Transcript “The Other America” Revisited

“The Other America”
Revisited
The War on Poverty:
Gains and Losses
By Marie Michael
Slide Show by Travis Kooima
Michael Harrington
“One cannot raise the bottom of society
without benefiting everyone above.”
Ideas led to food stamps, Medicaid,
Medicare, and social security benefits.
Led to Lyndon B. Johnson’s War on
Poverty campaign and push for legislation
and social services aimed at reducing and
eliminating poverty in the U.S.
Poverty
1960’s more than half of African Americans lived
in Poverty.
Huge decline in 60’s during civil rights
movement & War on Poverty.
During early 70’s fell to ultimate low of 11.1%.
Poverty continued to rise after 1979 until 1995,
when a modest decrease began.
As of 2003 Poverty level is at 12.5%
http://www.census.gov/hhes/poverty/histpov/hstpov2.html
Median Household Income
Median Household income as of 2003 is a
little over $43,000.
This is up about $3,000 compared to
1999.
President Clinton, in 1999, stated after this
finding that, “Every income group is seeing
economic growth, with the greatest gains,
in percentage terms, by the hardest
pressed Americans.
Question?
What do these
numbers mean?
Even though the
percentages are
showing a positive
increase, are we
really benefiting and
economically
growing?
?
Looking into the Numbers
Although income is up 5.4% in the lower and
middle class their income has only gone up
$513.00 between 1998-1999.
In Contrast, the richest 20% have shown a gain
of $5,055.00. Nearly 10 times as much of a gain
compared to the lower and middle class.
Between 1973-2001, the poorest 20% gained
only 14% more income while the riches 5%
gained 86.7% more income.
Income of poor & middle class vs. rich households, in 2001
dollars, 1967-2001. Left Business Observer
103(December 2002)
Richest 5%
Middle & Poorest 20%
300000
250000
200000
150000
100000
50000
0
1967
1975
1983
1991
1999
Actual Poverty Rate
Huge decline in 60’s during civil rights
movement & War on Poverty.
During early 70’s fell to ultimate low of
11.1%.
Poverty continued to rise after 1979 until
1995, when a modest decrease began.
Full-time Workers
Income has become more polarized
– More and more difference between upper and
middle to lower class
The so called “New Economy,” according
to the author, is only helping the upper
class.
Poverty Threshold
Dollar amounts used to determine poverty
status.
Vary according to size of the family and
ages of the members.
Updated annually for inflation using the
Consumer Price Index for All Urban
Consumers.
Computing Poverty
If total family income is less than the
threshold appropriate for that family then:
– Family is in poverty
– All family members have same poverty status
If total family income equals or is greater
than the threshold, the family (or unrelated
individual) is not in poverty
Example Case
Family A has five members: two children,
their mother, father, and great-aunt.
– Their threshold is $22,509 in 2003
– Suppose their income in 2003 is:
Mother - $10,000
Father - $5,000
Great-Aunt - $10,000
First and Second child - $0
Total Family income = $25,000
Now we compare their income with their
threshold. Consider the following formula:
Income / Threshold = Ratio of Income to Poverty
So consider our example:
– $25,000 / $22,509 = 1.11
– Since their income is greater then the threshold, Family
A is not in poverty.
– When the Ratio of income to poverty is positive it is
considered a Income Surplus, or total amount made
over their threshold, in this case $2,491. If it would
happen to be negative, it would be an income deficit,
and the family would be considered in poverty.
Facts about Poverty
Half the world -- nearly three billion people -- live
on less than two dollars a day.
The GDP (Gross Domestic Product) of the
poorest 48 nations (i.e. a quarter of the world's
countries) is less than the wealth of the world's
three richest people combined.
Nearly a billion people entered the 21st century
unable to read a book or sign their names.
Less than one per cent of what the world spent
every year on weapons was needed to put every
child into school by the year 2000 and yet it
didn't happen.
– http://www.globalissues.org/TradeRelated/Poverty.asp