hard to get to retirement. That is not the way to go, for sure.

Poverty and Health Care

Who?
Those who are struggling to make ends meet are least likely to obtain medical insurance and preventative care. In fact, Hispanics and African Americans make up a majority of the uninsured in the United States.  Children under 18 and in poverty are also least likely to have health insurance. Not only are Hispanics leading in the uninsured sector, but there is also a direct correlation between legal citizenship and health insurance. If one is a legal U.S. citizen they are more likely to have health insurance compared to a non-citizen. The finances of an impoverished individual are already stretched thin and adding yet another bill to the existing mountain of debt seems like suicide. I imagine that if i were an impoverished individual i wouldn't even consider buying health insurance, simply because of the "more important things" that i would need to pay for. Not only are the impoverished getting the short end of the stick, but even if one is a part-time worker, he/she is still less likely to have health insurance than, say, a full-time worker.
Why?
The theory of poverty appears to be a never-ending domino effect. First you're barely making ends meet, then you're unable to pay to get your transmission fixed. You end up losing your job and you don't have a way to make money because you don't have transportation. You live in the suburbs and there isn't any public transportation and, on top of that, you have to have to move into the worst neighborhood in the county to get subsidized housing. You chose not to pay your health insurance provider anymore because it is too costly, but soon after you become violently ill because of inadequate sanitation at your apartment complex. You go to the emergency room, but because you don't have health insurance you get stuck with a huge bill. You have no way to pay the bills you have already yet you're expected to come up with the money somehow. Unfortunately, this person will not be making it out of poverty any time soon if this cycle continues.
What is being done?
For the past few months there has been tons of buzz about President Obama's health care reform bill. The bill is a huge revision of the health care system in effect today. Some of the notable changes to health care would be: everyone will be required to purchase health insurance by 2014 (there are some exceptions), Medicaid will be expanded to include childless adults, uninsured and the self-employed will be able to purchase insurance through state-based exchanges with subsidies available to individuals and families with incomes between 133 percent and 400 percent of poverty level, those within 100-400% of the federal poverty level who want to purchase their own insurance will be given subsidies to do so, and insurance companies will no longer be able to deny individuals coverage because of preexisting conditions.
I think the health care reform bill is a very important thing that needs to happen. It would make a huge impact on the lives of many who aren't able to receive the needed health care because they don't have health insurance. I know there are fears that the United States' health care system will get even worse, but how much worse can our health care system actually get?? I think most Americans believe that since we pay more for health care our system is so  much better than that of, say Canada. The fact of the matter is that we are not number one in the world for "Best Health Care"; we're like in the 20s for life expectancy! I refuse to mention what number we are in overall health care (*cough* 37 *cough*)!! Anyways, I believe the health care bill would do more good than bad in the long run. Obama care is the way to go!

Policy Responses and the Effects on Poverty

Food Coupons

Why??
As stated in previous blog posts there are many reasons as to why people find themselves suffering with poverty; noting that one person's reason may be totally different from the next person's reason. After reading through this week's required readings I was stunned to realize how much damage the welfare reform did to the lives of many poverty stricken individuals. Let me first state that I had no previous knowledge of the requirements needed to apply for TANF (Temporary Assistance to Needy Families) before going to the NCCP website. It is my understanding that immediately after the welfare reform bill was passed in 1996, hundreds of thousands of poverty stricken individuals were thrown off the rolls of welfare and forced to find low-paying jobs. During the first few years the initial leavers were thought of as a successful bunch because many had found jobs and there was less dependency on welfare. After the year 2000, many welfare leavers found difficulties in finding jobs and suffered more than they were prior to leaving, or  rather, being forced off of welfare. It is quite interesting to think that a welfare reform bill that was designed to help the poor has, in turn, done more bad than good. For instance, a woman named Angela Jobe was featured in a book titled American Dream by Jason DeParle, which tells of the lives of three women and their children during transition from welfare to work. While on welfare, Ms. Jobe's income was approximately 21k/year. After she found a low-paying job as a nurse's aide and was no longer receiving welfare her income skyrocketed to 25k/year (sarcasm). In a video segment, Angela Jobe was asked if she was more in debt now (after welfare) than she was before (on welfare) and she replied 'yes'. That simple 'yes' spoke volumes to me because I can imagine that, although making 4k more per year, her overhead has probably increased too. The goal of welfare reform was to reduce dependency and lift people out of poverty, but the opposite has occurred. It seems, to me, that if there was a genuine concern to lift our neighbors out of poverty the government would focus more on individual needs of the people rather than the general consensus that welfare dependency should be reduced. I think we could all agree that welfare is abused by some, but I think we could also agree that it's helped millions of people during hardships.
What is being done??
The welfare reform replaced old forms of welfare with TANF. The goals of TANF are to assist needy families, reduce dependency (by promoting job preparation, work, marriage), reduce out of wedlock pregnancies, and encourage two parent households. The first few years after the welfare reform law was in place the results seemed promising, but as the early 2000s came and went the results were far less promising than originally thought. Besides TANF, the EITC (earned income tax credit) is also in place and seems to be more beneficial to needy families than TANF. Food stamps are also a way for the federal government to subsidize needy families.
What should be done??
Although a portion of this section is addressed in the why, I will further address the issue here. After reading through former president Bill Clinton's proposals for the welfare reform law, I think his bill would have done a much better job at successfully pulling people out of poverty as well as KEEPING them there. His proposal definitely catered to the fact that everybody's situation is different and not everyone is going to be able to get certain things done in a specified amount of time. I would like to see another welfare reform law be passed that will incorporate the customization of welfare-to-work plans so that they better fit the needs of each and every individual.

POVERTY AND WAGES

She may be struggling more than you and I could ever imagine.

For the sake of this week's class session, I think it's most appropriate to update the Why? What is being done? and What should be done?
Why??
This week's session was immensely helpful in explaining the reasons why many people remain in poverty. Just for clarification, I would like to remind you all that poverty does not mean someone is homeless or unemployed. A person in poverty can be a full-time worker and continue to remain there, because of low wages. While reading through notes, I was dumb-founded to realize that there were two types of minimum wage; State and Federal. Prior to this point, I was under the impression that everyone with a job was making at least $7.25/hour (with the exception of tipped workers). The Georgia minimum wage is still at $5.15/hr which is $2.10 lower than the federal minimum wage. This means that thousands of full-time Georgia employees are working their tails off for approximately $10,000/ year. Ten-thousand dollars per year will barely cover rent of a $900/month apartment, so how does the government of georgia expect individuals to survive?? Although Georgia's minimum wage is embarrassing, the situation for tip workers is even more deplorable. As an ex-waitress of a fairly decent restaurant, I know first hand how bad things can get when business is slow around the restaurant. Relying on tips to complement the hefty $2.13/hour wage of tip workers is not a reliable way of making money. The fact that a great deal of georgians are being forced to work two or three jobs just to make ends meet is not acceptable in my opinion. Let's look at it this way, after a single mother of two finishes her two shifts per day, how much time is she going to be able to spend with her children reading, cooking meals, or just spending quality time?? I would be entirely surprised if she gets to see them for 30 minutes each day before bed time; and we wonder why children are dropping out of school, selling drugs, and stealing. Low wages keep the cycle of poverty going, but if wages were increased by a few dollars I would bet my bottom dollar that poverty would decrease along with the percentage of illicit activities. It's just a thought.

What is being done? and What should be done?
Unfortunately, many employees of Georgia are still fighting for the state government to raise its minimum wage at least $2.10/hour. This would allow Georgia's minimum wage to rise to $7.25/hour which would award a full-time employee with a whopping wage of $14,000/year. Although $14,000/year isn't nearly enough money to take care of basic expenses, it's a little better than making $10,000/year. If this does happen, people might actually make a little slot labeled 'Food' in their monthly budget (I'm being very sarcastic). There is also a Living Wage Movement that seeks to encourage the government to pass legislation so that the minimum wage will be a large enough figure that full-time workers will only need to work one job to pay for basic necessities. The ideal Living Wage Rate would be at least $10.50/ hour if health insurance was provided, and if not then $11.75/hour should suffice. This would help an individual make at least $22,000/year which would greatly decrease many of the problems associated with low-wage compensation. The effort being placed into raising minimum wage is exactly what we need. Not only would raising minimum wage stimulate the economy, but our friends and family will be able to better support themselves if they made more money. Those requiring less help from the federal government means less money out of tax-payers pockets (this is a good thing!).

The Economics of Poverty

The Struggles of Parenting in Poverty

After a rather interesting week of finding a job and producing a theoretical budget for a single mother with two kids, I have gained an immense amount of respect for those that can actually make ends meet. For the sake of this week's class session, I will only update the why?, what is being done?, and what should be done?, as those are the three that apply to the topics discussed this week.

WHY?

Despite what I have said in previous posts about the various reasons people come to be impoverished, I would like to change my perspective once more. As I was studying for this week's class, I ran across  a chart that lists fifteen different reasons why a person(s) may be in poverty. For example: Immigration status, access to public benefits, and culture shock are just a few of the many plausible reasons. I think i made a huge mistake by taking on the responsibility of listing one-by-one the possible causes of poverty. From now on, whenever I am asked the question, "Why are people in poverty?" my response will be "there are too many reasons to list, furthermore each individuals situation is unique and their reason for being poor may be totally different compared to the next persons' reason." 

As stated earlier, a few of my classmates and I were assigned the task of finding a job for a single mother with two children. She was a high school graduate, but possessed no specific work skills. We eventually found an entry level position at a bank. Her salary was roughly $19,000 dollars after taxes. After we did research and made a budget for the woman, we realized that she would need to make double the amount of money to make ends meet. In the end, I believe there were two problems 1) the job chosen for the woman did not pay enough and 2) the budget we prepared for the woman was a bit too expensive. I believe if the task of the project was to make the budget work, we could have made some huge decreases in spending, but that wasn't the case. The point I am trying to make is that there may be individuals that are not taking the appropriate steps to reduce the amount of overhead that they are responsible for paying, as well as taking advantage of government programs aimed at alleviating poverty. In addition, the theoretical situation of the single mother with two kids fits perfectly with the Neoclassical Economic Theory which states, "individual traits, such as family background, education, human, social, and cultural capital effect economic well-being (Iceland, 2003)" Although we weren't given very much information about the woman's family background, she did lack in the education department as well as in the human capital department (knowledge, skills, training and education). 

I also I think some truth lies in the Structural Economic Theory of Poverty as well. This specific theory, "emphasizes the impact of economic, social, and political systems on poverty (Iceland,2003)."

WHAT IS BEING DONE?

As stated in previous updates, the government has a number of programs in place that aim to alleviate poverty. I forgot to mention President Obama's health care bill which aims to make health care universal by the year 2014. I think it's a great idea to spread the availability of doctors and nurses to those that are not able to afford health coverage. The only downside is I worry about how the quality of health care will change, which I'm sure it will. I guess the bill has a few positive and negative areas, but overall I think it's a step in the right direction. I try to take a moment to think about how I would feel about these sort of things if i were the impoverished individual.

WHAT SHOULD BE DONE?

After watching a poverty simulation video clip, I am now aware that a great deal of those working at government agencies are suffering through the same situations as those they are working to help. In one scene, a long line of unemployed individuals were waiting to be helped with paperwork. There were three available employees, but only one was actually assisting customers, the other two were talking to each other AS IF there wasn't a long line of people standing in front of them! I was even more chocked to find out that what happened in the poverty simulation is exactly what happens to those in real life. After analyzing the situation more, I realized a family friend of mine is in the same position; she works at the IRS, has two kids, and struggles each month to pay the bills. The shocking part is she's a college graduate, but she's still not making enough money to live comfortably. The point I am trying to make is how can the government expect people in need to get the help they deserve when employees are suffering just as much as those they are supposed to be helping?? That doesn't seem fair at all- to either party. The government needs to improve the benefits and salaries of it's workers before we can expect those in need to get the attention that they deserve.

RANDOM

Did anybody else have an "ah-ha" moment when the people participating in the poverty simulation raised their hands when asked if they'd engaged in illegal activities to pay their rent? 

--I'll be honest, for years I was under the impression that those in underprivileged communities were involved in crime just because they thought it was fun or there was nothing else to do. I now understand that there are some people selling drugs, stealing, and prostituting because that's the only way they can guarantee their lights won't be off or they won't be evicted. I completely understand now.