"A Work-Based Safety Net With No Work"
Published June 09, 2009 @ 06:51AM PT

How can we reconcile our "work-first" public assistance efforts with the nationwide joblessness of this recession? It's unlikely we'll ever go back to our pre-1996 welfare days, and yet, we know job training programs often fail, and that low-wage work, while usually plentiful, doesn't lift people out of poverty. And now we can't even turn our backs on legions of struggling, working poor Americans, as more and more of us are out of work. Sadly, it's an interesting time to be an anti-poverty policymaker.
Consider these facts:
- "Nearly 14 million Americans are unemployed, and more than 100,000 people join their ranks each week."
- "Eight states have double-digit unemployment rates; California and Michigan have counties where the rate reaches Depression-era levels of 25 percent."
- "...unemployment insurance, reaches just 44 percent of the unemployed, with the lowest-paid workers most often left out."
Amazing. Depression-era unemployment. An antiquated unemployment system, rising joblessness, and yet the public assistance caseloads are not growing and are even falling in some states.
Turns out, the only healthy growth we're seeing in public assistance is in the food stamp program, which does not distinguish between those who work and those who do not. "One in 9 Americans now gets food stamps..." Chances are, if you look around you, someone in your line of vision may be one of them.
So what are we going to do? As long as we have a capitalist system, we will have people who are under- or unemployed. We have to accept that, and build public support around that reality. As long as our economic system remains gendered and racist - i.e., women and people of color are more likely to earn less than their white, male counterparts - than we have to correct for that with policy. If truly fighting poverty at home is a priority, that is. Based on the popularity of causes at Change.org alone, I'm not convinced it is. (Though I felt this way before I joined.)
Especially right now, while my jet-lagged brain is just striving for blog post coherence, I don't have any solutions. But this is something we really need to consider. Living wages? Higher minimum wage? Universal health insurance? What do you think?
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Leigh is a PhD candidate in urban planning at MIT, and a consultant on U.S. Gulf Coast recovery. She sits on the Board of the Allston-Brighton Community Development Corporation in Boston, and has worked with non-profits, foundations and local governments on policies and programs aimed at reducing urban poverty and inequality.
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There are certain basics that would help keep at least some out of poverty - universal health CARE being one. Insurance won't do it, too many of us know all too well that you can HAVE insurance and still not get access to competent health care (or any care at all) and that they can still delay or flat out deny access to the care you need. That insurance companies kept doing this to my doctors plays a major role in how Medicare helped my doctors figure out how many disabling conditions I'd REALLY been fighting - including a hard to diagnose type of seizures and the rather rare GI condition of gastroparesis that had FOR YEARS been pawned off as IBS due primarily to anxiety because my insurance companies kept denying all applicable testing (and in many cases even referrals). A realistic minimum wage - or better yet a living wage would help - though I can hear the capitalists and conservatives screaming in opposition just from mention of the thought.
What we really need to think about however has been a long running undercurrent of the poverty blog - what IS poverty and what DOES cause it. Fact of the matter is, the Federal Poverty Line is flat out unrealistic in its assessment of modern poverty. I don't know where - or how - they expect two people to live on $14,570 in 2009. Not considering that in many areas minimal rent is easily $500-600/mo for a rat hole of an apartment that's most often managed by a slum lord. This means that right off the bat, $6,000-$7,200 goes to rent, leaving no more than $8,570 to cover everything else - food, utilities, medical expenses, transportation, etc. - for the entire year. Yet the Federal Poverty Line continues to make insistence that you can - or at least should - be able to find housing for 1/3 of whatever your income may be and similar presumptions about food and other expenses as a portion of your income. Now how can housing be only 1/3 of your income if the average rent in many places runs closer to 50% and in some cases even 60% in reality? The Federal Poverty Line has never taken this into consideration. Instead, they - and the agencies using the Federal Poverty Line as an expense guideline - continue to insist that even if you spend "too much" because of the prices in REALITY, it's YOUR fault for "overspending". So it's way past time to take an ACCURATE assessment of what poverty IS because the Federal Poverty Line most certainly fails to do so (and anyone who looked at how Ms. Orshansky wrote her original report should have seen that way back in the 60's).
The other thing is to look at the myriad causes of poverty. Failure to pay adequate wages is one. I suppose it's possible that some jobs will never pay enough or may never work enough hours - but is it fair or humane to punish those who take such jobs by dismantling the safety net? Job training that launches (or as the propaganda said "released") people to just beyond the reaches of assistance was another. For job training to help, it needs to get people OUT of poverty - not to where they're barely sitting on the edges of its dirty pond that's waiting to suck them back in at any moment. Lack of access to health care is a common one - especially for people with children, people who have chronic conditions or disabilities or who have people with such conditions in their family. This is why health CARE reform is a must.
Finally, we MUST quit blaming the poor. If a job doesn't exist, how is the fault of the unemployed person? If the job doesn't pay a wage that's "livable" (meaning above TRUE) poverty or doesn't work enough hours to result in such wages, how is that the fault of the employee? If a person resides on the west coast and jobs are on the east coast, they live in the north and jobs are in the south or their skills are in computer programming and the jobs are all in bricklaying - how is that person supposed to be able to "just go get a job" when they don't qualify for any jobs and/ there aren't any jobs around them that exist? Furthermore, doing the "right" things at best, just sets a few odds in your favor - insurance makes it a little less likely you'll be wiped out by a major illness to yourself or a family member, savings gives you a cushion in the event of catastrophes like unemployment or major illnesses, having extra food on hand might mean you can eat for a few more days in an emergency - but stuff can still hit the wrong fan and you can still end up bankrupt, disabled, unemployed for too long, or whatever and still end up in poverty despite doing all the "right things". Also, it's worth remembering that not all of us have the benefit of family to fall back on or if we do have family our families are decidedly NOT a "benefit" to fall back upon. So some of us really do have no one but our friends and society itself to depend upon...
This is just what I've been able to think of for now. There's probably more stewing.
Posted by Danetta Amschler on 06/09/2009 @ 11:32AM PT
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Danetta.. Liked your view. Here in CA they expect a disabled single person to live on $830 a month and no food stamps. What they call a low income apartment here is $750 for a 1 bedroom apartment.
Leigh...when you were talking about "our economic system remains gendered and racist" you forgot the disabled in that. We are also discriminated against.
Posted by Sharon Blasingame on 06/12/2009 @ 01:51PM PT
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Here in Seattle, a poverty income means you're making too little for most housing assistance programs other than stuff like Section 8. Section 8 is so overworked that it does lotteries randomly to pick who gets to be on its very long (think years) wait lists. There are only 1 or 2 other programs that'll take you with a poverty level income and few buildings between them that really work if you have a physical disability - most of them "senior complexes". Otherwise, you're at the mercy of whomever offers a rent that is, for Seattle, "cheap" and whatever they're renting - often a studio, hotel rooms are pretty popular too or living way out of town (like half way to Tacoma which means a half hour away on a good day for traffic if you're driving yourself). The studio I'm renting, in a building with recurrent problems with stuff like drug dealers and even prostitution, has no parking, no dishwasher or garbage disposal, the security seldom works, and the laundry room only works "sometimes" is $550 and is "miraculously cheap for Seattle". This is the sort of housing we're expected to live in here - and people get angry if someone dares lobby for more affordable housing.
Posted by Danetta Amschler on 06/12/2009 @ 03:40PM PT
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Where I live in Southern Missouri the working poor are also the exhausted poor --- many taking multiple jobs to survive.
I would have said that lack of education is a major cause of poverty -- except, every high school student knows you don't need a diploma to work at a fast food restaurant or to clean hotel rooms for minimum wage, and today those are the only jobs that are readily available to even the adults in our region.
So, how do we fix it?
Corporate America must decide that paying a living wage is their best option, and can and will create the consumer economy that businesses need. Instead of trying to create consumer economy in other countries, which may take generations, corporate America needs to assure itself of a steady, healthy American economy, first. Corporate America needs to stop being irresponsible and start taking a serious look at the future of American and global businesses. Where is future stockholder investment in American (or global) business going to come from if not from the millions of small-time investors who have traditionally supported it? Working families put their hard-earned savings into investments in the hope of having some security --- that American dream has been shattered, along with the dream of home ownership and the college education for the kids. Corporate America broke this country's economy and Corporate America will have to fix it " as long as we have a capitalist system". If Corporate America won't --- then our government/public entitlement programs will have to do the job --- and to Corporate America I say, don't blame "socialism" on the politicians, look in the mirror for the place to lay blame. Don't blame the poor for your higher taxes to pay for these programs --- look in the mirror.
We cannot allow people to die for lack of basic healthcare; we cannot allow hungry, homeless families; we cannot allow our children to be denied a decent education; we cannot allow the worker to be deprived of work and an honest wage and we cannot allow ruthless, greedy business practices to bankrupt our country. So, take note, Corporate America.
Posted by Barbara Sullivan on 06/30/2009 @ 11:41AM PT
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This is what it has been like in many of the small towns where I've lived. Both parents working at least 2 part time jobs - and making *just* enough to disqualify the family from any assistance but not nearly enough to honestly survive upon because it's NOT a livable wage and if the Federal Poverty Line were being accurately figured, it'd likely be a subpoverty income for their family size. Worse, part of why it's a mish-mash of part time jobs is because that's a prime way of making sure that an employer doesn't have to offer any benefits - so the parents don't have things like sick leave or health care. And to claim that education, particularly higher education, it realistically necessary for many of the jobs where it's a job requirement is just absurd. You don't need a BA or BS to type any more than you need a high school diploma to flip a burger. Everyone but the bosses seem to know this - and all the burden of the extra education does is add the costs of paying of student loans if the person bought into the idea of education beyond high school in hopes of a "good job" but without managing to get and keep one.
A livable wage and universal health CARE (note that's CARE and NOT insurance) would in combination go miles toward ending poverty for many. Correcting how our assistance programs operate (starting with a faster and more guaranteed way to always meet one's basic food needs - something food stamps has never done) and adding a functional housing program would likely take care of it for the rest, if at the root of all that was a more accurate way to determine poverty than the current Federal Poverty Line.
But you can't blame the poor when so many jobs are designed to keep one in poverty.
Posted by Danetta Amschler on 06/30/2009 @ 12:06PM PT
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Danetta, absolutely spot on! Our assistance programs seem to be designed to assure their own continuance. TANF allows a single Mom with 3 children approx $360 a month plus food stamps and Medicaid for the children. She can't get to a place where she can even pay rent, utilities, childcare or transportation on $360/month! How is she ever to become self-sustaining?
Where I live, our Section 8 funds for new applicants have been "frozen" for months and there is an 18-24 month wait, if and when, the funds are released.
Our county ECIP (Energy Crisis Intervention Program) funds have been reduced, making it necessary for the community action organization which manages the program to eliminate 10 county ECIP workers and require the people in crisis in these 10 counties to try to get help through the central office, which has one, very busy, phone line.
I have heard stories of Food Stamps arbitrarily reduced (and increased) without any explanation.
With the latest increase in the minimum wage, our Experience Works programs CUT THE HOURS of the workers in order to stay within budget -- effectively wiping out any advantage of the minimum wage increase!!!!!
I have seen clients whose Medicaid spend-down takes more than half of their monthly disability benefit, leaving them little to live on each month, but they are afraid to lose their Medicaid because of their health issues.
I don't know what can be done about these injustices to the poor. We sit in on meetings and talk about what's wrong, but we can never get to the part of the conversation that deals with solutions.
I am frustrated! I search the internet for programs that seem to be working in other places, but frankly, there's not a heckofalot of good news out there.
As Leigh says, "What are we going to do?"
Posted by Barbara Sullivan on 06/30/2009 @ 02:14PM PT
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I have no idea what to do beyond letter writing, phone calls and rallies in the streets.
It's like what you describe in all too many places. Seattle holds "lotteries" to decide who gets on their Section 8 wait list - but they kind of try to keep it a secret when the lotteries will be and even when they DO hold one, it's just to get a spot on a wait list that's still YEARS long. A family, if still in the area, is likely to be bankrupt or homeless by that time unless they quickly perfect the "art" of living with half or so of their around poverty income going to rent.
DSHS (the "welfare" department here in WA) plays that food stamp game you described quite regularly. For no reason they'll reduce your food stamps or increase them and may the Force, the Lord and any and all other higher powers be with you should you dare to question it unless you're one of the few who has a calm, rational, contact in the social worker pool who knows the laws, policies and regulations and who ideally is or is close to being a supervisor - because they're very likely to retaliate against you by playing worse games in another of the types of assistance you receive.
As to spend downs, I'm not sure about your state, but at least here in WA, you just have to prove you HAVE the bills not necessarily that you've paid them. Might be worth checking. Because here you can often show them the bills and get credit for the spend down while many of the providers will write off the balances as charity care if you're willing to apply for such.
Which brings us to another "welfare department game". Did you know that there are "loopholes" that can be used for the purpose of medical assistance to declare families involving senior or disabled adults to be multiple families of one? This is what DSHS pulled with us and while every advocacy agency we've spoken with and even CMS has said that what they've done is "ethically wrong", "at least technically a violation" and "morally reprehensible" - there's no way to fight it until someone at DSHS will admit to more than "it's policy" for WHY they did it, as in admit WHICH law or policy says they can do what they did. So for almost the entire 3 years I've had Medicare, we've been paying my Medicare deductibles and coinsurance out of a below poverty income (as figured by the out of touch FPL) while my spouse gets full Medicaid without a spend down. There's something really wrong with that. But with how retaliatory DSHS can be and how desperately the health care is needed by us both, we're scared to death to fight - esp. considering that without that tidbit of info the ONLY way that MIGHT work is for someone to front the money (and an attorney) and take the matter to Federal Court, starting with a subpoena of their reasoning for the decision.
Posted by Danetta Amschler on 06/30/2009 @ 10:46PM PT
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Danetta, not to beat a dead horse, but you have put your finger right on the sore spot --- we are told that "it's policy" but you can't get to the policy-makers to find out if intent and practice are compatible and what to do if you think someone is an exception to the "policy".
If a client files an appeal, at least here where I live, she might as well walk around with a big sign saying, "TROUBLEMAKER" on her chest. I have even been told by my superiors to "never tell a client to file an appeal", which is totally against policy! (Until last month I was employed by a non-profit agency). Granted, my superior was just trying to protect the client from that "retaliation" you talked about --- but, yegads! it's like telling the client, "hey, suck it up, you have no recourse!" I just find that very hard to do.
Anyway, thanks for participating in this thread with me --- and I'm going to look into the spend-down issue, so thanks for the tip. We are organizing some meetings here with our senior and disabled citizens to talk about spend-down and I appreciate the input.
Posted by Barbara Sullivan on 07/01/2009 @ 12:24PM PT
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Okay, I found people. I have a informational hotline I see government officials break the law everyday, against the people who call me.
Barbara, I know that feeling that you feel like telling people "Sorry the system is Not working likes its suppose to today." Oh by the way it works like that everyday, you are up silly creek without a paddle." What I run is a Homeless Crisis Hot line. I tell people how the system is suppose to work. I tell them about appealing General Relief, then I tell them places to stay warm in their towns Like Libraries, walking around wal-mart for a few hours, etc.
People who need sleep or have children I tell them how to panhandle. They have more of a chance of finding caring strangers than having towns aid them. This is not right. This is NOT The America we were told about when we were children.
Main stream news sources rarely tell us how broken the system is so it can be fixed. Their advertisers do not want you to know. It might hurt their business.
Even through I have been aiding people with information since 1983, I never really thought of the USA and industrialized nations safety net being work.
Posted by jan Lightfootlane on 08/31/2009 @ 01:40PM PT
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