Category Archives: Poverty in America

Listen up, Congress: We need swift COVID-19 measures that put people first

 By Mary Babic

Cross-posted from Oxfam America’s “Politics of Poverty” series

The swift and devastating spread of the coronavirus in the US is dealing a staggering blow to our public health systems and our economy. It is also exposing how working families have been struggling for decades. As Americans grasp the enormous and long-term impact, they support policies that will deliver to those most affected and pave the road to an equitable recovery.

 The groundswell is crystal clear: A new Oxfam-Data for Progress national poll, conducted days ago, indicates overwhelming support (greater than 70 percent) for measures that directly help working people, including: paid sick leave for all workers, emergency funding for food supplies for those affected by the crisis, free testing for the virus, and moratoriums on evictions, foreclosures, and utility shutoffs.

Even “very conservative” voters indicate majority support for emergency cash payments, waiving copays for coronavirus treatment, and increasing federal funding for Medicaid. On the flip side, support drops noticeably for policies that prop up large businesses.

Support extends across all divides

Stunningly, support for these measures cuts across ideological, racial, and age divides. Simply put, voters recognize that this is a moment of great peril. As the clock ticks and the numbers rise, the pandemic is quickly revealing how many working families were already struggling to stay afloat, living paycheck to paycheck.

Americans want to prevent them from falling into bankruptcy, homelessness, and hunger. Women indicate stronger support for actions to protect working people. This may reflect the fact that women face disproportionate hardships during crises. They are the primary caregivers of children, the ill or disabled, and the elderly, and being confined in the home increases care work and stress. In addition, women are currently on the front lines as nurses, doctors, personal aides, and cleaners. Finally, we know from long experience that domestic violence spikes in times like these.

Among the overall insights: 86 percent support free access to coronavirus testing, vaccination, and care for every American. Eighty-six percent support strengthening unemployment assistance (especially for workers who depend on tips, gig workers, domestic workers and independent contractors). Eighty-five percent support an immediate moratorium on evictions, foreclosures, and utility shut offs. Just 54 percent support low–interest government loans for oil and gas companies.

Americans are saying it loud and clear: We cannot sit back and watch as the pandemic devastates the most vulnerable and flattens our economy. It’s time for proactive and effective government action. While Congress recently passed legislation that mandated paid sick leave, it excludes 80 percent of workers. We must do better.

An effective policy agenda

If our response is left to the market, COVID-19’s impacts will cascade through our economy, further deepening poverty, gender, racial and wealth disparities.

It is not time for half-measures and incremental tweaks to an economic system already fragile and rigged in favor of the powerful. Instead, we need decisive, audacious actions to prevent long-lasting and grave economic consequences for everyone—especially for those pushed out of progress for decades.

As Congress feverishly negotiates its third economic rescue package, Oxfam has developed a full economic policy agenda. Here are some highlights:

Protect working people being hit the hardest 

Payroll tax cuts are a farce: ineffective, regressive and potentially bankrupting Social Security. Instead, Congress should deliver:

  • Cash payments to all individuals.
  • Recurring boosts to federal anti-poverty programs.
  • Paid sick and family leave to all.
  • Increased unemployment insurance benefits.
  • Fiscal relief to states, counties, and cities that will bear the brunt of this crisis.
  • Investments in emergency shelters for women facing domestic violence at home.

 No blank checks to big business, but lifeline support to smaller companies and workers

An economic triage rescue plan would prioritize support to small businesses on the edge, not the country’s most powerful multinational companies flush with cash.

  • This is not a time for bailouts, or corporate tax cuts, for big business.
  • This is not a time to re-write tax policy to the benefit of the wealthy (which endangers resources we will need in the long term).

Moreover, we agree that assistance to corporations should be conditioned on forbidding recipients from: reducing payrolls; violating existing collective bargaining agreements; demanding concessions from workers; outsourcing; increasing workloads; and, companies must agree to a $15 minimum wage once the crisis has passed.

Any sectoral assistance should be explicitly time-limited and subject to certain conditions, including and especially prohibiting share buybacks; freezing executive bonuses; requiring board approval for political lobbying expenditures; and country-by-country tax reporting.

No free lunch to certain sectors

Any assistance to corporations should not exacerbate existing inequalities, worsen public health outcomes, or impede the necessary global transition to a zero-carbon economy. In particular, sector-specific benefits for oil and gas producers, who’ve long-received subsidies and tax breaks, should not be considered at this time.

Affordable testing, treatment, and vaccination will be essential for economic recovery. Any assistance or incentives for the pharmaceutical sector must ensure that breakthroughs in treatment and vaccines become a global public good, accessible and affordable to everyone.

Mary Babic is the Senior Communications Officer for the US Regional Office at Oxfam America.

 

Taking Food Out of Poor Kids’ Mouths

By Randy Rosenthal

The US Department of Agriculture has proposed restricting access to the Supplemental Nutritional Assistance Program (known as “food stamps”) on the ostensible grounds that it is necessary to close a loophole in the program. But the real reason, it appears, is an ideological commitment to lowering taxes on the rich and cutting government spending on the poor. 

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Back in 1964, President Johnson initiated the War on Poverty, which aimed to eradicate the conditions of poverty by providing American citizens with access to food, education, and a secure retirement. Today, the Trump Administration is leading a War against the Poor, which aims to do the opposite. The most recent and blatant act in this war is the US Department of Agriculture’s proposal to restrict the Supplemental Nutrition Assistance Program (SNAP), otherwise known as food stamps.

On July 23, the USDA released a statement about the proposal, which aims to save $2.5 billion by taking 3 million people off of food stamps. The statement doesn’t mention it, but 500,000 of these people are children who will automatically lose access to free school lunches.

The ostensible rationale behind the proposal is that there is “a loophole” that needs to be closed: low income participants receiving Temporary Assistance for Needy Families (TANF) benefits are automatically eligible for food stamps. Because of this policy, which is designed to help transition families toward economic independence, the USDA claims that people are receiving assistance when they clearly don’t need it. To support this claim, they point to a Minnesota man who enrolled in the program, even though he was a millionaire. Continue reading

Poverty Is Both a Political and a Moral Choice

By Ven. Bhikkhu Bodhi

The UN Rapporteur on Extreme Poverty reports that “the American Dream is rapidly becoming the American Illusion.” Isn’t it time to wake up, discard both dreams and illusions, and act on the basis of the truth?

AThe U.S. views itself as the exceptional nation, the beacon of freedom and justice for the world. In the popular imagination, it is the land of plenty where everyone can thrive, the land of opportunity where anybody who works hard enough can realize the dreams of their heart. But is this really so or just a comforting illusion?

For two weeks this past autumn, Professor Philip Alston, the UN Special Rapporteur on Extreme Poverty and Human Rights, sought to find out, traveling over the U.S. to assess the state of extreme poverty in this country and its impact on human rights. His travels brought him to California, Alabama, Georgia, West Virginia, and Washington, D.C., as well as Puerto Rico. His report, published in mid-December by the Office of the UN’s High Commissioner of Human Rights, pulls the curtains on the illusions this country cherishes about itself and reveals the startling truth about where we stand and where we are headed. Although the extent of poverty and income inequality in the U.S. has been documented several times in the past, it is still telling that the UN Rapporteur on Extreme Poverty would undertake such an investigation in America, of all places, and expose the U.S. as an outlier among the economically advanced countries.
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