Poverty & Wealth

The Democrats' Original Food-Stamp Sin

AP Images/J. Scott Applewhite
“Today, 47 million Americans struggling to put food on the table will have to make do with less,” began the emailed press release from House Democratic Leader Nancy Pelosi’s office. The statement lamented the $5 billion cut to food-stamp benefits that took effect November 1, rolling back a 13.6 percent expansion to the program that was part of the 2009 stimulus package. The cuts leave “participants with just $1.40 to spend per meal,” the press release continued, adding that House Republicans want to subject food stamps to more cuts in the future. But before Democrats completely rewrite the history of this body blow to the poor, a review of the facts would be in order. The seeds of this current food-stamp cut were sown by multiple deals made when Democrats held both chambers of Congress and the White House. They used money from the food-stamp program to pay for other priorities like education, health care and the school lunch program, all the while assuring that they would eventually...

The Hidden Indentured Class

Sex trafficking isn't our only problem—forced labor accounts for a significant number of the estimated 20,000 victims of human trafficking who enter the U.S. each year.

 

AP Images/New Mexico Attorney General's Office
AP Images/New Mexico Attorney General's Office A nna and her husband were supposed to be in the U.S. on their honeymoon. They arrived at Los Angeles International Airport in the spring of 2007 and found Daniel waiting for them with a sign bearing their names. Daniel was an acquaintance, someone Anna’s father-in-law—who lived in Houston—knew through church. He had offered to show them parts of Southern California before they continued on to Texas. It was an attractive detour for a Southeast Asian couple in the U.S. for the first time. From the airport, they drove to a restaurant for dinner and met some of Daniel’s family—a stop that felt warm and welcoming since they were all from the same country originally. “He was really nice and since we don’t know anybody—and we came from the same country,” Anna recalls, “that’s why we trusted to go with him.” But then, instead of playing tour guide, Daniel brought the couple to an elder-care facility he owned. He told them to work, care and cook...

When Kids Stand Their Ground

AP Photo/Mike Brown
AP Photo/Phil Sears O n September 20, 21-year-old Bryon Champ was shot at by rival gang members, who grazed his leg with a bullet. That night, Champ and three allies allegedly went to the other gang’s neighborhood and opened fire on a crowd with an assault rifle, wounding 13 people, including a 3-year-old boy. They have been charged with multiple counts of attempted murder. Our nation's libertarian approach to guns has exacted a terrible toll on young people. The U.S. firearms homicide rate is 20 times that of other industrialized countries. But for those ages 15 to 24, it’s an off-the-charts 43 times higher . And until this year, a 17-year congressional ban on federally funded firearms research wrecked efforts to systematically understand the links between state gun laws and gun casualties. (The Obama administration lifted the ban in January.) Violence and easy access to guns have especially created a lethal witches’ brew in poor neighborhoods. Crime experts agree on the need for...

Big Bank Punishments Don't Fit Their Crimes

AP Images/Richard Drew
With the Justice Department desperate to rehabilitate its image as a diligent prosecutor of financial fraud, securing headlines along the lines of “the largest fine against a single company in history” is a lifeline. In a tentative deal , the Department would force JPMorgan Chase to pay a $9 billion fine and commit $4 billion to mortgage relief, to settle multiple investigations into their mortgage-backed securities business. The bank stands accused of knowingly selling investors mortgage bonds backed by loans that didn’t meet quality control standards outlined in its investment materials. JPMorgan Chase wants to “pay for peace” in this deal, ending all civil litigation around mortgage-backed securities by state and federal law enforcement, though at least one criminal case would remain open. But for the Justice Department to truly start fresh, and fulfill their mission of stopping corporate fraud and preventing it from occurring again, they will have to compel JPMorgan to admit full...

Tom Friedman’s Worst Column Ever

AP Photo/Mark Lennihan
Sometimes, Tom Friedman writes a column that is such complete baloney it makes you want to retch. Rather than risking soiling my shoes, here is a point-by-point rebuttal to Friedman’s opus du jour, titled: “ Sorry, Kids. We Ate It All .” Friedman’s column swallows whole the budgetary malarkey of the corporate Fix-the-Debt lobby and its Wall Street sponsors. Namely, the reduced horizons of the next generation are the result of the gluttony of old folks—and of unions. But what makes this piece especially appalling (and emblematic) is that the hero of Friedman’s piece is one Stanley Druckenmiller, a hedge-fund billionaire who has appointed himself as the Paul Revere of deficit reduction to warn America’s college students that The Seniors Are Coming. In passing, Friedman discloses that Druckenmiller is also “a friend.” So on top of the absurd logic of the piece, Friedman is guilty of a conflict of interest—using the most valuable real estate in American journalism to do a favor for a chum...

Mining for Victory

AP Images/St. Louis Post-Dispatch/Stephanie S. Cordle
The story of the United Mine Workers of America is the story of the American labor movement as a whole. The Mine Workers were once the single most important union in the United States: the union that broke from a stodgy labor federation in 1935 to devote its resources to organizing the nation’s factories, the union that built such dynamos as the United Auto Workers and the Steelworkers; the union that sunk so much money into Franklin Roosevelt’s 1936 campaign that FDR didn’t raise a peep when striking auto workers occupied General Motors’ Flint, Michigan, factories and didn’t come out until GM had recognized their union; the union that had the strength and cojones to strike during World War II’s strike ban; the union that transformed industrial America. Today, with membership shrunk to perhaps just 10 percent of their peak strength numbers, the Mine Workers, like the labor movement generally, have a past that quite outshines their present. Their retirees outnumber their current...

Notes from the Underground Economy

The Prospect talks to Sudhir Venkatesh about his new book Floating City: A Rogue Sociologist Lost and Found in New York’s Underground Economy .

Flickr/omar.hassawi
Floating City: A Rogue Sociologist Lost and Found in New York’s Underground Economy is a new book by Sudhir Venkatesh that explores the struggles and aspirations of disparate New Yorkers and shows how the city’s underground economy connects its inhabitants from all walks of life. In the book, Venkatesh introduces us to a range of characters: Shine, a crack dealer breaking into the high end cocaine market centered around the art galleries, bars, and clubs of the rich; Manjun, a porn store clerk who allows prostitutes to rent his back room; and Venkatesh’s friend, Analise—the beautiful daughter of a wealthy family—who confesses to him that she manages a group of high-end prostitutes that cater to the rich. In his previous work, Gang Leader For a Day: A Rogue Sociologist Takes to the Streets, which chronicles the lives of drug dealers in Chicago, Venkatesh found that people took pride in staying within their own communities. That’s not the case for the characters in Floating City —as the...

Postcards from the Shutdown Edge

AP Photo/Brian Skoloff)
AP Photo/Chuck Burton T en days into the shutdown, it’s easy to wonder just how much the federal government helps people day-to-day. We’ve heard about delays in highways maintenance and about federal workers who have to wait until the government opens to get paid. What about those programs conservatives are always complaining about? You might have expected stories about people suffering without help from various federal services—from food stamps to welfare checks. Instead, there’s been little to indicate needy people are going without. That’s because the worst potential effects of the shutdown have been delayed—for now. States, even deep red states, are currently covering for the feds. Some programs waiting for re-authorization—like food stamps—are still largely intact because the federal government sends out reimbursements at the end of the month, so there’s still money and state employees to administer the benefits. Others programs have state money to thank. Through moving funds...

Two-Faced: The Democratic Party's Divergent Future

AP Images/Tina Fineberg
M ichael Bloomberg has declined to endorse anyone in the race to succeed him as New York’s mayor. Neither Democrat Bill de Blasio, whose entire campaign is a critique of Bloomberg’s tenure in office, nor Republican Joseph Lhota, who is trailing de Blasio by a mind-boggling 50 points and who has been heard disparaging Bloomberg to boot, has endeared himself to the billionaire mayor. But Bloomberg has not been without other local endorsement options—just not for mayor. Earlier this week, hizzoner’s spokesman said that Bloomberg would endorse Newark Mayor Cory Booker in his bid to win New Jersey’s U.S. senate seat later this month. (The date of the special election is October 16 th .) The New York Times has reported that Bloomberg’s PAC will spend $1 million on ads to boost Democrat Booker in his surprisingly close race against Tea Party Republican Steve Lonegan. The most recent poll, from Quinnipiac, shows Booker leading Lonegan by 12 points—the same margin as last month, but down...

The Task Rabbit Economy

T askRabbit.com markets itself as a Web service that matches clients seeking someone to do odd jobs with “college students, recent retirees, stay-at-home moms, [and] young professionals” looking for extra income. The company website calls it “a marketplace dedicated to empowering people to do what they love.” The name Task Rabbit doesn’t exactly suggest the dignity of work, and the love often takes humble forms. Customers hire Task Rabbits to clean garages, haul clothes to the laundry, paint apartments, assemble Ikea products, buy groceries, or do almost anything else that’s legal. The San Francisco–based company, which has raised $38 million in venture capital since it was founded in 2008, makes its money by tacking on a 20 percent surcharge to the fees paid by clients. The firm performs criminal background checks on aspiring Rabbits, who then get access to chore requests posted by customers. Using the familiar metrics of the Internet, the more than 10,000 approved Rabbits are rated...

The She-covery that Wasn't

Press Association via AP Images
AP Photo W hen the government shutdown ends and September’s jobs report is released (it was supposed to appear last Friday), careful readers will notice that women are holding a number of jobs either at or just above their all-time high (which came in early 2008), while men are still millions short of their own pre-crash milestone. Hailing a successful she-covery, however, obscures the fact that women still face an elevated unemployment rate and that the barriers that kept that them from earning as much as men before the recession are still in place. Women are millions of jobs short of where they would be if the economy was at its full potential. Many of the new jobs they have are low-paying. The main causes of the pay gap, like gender segregation in the labor market, have not gone away. That women are gaining jobs is a good thing, but policymakers should not be convinced their work is over. Quantity Even though women hold about as many jobs now as they did before the crash,...

Restorative Justice's After-School Special

“Education was where my heart was,” says Tyrone Sinclair in Growing Fairness , a documentary showcasing the impact restorative-justice programs can have in our nation's schools. Sinclair says he was expelled from school at 16, became homeless, and then ended up in jail. Now, he organizes young people in Los Angeles. “I knew that wasn’t the place for me,” he says of prison. “I love to learn every day.” Growing Fairness was screened at the Thurgood Marshall Center in Washington, D.C., this Wednesday, at an event hosted by Critical Exposure, a local youth group that trains high-school students in photography so they can document problems in their communities. The audience included mostly high-school students and people in their 20s, most of whom were interested in or researched education reform, though a few older community members and attorneys for civil-rights organizations were also present. The event was part of the fourth annual Week of Action organized by the Dignity in Schools...

America's Neediest Families Are About to Run Out of Money

AP Images/Melanie Stetson Freeman
Update: Governor Jan Brewer has ordered state officials to redirect $650,000 in state funds so that families continue to receive welfare benefits. W hen Congress shut down the government, one of the many programs caught up in the fracas was Temporary Aid for Needy Families (TANF), the program created by the 1996 welfare-reform law. Spending on the program is mandatory, and normally wouldn’t be a casualty of an appropriations fight like the one waged now. But the law officially expired three years ago. Instead of taking it up again, Congress has simply extended the last reauthorization with each new spending bill. No spending bill, no welfare program. The biggest way the ’96 reform law changed the program was by turning it into a block grant to states: Whatever the federal government appropriated for programs designed to help poor families, they would send it in chunks to state governments that were fairly free to decide how to spend it. TANF continues to provide cash benefits to some...

Five Reasons Food Stamps Work Just Fine

Melanie Stetson Freeman/The Christian Science Monitor L ast week, House Republicans passed a bill that would cut the food stamp program by about $40 billion over the next ten years. They’re drawing on headline numbers—the program serves about 47 million people each year and has the biggest price tag of any program in the farm bill, $80 billion—to drum up support. The aid, technically known as the Supplemental Nutrition Assistance Program, or SNAP, is still known as food stamps to nearly everyone who receives it. There’s little chance that the bill will be enacted, given the more moderate makeup of the Senate, although it’s likely that some cuts will end up on the president’s desk. (The Senate is cutting $4.4 billion from the program.) Still, food stamps are one of the most robust federal entitlements for the poor we have left, so it’s always going to be a target for cuts. It’s worth looking beyond those bold-face numbers in the news to see how the program is performing—and why it’s...

Playing Hunger Games with Food Stamps

When the House voted yesterday to cut $40 billion from the food-stamp program, they doubled the cuts the House had previously considered. The Congressional Budget Office estimates that 3.8 million people will be taken off the program, primarily because the House is removing some of the flexibility states have to meet the needs of their communities. They are restoring strict federal rules to the program. That’s an odd move for a bunch of Republicans. Most of the people who will be removed from the Supplemental Nutrition Assistance Program’s (SNAP) rolls are adults in high unemployment areas who don’t have children and can’t find jobs, and families with gross incomes that are slightly higher than the poverty line, but whose disposable incomes fall below it. These changes were introduced a few years ago to meet a rising need. The poverty line is low, and doesn’t take into account how much families spend on the costs of necessities like housing and childcare. More than half of all food...

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