Tag Archives: Government

How much wealth do the poor in America have?

A new paper from the Heritage Foundation. (H/T Brett Kunkle)

Excerpt:

Each year for the past two decades, the U.S. Census Bureau has reported that over 30 million Americans were living in “poverty.” In recent years, the Census has reported that one in seven Americans are poor. But what does it mean to be “poor” in America? How poor are America’s poor?

For most Americans, the word “poverty” suggests destitution: an inability to provide a family with nutritious food, clothing, and reasonable shelter. For example, the Poverty Pulse poll taken by the Catholic Campaign for Human Development asked the general public: “How would you describe being poor in the U.S.?” The overwhelming majority of responses focused on homelessness, hunger or not being able to eat properly, and not being able to meet basic needs.[1] That perception is bolstered by news stories about poverty that routinely feature homelessness and hunger.

Yet if poverty means lacking nutritious food, adequate warm housing, and clothing for a family, relatively few of the more than 30 million people identified as being “in poverty” by the Census Bureau could be characterized as poor.[2] While material hardship definitely exists in the United States, it is restricted in scope and severity. The average poor person, as defined by the government, has a living standard far higher than the public imagines.

As scholar James Q. Wilson has stated, “The poorest Americans today live a better life than all but the richest persons a hundred years ago.”[3] In 2005, the typical household defined as poor by the government had a car and air conditioning. For entertainment, the household had two color televisions, cable or satellite TV, a DVD player, and a VCR. If there were children, especially boys, in the home, the family had a game system, such as an Xbox or a PlayStation.[4] In the kitchen, the household had a refrigerator, an oven and stove, and a microwave. Other household conveniences included a clothes washer, clothes dryer, ceiling fans, a cordless phone, and a coffee maker.

The home of the typical poor family was not overcrowded and was in good repair. In fact, the typical poor American had more living space than the average European. The typical poor American family was also able to obtain medical care when needed. By its own report, the typical family was not hungry and had sufficient funds during the past year to meet all essential needs.

Poor families certainly struggle to make ends meet, but in most cases, they are struggling to pay for air conditioning and the cable TV bill as well as to put food on the table. Their living standards are far different from the images of dire deprivation promoted by activists and the mainstream media.

Regrettably, annual Census reports not only exaggerate current poverty, but also suggest that the number of poor persons[5] and their living conditions have remained virtually unchanged for four decades or more. In reality, the living conditions of poor Americans have shown significant improvement over time.

These are the people that the elites on the left are constantly making us feel guilty about. But keep in mind that it is very easy to avoid poverty in America. A person just has to make four decisions, as economist Walter Williams explains.

Excerpt:

Avoiding long-term poverty is not rocket science. First, graduate from high school. Second, get married before you have children, and stay married. Third, work at any kind of job, even one that starts out paying the minimum wage. And, finally, avoid engaging in criminal behavior.

If you graduate from high school today with a B or C average, in most places in our country there’s a low-cost or financially assisted post-high-school education program available to increase your skills.

Most jobs start with wages higher than the minimum wage, which is currently $5.15. A man and his wife, even earning the minimum wage, would earn $21,000 annually. According to the Bureau of Census, in 2003, the poverty threshold for one person was $9,393, for a two-person household it was $12,015, and for a family of four it was $18,810. Taking a minimum-wage job is no great shakes, but it produces an income higher than the Bureau of Census’ poverty threshold. Plus, having a job in the first place increases one’s prospects for a better job.

The Children’s Defense Fund and civil rights organizations frequently whine about the number of black children living in poverty. In 1999, the Bureau of the Census reported that 33.1 percent of black children lived in poverty compared with 13.5 percent of white children. It turns out that race per se has little to do with the difference. Instead, it’s welfare and single parenthood. When black children are compared to white children living in identical circumstances, mainly in a two-parent household, both children will have the same probability of being poor.

How much does racial discrimination explain? So far as black poverty is concerned, I’d say little or nothing, which is not to say that every vestige of racial discrimination has been eliminated. But let’s pose a few questions. Is it racial discrimination that stops black students from studying and completing high school? Is it racial discrimination that’s responsible for the 68 percent illegitimacy rate among blacks?

The 1999 Bureau of Census report might raise another racial discrimination question. Among black households that included a married couple, over 50 percent were middle class earning above $50,000, and 26 percent earned more than $75,000. How in the world did these black families manage not to be poor? Did America’s racists cut them some slack?

In America, poverty is self-inflicted. But that doesn’t mean that the Democrats don’t help the poor to stay poor.

Democrats wants to raise minimum wage, which promotes higher unemployment among younger workers – and more dependence on government programs. They want to subsidize single motherhood and enact no-fault divorce laws, to destroy marriage. And they want to push gay history and green propaganda in the public schools, to diminish the economic value of a high school education. They don’t want the poor to lift themselves out of poverty so that they are independent of government. Redistribution of wealth makes Democrats feel good about themselves – so they need the poor to stay poor. Democrats take money from the wealthy, causing them not to hire workers, and then give that money to the poor, so that they don’t need to work for anything.

Would the Republican “cut, cap and balance” plan solve the debt crisis?

Let’s take a look at the Republican “Cut, Cap and Balance” plan, as reported by CBS News.

Excerpt:

The House next week will take a vote to raise the debt ceiling and pass a balanced budget amendment, House Republican leaders said today.

The plan is unlikely to go anywhere, since a balanced budget amendment would likely fail in the Democrat-led Senate, but GOP leaders nevertheless called it a serious plan to raise the debt ceiling. They said President Obama and Democrats have failed to come up with an equally serious plan.

“We asked the president to lead,” House Speaker John Boehner said in a press conference today. “We asked him to put forward a plan — not a speech, a real plan — and he hasn’t. We will.”

The “cut, cap and balance” proposal would make raising the debt ceiling contingent on Congress sending a balanced budget amendment to the states. It would also cap government spending at 18 percent of Gross Domestic Product over the next 10 years.

The plan would raise the debt ceiling by $2.4 trillion, since that is the increase requested by the president. However, the plan would actually make even more in spending cuts — as much as $111 billion in 2012 alone.

[…]Boehner said the House would vote on the “cut, cap and balance” plan and then decide how to proceed from there.”I don’t want to preclude any chance of coming to an agreement, but [Democrats have] been unwilling to put a real plan on the table,” Boehner said. “Without serious spending cuts or real reform to entitlement programs, this problem is not going to be solved.”

That’s what the Republicans would do if they were in control. The balanced budget amendment would cap spending at 18% of GDP, so that we would never have a debt crisis ever again. That’s the right solution, except that the Democrats cannot give up the idea of buying votes with the money they steal from job creators. They just can control their addiction to spending.

Now, let’s take a look at who caused the debt crisis, with this House Budget Committee article by fiscal hawk Paul Ryan. (H/T Washington Post)

Excerpt:

While President Obama has recently professed a newfound — and vague — desire to cut government spending, it’s useful to recall what the President has actually done since taking office in 2009. The President signed into law a massive spending spree that plunged us deeper into debt, and failed to deliver on its promise to create jobs.

  • 24% Increase in Base Spending. Non-defense discretionary spending grew by 24% for the first two years of the Obama Administration, adding $734 billion in spending over the next 10 years.
  • Record Government Spending. The Federal government will spend $3.6 trillion this year, 24% of gross domestic product (GDP) and the highest burden on the economy since World War II. Spending has historically averaged a little over 20% of GDP.
  • President’s Budget Makes Matter Worse. According to CBO, the President’s budget never spends less than 23% of GDP and by the end of the decade rises to 24% of GDP. His budget’s failure to address the drivers of our debt threatens the health and retirement security of America’s seniors, and the economic security of all Americans. The President’s budget seeks to spend $46 trillion in government spending over the next decade, and has subsequently fought against House Republican efforts to restrain his spending appetite down to $43.5 trillion.

During the four years when Nancy Pelosi was the Speaker of the House, and Harry Reid was in control of the Senate, the Democrats packed 5.34 trillion dollars onto the national debt.

Peter Hitchens distinguishes the deserving and undeserving poor

An article by Christopher Hitchens’ brother Peter in the UK Daily Mail. (H/T Scrubone)

Excerpt:

Here beginneth the first lesson: In St Paul’s first epistle to Timothy, Chapter 5, we read: ‘If any provide not for his own, and specially for those of his own house, he hath denied the faith, and is worse than an infidel.’

And in his second epistle to the Thessalonians, St Paul rubs it in, in that way he has: ‘This we commanded you, that if any would not work, neither should he eat.’

This seems pretty clear to me, and a dozen generations before my own knew these words by heart and lived according to them. They gave to charity and supported the helpless and needy with all their might.

But they scorned those who sought to live off others when they had no need to.

[…]I don’t mind bishops intervening in our national life. That’s what they are for. I like having them in the House of Lords to remind us of the foundations on which our country stands. But they are not there to act as reinforcements for the Liberal Democrats. They are there to remind us that we are at heart a Christian nation and people.

They should stand up for lifelong marriage, denounce the lax treatment of wrongdoers and the neglect of their victims, condemn public drunkenness, defend unborn babies against those who wish to kill them, stand in the way of stupid and unjust wars, and of selfish cruelty of all kinds. But they really have to get out of their heads the idea that the Welfare State must be unconditionally defended.

For it is the hard-working poor who pay for it, and who see their near neighbours living lives of shameless idleness on their money. And they also watch criminals profiting by their crimes, and getting away with it.

If the parsons, pastors, priests and bishops of this country took the side of the poor against these parasites, instead of acting as their spokesmen, they might find their churches filling up again.

But as long as they talk like the TUC, they will stay at the fringe of our national life.

He’s actually replying to the lame apostate Archbishop Rowan Williams. If you want a real Archbishop, try His Grace Archbishop Cranmer.

Here’s a related lecture that Jay Richards did for the Family Research Council, on the topic of Christianity and Economics. It’s a very good lecture that discusses some basic economic principles and some common economics myths. You can also listen to the MP3 file, but it’s 60 megabytes.

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