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Increase in "welfare" for American wealthy while American poverty rises.

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  • Increase in "welfare" for American wealthy while American poverty rises.

    Rise in American poverty.

    As the roster of corporations and financial institutions on line for government bailouts seems to grow, some public policy advocates in Washington D.C. are calling on policymakers to focus more efforts on the nation's poorest. The ranks of the destitute are growing quietly but alarmingly as much of the world focuses on troubles surrounding Wall Street. "Recent data show poverty is already rising quite substantially," says Robert Greenstein, the executive director of the Center on Budget and Policy Priorities. "There is a strong potential for more hardship and destitution than we have seen in this country in a number of decades."


    Greenstein's center released a new study on Monday projecting a sharp rise in the number of people living below the poverty line, which is roughly $21,200 annually for a family of four according to Department of Health and Human Services. An estimated 36.5 million Americans currently live below the poverty line, but those numbers will likely increase by as many as 10.3 million if current projections for the depth and duration of the recession hold true. According to the center's analysis, the number of poor children will grow by as many as 3.3 million. And the number of children in deep poverty, those in families living on less than half the wages of the official poverty line, will climb by as many as 2 million. (See pictures from John Edwards' tour of poverty-stricken America.)


    Signs of the recession's impact on America's impoverished are increasingly apparent, Greenstein said, pointing to a dramatic rise in food stamp caseloads in recent months. The number of people using food stamps has risen 9.6%, or roughly 2.6 million people, between August 2007 and August 2008, the last period for which data are available. Food banks around the country are reporting longer lines even as donations are falling.


    By historical comparison, the expected rise in the number of impoverished in this recession is relatively normal. During the recession years of the 1980s, the number of people in poverty rose by 9.2 million, an increase of more than a third. The recession of the 1990s was not quite as deep but still increased the number of people in poverty by 6.5 million. But those falling into poverty now face harder prospects and need more government help, Greenstein says, because many social safety nets have been cut away since the last economic downturns. (See pictures of the recession of 1958.)


    A number of policy changes at both state and federal levels have left basic cash assistance programs scarce, the center's study argues. State general assistance programs were largely eliminated across the country in the late 1980s and early 1990s, except for programs benefiting the disabled. On the federal level, only about 40% of families eligible for cash assistance under the Temporary Assistance for Needy Families program actually receive it. That is about half the percentage of families eligible for the program's predecessor (the Aid to Families with Dependent Children program) that received its benefits during the recessions of earlier decades.


    President-elect Barack Obama voiced new concern over the economy Monday when announcing picks for his White House economic team, saying a new economic stimulus package was needed right away in addition to the ongoing efforts to pump more than $700 billion in federal rescue funds into ailing business like Citigroup. There was no indication how any of that round of spending will reach the growing numbers of nation's neediest.
    Almost 37 million Americans live in poverty. But I don't know if that number refers to just families of four who earn $21,000 or less as mentioned in the article, or if this number refers to everyone, including single individuals.

    So while we bail out wealthy CEOs what can we do to for the truly impoverished? At the local community level? And at all levels of government?

    Community charity really does not help decrease the number of impoverished, as far as I understand. They usually simply provide the necessities (food, cloth, substandard shelters) so that they do not die from exposure or starvation. What local community programs actively pulls people out of poverty and onto the path to a better quality of life and an independent one?
    A lot of Republicans are not racist, but a lot of racists are Republican.

  • #2
    Almost 37 million Americans live in poverty. But I don't know if that number refers to just families of four who earn $21,000 or less as mentioned in the article, or if this number refers to everyone, including single individuals.
    What, you think there are 148 million people below the poverty line? I think it is obvious as to what they meant.

    So while we bail out wealthy CEOs what can we do to for the truly impoverished? At the local community level? And at all levels of government?
    Yeah, lets let the entities that employ god knows how many people from all brackets just collapse. Then all those unempoyed people will at least know they got to stick it to the man!

    Big picture Mr. Fun. I am an anti-bailout guy, but to maintain that these bailouts are only helping those at the top is patently ridiculous.
    "The DPRK is still in a state of war with the U.S. It's called a black out." - Che explaining why orbital nightime pictures of NK show few lights. Seriously.

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    • #3
      True, the fact that these employers are being bailed out is also helping employees retain their jobs is at least one good thing coming out of this.

      And I didn't realize that had the 36 million number would NOT be including single people that it would increase it so drastically up to 148 million.

      But you really haven't addressed the questions I have in my OP.
      A lot of Republicans are not racist, but a lot of racists are Republican.

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      • #4
        people in poverty have it pretty good. poverty isn't like the old days where they struggled to find money to pay for food. Now days it's just that they struggle to find money for drugs.

        Don't get me wrong, I'm not a big supporter of wage disparities. Wage disparities are the primary contributor to recessions/depressions in my opinion.

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        • #5
          But you really haven't addressed the questions I have in my OP.
          All the entities you summarily dismissed for no good reason.

          + any number of private scholarship funds out there.
          "The DPRK is still in a state of war with the U.S. It's called a black out." - Che explaining why orbital nightime pictures of NK show few lights. Seriously.

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          • #6
            Two types of people benefit in this country: those who have a lot and those who have not. Those caught in the middle usually get fleeced.

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            • #7
              Originally posted by One_more_turn
              Two types of people benefit in this country: those who have a lot and those who have not. Those caught in the middle usually get fleeced.
              You sound like Daily Express.
              Graffiti in a public toilet
              Do not require skill or wit
              Among the **** we all are poets
              Among the poets we are ****.

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              • #8
                Originally posted by Patroklos


                All the entities you summarily dismissed for no good reason.

                + any number of private scholarship funds out there.
                Dismiss? The charity programs I referred to keep people from dying from starvation and exposure from extreme elements. We need those programs.

                But we also need active programs that seek to pull people out of poverty into employment/better employment. How does Habitat for Humanity work? As far as I undersand, Habitat for Humanity seems to one good example of how they pull people out of worse living conditions into better living conditions. Another one I have thought of are employment assistance programs - one I'm familiar with from my state is Iowa Vocational Rehabilitation.
                A lot of Republicans are not racist, but a lot of racists are Republican.

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                • #9
                  Originally posted by Patroklos
                  Yeah, lets let the entities that employ god knows how many people from all brackets just collapse. Then all those unempoyed people will at least know they got to stick it to the man!
                  The major purported benefit of the bailouts we've seen so far (NOT of firms like GM etc) is not that their employees get to keep their jobs but that the credit system as a whole does not crash. The fear is that many or most major institutions are drastically undercapitalized (not necessarily insolvent!) and that these institutions cannot attract sufficient private capital to stay open (due to excess risk aversion). The "Bernanke thesis" has always been that the major cause of the severity of the Great Depression was the failure of much of the US credit system (banks et al) leading to an enormous decrease of the money supply/deflation. Even if additional capital enters the banking sector AFTER failures, the knowledge/organization capital of the banks as institutions has been lost and credit allocation is much less efficient until the new institutions develop their own (which takes a lot of time).
                  12-17-10 Mohamed Bouazizi NEVER FORGET
                  Stadtluft Macht Frei
                  Killing it is the new killing it
                  Ultima Ratio Regum

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                  • #10
                    Habitat for Humanity, for whom I am a regular volunteer, does exactly what you say it does. Your problem is that any number of church/school/philantropic societies do exactly the same work in addition to their soup kitchens/food drives/clothing drives.

                    I also volunteer for the local food bank, and the idea that it is mearly homeless people avoiding starvation that use them is wrong. In reality they are for the most part helping out families fallen on hard times, and that support may in fact be what keeps them going long enough for that job opportunity to come along.
                    "The DPRK is still in a state of war with the U.S. It's called a black out." - Che explaining why orbital nightime pictures of NK show few lights. Seriously.

                    Comment


                    • #11
                      Originally posted by Patroklos
                      Habitat for Humanity.
                      The content of this post is quite impressive.
                      A lot of Republicans are not racist, but a lot of racists are Republican.

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                      • #12
                        You have been DanS'ed.
                        "The DPRK is still in a state of war with the U.S. It's called a black out." - Che explaining why orbital nightime pictures of NK show few lights. Seriously.

                        Comment


                        • #13
                          It looks like I have! You bastard.
                          A lot of Republicans are not racist, but a lot of racists are Republican.

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                          • #14
                            Originally posted by Patroklos
                            I also volunteer for the local food bank, and the idea that it is mearly homeless people avoiding starvation that use them is wrong. In reality they are for the most part helping out families fallen on hard times, and that support may in fact be what keeps them going long enough for that job opportunity to come along.
                            I understood that it's not just the homeless who use the food banks and kitchens.

                            The MCC back in Iowa, where I moved from, was involved every month with a program called Feed the Hungry.
                            A lot of Republicans are not racist, but a lot of racists are Republican.

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                            • #15
                              Originally posted by KrazyHorse


                              The major purported benefit of the bailouts we've seen so far (NOT of firms like GM etc) is not that their employees get to keep their jobs but that the credit system as a whole does not crash. The fear is that many or most major institutions are drastically undercapitalized (not necessarily insolvent!) and that these institutions cannot attract sufficient private capital to stay open (due to excess risk aversion). The "Bernanke thesis" has always been that the major cause of the severity of the Great Depression was the failure of much of the US credit system (banks et al) leading to an enormous decrease of the money supply/deflation. Even if additional capital enters the banking sector AFTER failures, the knowledge/organization capital of the banks as institutions has been lost and credit allocation is much less efficient until the new institutions develop their own (which takes a lot of time).
                              Interesting points here.
                              A lot of Republicans are not racist, but a lot of racists are Republican.

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