December 10, 2011

2010 census data show that 49.1 million Americans are below the poverty line — in general, $24,343 for a family of four. An additional 51 million are in the next category, which is termed “near poor” — with incomes less than 50 percent above the poverty line. That is, one in three Americans — 100 million people — is either poor or perilously close to it. As for all of that inspirational, up-by-their-bootstrap talk you hear on the Republican campaign trail, over half of the near poor in the new tally actually fell into that group from higher income levels as their resources were sapped by medical expenses, taxes, work-related costs, and other unavoidable outlays. The worst downturn since the Great Depression is only part of the problem. Before that, living standards were already being eroded by stagnating wages and tax and economic policies that favored the wealthy. Conservative politicians and analysts are spouting their usual denial. Gov. Rick Perry and Representative Michele Bachmann have called for taxing the poor and near poor more heavily, on the false grounds that they have been getting a free ride. In fact, low-income workers do pay up, if not in federal income taxes, then in payroll taxes and state and local taxes. Robert Rector, an analyst at the conservative Heritage Foundation says that the “emotionally charged terms ‘poor’ or ‘near poor’ clearly suggest to most people a level of material hardship that doesn’t exist.” Heritage has its own, very different ranking system, based on households’ “amenities.” According to that, the typical poor household has roughly 14 of 30 amenities. In other words, how hard can things be if you have a refrigerator, air-conditioner, coffee maker, cellphone, and other stuff? The rankings ignore the fact that many of these are requisites of modern life and that things increasingly out of reach for the poor and near poor — education, health care, child care, housing and utilities — are the true determinants of a good, upwardly mobile life, what “the American Dream” was supposed to be. Government surveys analyzed by the Center on Budget and Policy Priorities indicate that in 2010, just over half of the country’s nearly 17 million poor children, lived in households that reported at least one of four major hardships: hunger, overcrowding, failure to pay the rent or mortgage on time, or failure to seek needed medical care. A good education is also increasingly out of reach. A study by Martha Bailey, an economics professor at the University of Michigan, showed that the difference in college-graduation rates between the rich and poor has widened by more than 50 percent just since the 1990s. Yeah, this really is the greatest country in the world.