stimulus
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1 in 10 Americans Unemployed
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Stimulus Bypasses Women and Minority Businesses
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Your Recession in Charts
10% Unemployment Looming
Published November 05, 2009 @ 12:00PM PT
New unemployment #s come out tomorrow - economists predict 9.9% unemployment nationwide. Can I just round that up to 10% and call it a day?
First time jobless claims were less than expected in October, though only 20k fewer of over half a million. We are supposed to take this as good news that "job cuts are easing as the economy slowly heals." This is the lowest level since January. Still...2009 is almost over and we're still seeing half a million people per month file for unemployment for the first time? That is one horribly contracting economy.
Surviving workers are laboring more feverishly than ever - productivity is up even as our incomes are "squeezed". The stimulus is keeping a lot of jobs afloat; unemployment benefits are practically extended into perpetuity at this point. No wonder discount retailers are doing slightly better than specialty stores; it's amazing we've got anything left to leave behind at the mall!
Desperation Reigns In Detroit
Published October 10, 2009 @ 09:27AM PT
You may have heard by now of the crush of Detroiters who descended on Cobo Hall this week to apply for homelessness prevention assistance. 50,000 - 60,000 residents have received applications for 3,400 packages of up to $3,000 to cover utility bills and fees associated with keeping one's home or moving into a new one.
The Detroit Free Press Editorial team beat me to the Katrina metaphors, and even threw in "tsunami" for good measure to describe Detroit's economic disaster.
But seriously: I know no flood waters have ravaged Detroit, nor have unseasonal weather conditions killed anticipated crop loads, but how can we not classify Detroit's 30% unemployment, 30% poverty rate, and upwards of 80,000 vacant homes as a national disaster? Are we so despairing ourselves, or so immune to economic conditions, that we've become inured to the increasingly regular photos of hoards of desperate Americans crowding our convention centers for whatever meager, emergency assistance we throw at them? If I could turn this into a photo essay I would: Those prior two links are of African-Americans lining up for free healthcare in South Los Angeles, and Detroiters at Cobo Hall waiting for aid applications. Those Depression-Era bread lines are NOT a thing of the past.
(Photo of Katrina survivors outside the Convention Center in NOLA by Wyn Henderson for FEMA)
No Work for Welfare in CA
Published October 07, 2009 @ 06:00AM PT
Cue the hyperventilating about dependency and free riders: California, in an effort to save money, has suspended work requirements for some of its public assistance recipients for the next 17 months. Never mind that its welfare-to-work program will become even more stringent in 2011, and that it cannot even afford to subsidize the critical child care needed for recipients to work in the first place. Layabouts will be getting rich off your tax dollars, without earning a dime! Shiftless miscreants.
Oh, what's that now? What are we seeing in Fresno, one of the first places to implement the new, less expensive policy? "Belying stereotypes, only about 10 percent of those who could be exempted from the work requirements — and supporting aid like child care — chose to do so in the first month." Turns out, people like receiving job prep and trying to play an active role in society! Let's try to remember that when we crank up the wailing about welfare queens despite the fact that "opting out" will become "mandatory" in the future due to CA's insane budget realities.
Rural Child Poverty Widespread
Published October 03, 2009 @ 11:15AM PT
Thanks to Diane, we get a glimpse here of rural poverty in the U.S., a topic typically overshadowed by a national focus on urban poverty. Not surprising, given 80% of the country is classified as metropolitan, meaning there's a significant density of people and homes in the majority of the nation. But rural poverty is just as troubling and worrisome as poverty in the cities and suburbs, particularly given how many children are poor in rural America.
The Economic Research Service provides some #s from the recession's impact on rural America: Unemployment rose more sharply in metro regions, though it's about 9% nationwide. In rural communities, minorities and teens have the highest unemployment rates. Almost 1 in 4 kids in rural areas are poor, especially in communities with high minority populations. And well more than half of all rural counties have high child poverty rates where at least 1 in 5 children are poor. Child poverty is highest in well-known chronically poor areas: the Mississippi Delta, on Native American reservations, and along the border with Mexico.
Childhood poverty in rural America is a chronic problem; one that activists, advocates and policymakers are still trying to understand. It appears to be a perennial lack of educational and job opportunities, particularly for rural African-Americans, who have lived for generations with resources bypassing their communities and no particular means to get out. This is a topic I know very little about, but I do know this: the recession is by no means over, and if there was ever a time to refocus our priorities on these chronically poor, chronically forgotten communities, it's now.
G20 Countries Take On Economic Inequality
Published September 28, 2009 @ 04:43AM PT
G20 leaders are heralding their progress last weekend in Pittsburgh as a sign of a new world order, in which they will collaborate as "permanent stewards of the world economy for the first time," monitored and evaluated by the International Monetary Fund to ensure that "economic policies of G20 countries are consistent with 'sustainable and balanced trajectories for the global economy'." This plan lacks any enforceable power - it is a strategy of global goodwill, embarrassment and peer pressure to avoid on-going boom and bust economic cycles - but there is talk of imposing a tax on financial speculation (e.g., derivatives) to curb "excessive risk-taking."
This is a positive if amorphous development for the world and the US. It signals that we are eager to return to a more cooperative stance in the world, and it is a more overt, collective acknowledgment by nations of the uneven outcomes of globalization that I've seen before. But what next? Unsurprisingly, the U.S. is loathe to take on Wall Street, and the rift between the developing world's need for better access to markets and less onerous trading conditions and the developed world's desire to protect their unfair advantage in our "free" market economy persists.
Target Takes Food Stamps
Published September 21, 2009 @ 06:00AM PT
So many Americans are now using food stamps that more and more chain stores have begun accepting them, rather than lose these customers to economic hardship. New or expanded recipients include Target, CVS, 7-11, Costco, BJ's and Sam's Club.
Food stamp use was up 22% this summer from 2008, with more than 35M Americans using them. Food stamps now come on a card identical to a debit or credit card, offering discretion and privacy for Americans self-conscious about relying on public assistance. For businesses, Costco finds that food stamp users spend an additional $50 or so on purchases not covered by the benefit.
There's a message in here about economic hardship becoming mainstream, becoming normal. I'm trying to generalize it to an ideal world where one is not punished for being poor, where a low-income parent can stand in line at the grocery store without a sense of shame - that she's even at the better grocery store rather than an overpriced bodega or food bank is an accomplishment. (Of course, see the original link above to understand transportation issues.)
Expanded food stamp acceptance at more stores is one of these situational responses that becomes permanent. From the sound of it, businesses have to invest in some degree of technological or process change to accept these cards. These are likely not upgrades that will be rolled back once the recession really lifts. As anti-poverty activists, we should be thinking about emergency services and about long-term changes we can push through during moments of crisis. Yes, we've got to expand eligibility for food stamps so all the many million more bellies don't go hungry, but if there was ever a moment to update the poverty measure to reflect the costs of housing, health care or decline in wages - It's Now.
Don't Forget the (Faux) Middle
Published September 11, 2009 @ 05:07AM PT
As policy wonks and politicians try to convince us of recovery, the rest of the country is focused on white-knuckled survival. Far too many are in dire straits. Take Laura and her 2 teen sons, crammed in a ramshackle trailer with Laura's prematurely aged parents in Franklin, a little town south of Indianapolis.
Her parents live, like many housing-challenged seniors do, in a trailer park. Laura and her sons doubled-up with them because they are homeless, their abode lost in this latest fiscal crisis that continues to bedevil our country (despite all the "happy" talk). Her parents own this humble single-wide. From the outside it looks like the rest of the units in the park, but the inside tells the story.
