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AP Says 4 In 5 In US Face Near-Poverty, No Work

A random act of journalism from, of all places, the Associated Press:

Exclusive: Signs of declining economic security

By HOPE YEN | July 28, 2013

WASHINGTON (AP) — Four out of 5 U.S. adults struggle with joblessness, near poverty or reliance on welfare for at least parts of their lives, a sign of deteriorating economic security and an elusive American dream.

Survey data exclusive to The Associated Press points to an increasingly globalized U.S. economy, the widening gap between rich and poor and loss of good-paying manufacturing jobs as reasons for the trend…

So all we need is more trade barriers and more socialism to solve the problem. Oh, and we can mandate more good-paying manufacturing jobs. Preferably ‘green’ jobs.

Hardship is particularly on the rise among whites, based on several measures. Pessimism among that racial group about their families’ economic futures has climbed to the highest point since at least 1987. In the most recent AP-GfK poll, 63 percent of whites called the economy "poor." …

While racial and ethnic minorities are more likely to live in poverty, race disparities in the poverty rate have narrowed substantially since the 1970s, census data show. Economic insecurity among whites also is more pervasive than is shown in government data, engulfing more than 76 percent of white adults by the time they turn 60, according to a new economic gauge being published next year by the Oxford University Press.

The gauge defines "economic insecurity" as experiencing unemployment at some point in their working lives, or a year or more of reliance on government aid such as food stamps or income below 150 percent of the poverty line. Measured across all races, the risk of economic insecurity rises to 79 percent…

Yes, thanks to Mr. Obama, we have narrowed the racial gap here, and now more whites know what it is like to face ‘economic insecurity.’

He noted that despite continuing economic difficulties, minorities have more optimism about the future after Obama’s election, while struggling whites do not.

"There is the real possibility that white alienation will increase if steps are not taken to highlight and address inequality on a broad front," Wilson said.

Sometimes termed "the invisible poor" by demographers, lower-income whites are generally dispersed in suburbs as well as small rural towns, where more than 60 percent of the poor are white. Concentrated in Appalachia in the East, they are also numerous in the industrial Midwest and spread across America’s heartland, from Missouri, Arkansas and Oklahoma up through the Great Plains.

More than 19 million whites fall below the poverty line of $23,021 for a family of four, accounting for more than 41 percent of the nation’s destitute, nearly double the number of poor blacks…

Aren’t these the bitter clingers? And aren’t they the very people that Obama wrote off in his campaign? So to hell with them. In fact, we need to legalize another 11 million more illegal aliens, to compete with them for jobs.

By race, nonwhites still have a higher risk of being economically insecure, at 90 percent. But compared with the official poverty rate, some of the biggest jumps under the newer measure are among whites, with more than 76 percent enduring periods of joblessness, life on welfare or near-poverty…

"Poverty is no longer an issue of ‘them’, it’s an issue of ‘us’," says Mark Rank, a professor at Washington University in St. Louis who calculated the numbers. "Only when poverty is thought of as a mainstream event, rather than a fringe experience that just affects blacks and Hispanics, can we really begin to build broader support for programs that lift people in need."

Rank’s analysis is supplemented with figures provided by Tom Hirschl, a professor at Cornell University; John Iceland, a sociology professor at Penn State University; the University of New Hampshire’s Carsey Institute; the Census Bureau; and the Population Reference Bureau.

Among the findings:

—For the first time since 1975, the number of white single-mother households who were living in poverty with children surpassed or equaled black ones in the past decade, spurred by job losses and faster rates of out-of-wedlock births among whites. White single-mother families in poverty stood at nearly 1.5 million in 2011, comparable to the number for blacks. Hispanic single-mother families in poverty trailed at 1.2 million.
—The share of children living in high-poverty neighborhoods — those with poverty rates of 30 percent or more — has increased to 1 in 10, putting them at higher risk of teen pregnancy or dropping out of school. Non-Hispanic whites accounted for 17 percent of the child population in such neighborhoods, up from 13 percent in 2000, even though the overall proportion of white children in the U.S. has been declining.
The share of black children in high-poverty neighborhoods dropped sharply, from 43 percent to 37 percent, while the share of Latino children ticked higher, from 38 to 39 percent.

Going back to the 1980s, never have whites been so pessimistic about their futures, according to the General Social Survey, which is conducted by NORC at the University of Chicago. Just 45 percent say their family will have a good chance of improving their economic position based on the way things are in America.

The divide is especially evident among those whites who self-identify as working class: 49 percent say they think their children will do better than them, compared with 67 percent of non-whites who consider themselves working class.

In November, Obama won the votes of just 36 percent of those noncollege whites, the worst performance of any Democratic nominee among that group since 1984…

That was no accident.

This article was posted by Steve Gilbert on Monday, July 29th, 2013. Comments are currently closed.

5 Responses to “AP Says 4 In 5 In US Face Near-Poverty, No Work”

  1. dasher

    Ah, but the rich are now paying their “fair share” of the taxes Steve. This was always part of the plan; make everyone equally poor and make “the rich” pay their “fair share”. Both goals now accomplished!

    D.

  2. Petronius

    While prices have been going up, wages have been going down.

    As a result, the personal indebtedness of the American consumer just hit a new record high at $15.8 trillion. That represents more than $50,000 for each man, woman, and child. Student loan debt, now over the $1 trillion mark, is the fastest growing component of private debt.

    This also means that our very modest economic growth, reported at about 1.7 percent, is largely being driven by consumer debt spending. This debt spending is receiving support from the Federal Reserve’s low interest rate policy. In other words, consumer debt is being substituted for real economic growth.

    Meanwhile household incomes, adjusted for inflation, have declined back to 1995 levels. It takes more work today to buy a loaf of bread or gallon of gasoline. And so since wages are actually declining, and prices rising, personal debt is increasing, and therefore everyday more and more Americans fail to keep up and drop out of the middle class into poverty. These Americans are forced to either become welfare dependents or debt slaves to their credit card companies.

    Some consumers may continue to spend, at least for a time, while borrowing costs remain low. But what happens to these people when interest rates return to “normal” (pre-Bernanke) levels? Interest rates have been moving up sharply since May, although they still remain at historically low levels.

    To illustrate their situation, at an interest rate of 5 percent, a young married couple with $70,000 in gross household income and a debt load of $200,000 will need about one-seventh ($10,000) of their pre-tax income to service the interest on their debt. That means they both have to work one day a week just to pay interest (to say nothing about paying off the principal). After taxes they will each have to work one day a week to service the debt plus one day or more to pay their taxes. As interest rates move higher from 5 percent, they will have to work more and more days just to keep pace and avoid default. What kind of future is that?

    Private debt is owed to various creditors such as credit card companies, finance companies, banks, collection agencies, pawn shops, and Wall Street investors. Frankly nobody in government today cares much about these institutional investors and creditors. If debtors default, and creditors go under, Nerobama and the Bolsheviks in Congress couldn’t care less. They’d probably celebrate.

    Everybody talks about the national debt, underfunded entitlements, Detroit, and California, but nobody talks about private debt. We should give some serious thought to the coming confrontation between debtors and creditors. We are heading for a conflict between young and old, between rich and the growing poor, between the struggling underemployed and their creditors, between Occupiers and Wall Street, between taxpayers and tax-eaters, between “them” and “us.”.

    If young people will vote overwhelmingly to elect and reelect a demagogue like Nerobama, what might they do when interest rates rise and their situation becomes utterly hopeless? When the only future they have is each partner working two jobs, one job to pay off private creditors and taxes, and another job to provide something for their own meager support, and there are still no good jobs available?

    We seem to be on a course for bankruptcy and class war.

    • I saw an episode of Top Gear this weekend. The trio went to Spain to flog three of the priciest supercar convertibles.

      What they found once in Spain beggars belief. Endless blocks of new high density housing developments finished and empty. Miles of housing empty. Vast stretches of first class European-quality four lane highways devoid of traffic. And the kicker … an entire brand new airport finished and ready to roll … unoccupied and vacant. Nothing. Nada. I’m talking about 2.5 mile long runways without a mark on ‘em.

      It was scary. I mean crashingly disturbing. Spain, a first tier nation, albeit with a heavy handed bent toward social Socialism is still a first tier nation and … brand new everything empty and blank.

  3. canary

    The 2012 election focused on the “middle-class” rather alarmed and puzzled me. Was it implying the lower-class was doing well with prices spiked and dealing with following Green regulations and if they end up in poverty they will be taken care of?

    And then Anthony Weiner shows up with working to aid the “middle-class” as his life long work.
    Seems he looks down on the lower class and impoverished. What arrogance.

    MSNBC: Anthony Weiner: I’m Focused On Middle Class Issues, Not The Clintons

    By Hunter Walker – May 22, 2013

    He said that theme of fighting for the middle class will be a major focus of his run, as it has throughout his political career.

    “I am who I am. You know, when I ran for mayor in 2005 and frankly just about everything I’ve done in my public life has been animated by the notion that, for those who are in the middle class and struggling to make it, things have gotten worse,” Weiner explained. “I’m the same guy and I think that a lot of these challenges have gotten even worse. But I’m not a different person in terms of the things I care about than I was in my whole career.”

    Weiner demurred when asked whether the other candidates in the crowded mayoral election are also representing the needs of middle class New Yorkers.

    “I’ll leave it to them to characterize their own campaigns,” he said.

    “As a matter of fact, I don’t think there’s anyone in public life who I’ve kind of sought out their approval or even much advice…”

    “I feel bad for them,” Weiner said of the media contingent in front of his building. “I have so many calls, it’s not a — it’s not intended to be an insult to them in any way. I had to do about 200 calls including this one.”

    “I thought the very least we can do is make sure that they have something to eat,” said Weiner. “It was actually Barbara’s idea. If it were up to me, it would be more on the order of bread and water, but, no I jest. I know that you guys are just doing your job.”

    http://tpmdc.talkingpointsmemo.....intons.php

    I’ve actually had some decent conversations from those who made the mistake and voted for Obama as the green regs are wiping out pocketbooks and health care is more expensive than ever.

  4. AcornsRNutz

    Call me cynical, but when I first heard this I was put off by the “exclusivity” of the data to AP. The best analysis I can cup up with borrowing and expanding on some I have heard, is that this is the beginning of a new push from the government to “do something” about this mess and as we all know that something will likely make things worse (song with agree that even if these numbers are wrong, this is what the administration is going for). I suspect due to the current push into immigration “reform” and all the race baiting bs of late, someone got concerned that the low-into dopey WHITE obamanauts are still necessary for the time being, and someone needs to throw them a bone. With the amnesty charade still in question an the increase in the black victimhood noise, the white liberal vote is still important, and no one in the administration ignores that th white lib vote vote was an is crucial in getting them to this point.

    I suspect some kind of white-trash and union oriented freebie push is coming in time for mid terms. Just a hunch.




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