Economic inequality

  • August 3, 2012

    by Jeremy Leaming

    As much as they claim to loathe government, right-wing policy makers adore government assistance to the nation’s superrich.

    The economic policies, including weakened regulation of the financial industry, pushed by a party that has become behold to the superrich ushered in the Great Recession and the gaping economic inequality that the nation seems to be slowly awakening. Yet likely not fast enough. The number in poverty is on track, The Associated Press reported in July, to reach “levels unseen in nearly half a century,” and wiping out gains to lessen poverty that were seen in the 1960s. These economic policies center on tax cuts for the wealthiest, dwindling social services, along with weak regulation of the financial industry.

    “The upper 1 percent of Americans are now taking in nearly a quarter of the nation’s income every year,” Columbia Business School Professor Joseph Stiglitz wrote last year. “In terms of wealth rather than income, the top 1 percent control 40 percent.”

    Stiglitz noted in the same article how woefully out touch the wealthiest are – they can take care of themselves just fine and are numb to the plight of a family of three that must somehow survive on an annual income of less than $38,000.

    So what can be done to reverse the situation? It appears rather hopeless, since the superrich are also the most powerful and have been able to keep alive the economic policies that have benefited them at a great cost to everyone else. During this year’s ACS National Convention Peter Edelman, a Georgetown University law school professor and longtime advocate for the nation’s most vulnerable said the shrinking middle class must become far more vocal in calling for an end to disastrous economic policies.

    In a recent op-ed for The New York Times, Edelman (pictured), also chair of the ACS Board, said we know “what we need to do – make the rich pay their fair share of running the country, raise the minimum wage, provide health care and a decent safety net, and the like”

  • July 25, 2012

    by Jeremy Leaming

    Right-wing activists and pundits are quick to bemoan discussion of the nation’s growing poverty, blasting discussion of economic inequality and poverty as an effort to stoke class warfare. It’s a refrain we’ve heard for decades.

    But studies, by the Census Bureau and others, show that not only is economic inequality real and festering, but poverty is growing, while the middle class shrinks.

    The Associated Press reported earlier this week that 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 a fraying government safety net.”

    The nation’s social safety net has been diminished by a Republican Party that has grown beholden to the superrich, and is devoted to the proposition as Tim Dickinson wrote for Rolling Stone that “the wealthy should grow wealthier still, whatever the consequences for the rest of us.”

    Of course moderate Democrats have also played a significant role in shredding the social safety net. The 1996 so-called welfare reform act took a major swipe at the social safety net.

    The AP surveying “more than a dozen economists, think tanks and academics,” found a “broad consensus that the “official poverty rate will rise from 15.1 percent in 2010, climbing as high as 15.7 percent. That level of poverty, the AP continued, will represent the highest level since 1965.

    In his new book So Rich, So Poor, Peter Edelman, a law professor at Georgetown University Law Center, laments the nation’s worn social safety net, writing that “the bottom has dropped out” of it. He said repairing the tattered social safety net is one of the most urgent challenges facing the country.

    Talking to the AP, Edelman (pictured), also chair of the ACS Board, said the challenges go beyond the weakened social safety net, noting the “deep problems in the economy.”

  • July 18, 2012

    by Jeremy Leaming

    To help states more effectively provide support to individuals while they seek employment, the Obama administration is allowing state officials to seek waivers of some requirements of the Temporary Assistance for Needy Families (TANF) program.

    But The New York Times reports the administration’s move has stirred consternation among some conservative lawmakers. In a letter to the Department of Health and Human Services, Sen. Orrin Hatch (R-Utah), complained that Congress did not intend for states to be provided “waivers of TANF work requirements.”

    In a July 12 statement, HHS Acting Assistant Secretary George Sheldon says the Social Security Act provides the department the “authority to grant states waivers of certain TANF provisions for the purpose of testing new approaches to meeting the goals of the TANF statute. The Secretary is interested in using her authority to allow states to test alternative and innovative strategies, policies, and procedures that are designed to improve employment outcomes for needy families.”

    The Times, however, notes that conservative lobbying groups, which have fought to eliminate a social safety net, primarily by supporting economic policy that starves government of revenue by slashing taxes on the nation’s wealthiest, are decrying the administration’s move as detrimental to a program that has allegedly “lifted millions out of poverty.”

    Such a claim is as bizarre as it is laughable.

    The number of people now in poverty is larger than at any time since the Great Depression. As many economists have noted the nation’s middle class is shrinking, poverty is growing, and the only people who are faring better are the superrich.

  • July 16, 2012

    by Jeremy Leaming

    Although it can be argued that the state governors threatening to forgo implementing the Affordable Care Act’s expansion of Medicaid have a skewed idea of state sovereignty, likely closer to the truth is that most of the governors are carrying on a tawdry tradition of denying help to the most vulnerable.

    S.C. Gov. Nikki Haley, Fla. Gov. Rick Scott, La. Gov. Bobby Jindal and Texas Gov. Rick Perry have all vowed that their states will not expand their Medicaid programs to millions of uninsured, even though pursuant to the ACA the federal government will cover most of the costs of implementing the expansion. The New York Times reports that the expansion of Medicaid would add “17 million people to the rolls, accounting for half of all uninsured people expected to gain coverage nationwide.”

    All those governors have offered typical, but disingenuous complaints that the federal government is forcing the states to spend money they don’t have. They also predictably paint the federal government as pushing wasteful domestic programs or offering more free things to people.

    It is the same tired, offensive and often racially tinged complaint that conservative politicians have been peddling for decades in their nonstop attack on government.

    Gov. Scott called the ACA’s Medicaid provision “a massive entitlement expansion,” and Gov. Rick Perry (pictured) who presides over a state with the largest number of uninsured said the Affordable Care Act “would make Texas “a mere appendage of the federal government.”

    University of Maryland School of Law professor Sherrilyn Ifill in an opinion piece for CNN said the governors are carrying on a long tradition of not doing a terribly good job of governing.

    “These elected leaders are following a longstanding tradition in American politics of Southern states acting against the best interest of their residents,” she writes.

  • July 11, 2012

    by Jeremy Leaming

    The right continues to wage a tiresome campaign against even modest efforts to repair the nation’s tattered social safety net.

    Although only symbolic, since it won’t go anywhere in the Senate, the House of Representatives passed a measure to repeal the landmark health care reform law, the Affordable Care Act (ACA).  

    It was not the first time the House has voted on such a measure. In fact the chamber has voted more than 30 times to repeal the ACA. The right-wing controlled House wants to remind everyone that it cares little about the tens of millions of uninsured Americans.

    House Democratic Whip Steny H. Hoyer (D-Md.) took to the floor during today’s vote to blast the House leadership’s continued obsession with destroying health care reform.

    “If this bill were to pass, insurance companies could once again discriminate against 17 million children with pre-existing conditions. If it were to pass, 30 million Americans would lose their health insurance coverage. It would take away $651 each from 5.3 million seniors in the Medicare ‘donut hole,’ making their prescription drugs more expensive,” Hoyer (pictured) said.

    He also noted that “6.6 million young adults under 26 would be forced off their parents’ plans, left to face a tough job market with the added pressure of being uninsured.”

    All of the Republican’s repeal bills, as Hoyer highlighted, contained no measures to help the uninsured.