Poverty & Wealth

Food Stamps Get Licked by Cuts

AP Images/Carolyn Caster
This week, the Senate and House agriculture committees sent bills that would guide farming policy for the next five years to both legislative chambers for a vote. The vast majority of the legislation's outlined spending goes to a program that has proven a rich target for a Washington drunk on spending cuts—the food stamp program. The House bill would cut $20 billion over five years from the program’s $80 billion-a-year budget . The Senate's version would trim $4.4 billion from food stamps. The House bill gets most of its cuts by getting rid of program that allowed states to streamline the ways they provide assistance to the poor; the Senate bill would make changes to the program that would cut some people off food stamps.* In true bureaucratic fashion, the program has an unwieldy name: “Categorical Eligibility.” Conservative lawmakers call it “automatic eligibility” to make it sound as though people who aren’t poor are finding food stamp cards in their mailboxes. In reality, the...

The Upside Down Economy

AP Images/Scott Sady
AP Photo/Richard Drew O ne aspect that defines our current economy is that things are happening that shouldn’t be happening. I don’t mean that things are happening that are illegal or immoral. (Well, some of them are immoral, but that’s not what I mean.) Rather, things are happening that defy economic logic—a slippery term that really means, the economic patterns of roughly the past half-century. The first such logic-defying thing is that corporate profits are soaring even as corporate revenues limp along. The quarterly reports of S&P 500 corporations for the first three months of 2013 are almost entirely in now, and they show profits rising by more than 5 percent even while revenues have risen by less than 1 percent. Seventy percent of these companies—the largest publicly traded U.S. firms—exceeded the analysts’ profit projections. On the other hand, 60 percent came in under the projections for their sales. Were this disjuncture just a one-time epiphenomenon, we could pass it off...

Schneiderman Strikes Back

AP Photo/Carolyn Kaster
New York Attorney General Eric Schneiderman, who headed a group of state attorneys general that won homeowners and former homeowners a $26 billion settlement from five mega-banks over their foreclosure abuses, announced yesterday that he’d sue two of the banks—Wells Fargo and Bank of America—for allegedly violating the terms of the settlement. The February 2012 settlement with those two banks, as well as JP Morgan Chase, Citibank, and Ally Financial (formerly GMAC), had required the banks to adhere to a set of standards that would end the kind of abuses that had led to wholesale foreclosures of homes when they could have worked out alternative arrangements with the homeowners. Some of those standards—such as requiring the banks to notify struggling homeowners within five days that they had received the documents required to modify mortgages—sound so obvious they shouldn’t have needed to be codified, yet it was precisely such practices that the banks had repeatedly shunned. Homeowner...

Why Kids Still Can't Have It All

AP Photo/The Hutchinson News, Travis Morisse
AP Photo/The Star, Bill Wilson W hen Anne Marie Slaughter launched the latest battle in the Mommy Wars with her Atlantic cover story “ Why Women Still Can’t Have It All ,” which inspired a barrage of features about retro wives—young, high-achieving professionals leaving their careers to take care of children at home—the subtext was that work often isn’t worth it for women. Not only do women face real barriers to advancement, but their paychecks barely cover the cost of child care. Quality child care costs more in most states than tuition at public universities. In 22 states and D.C., the average cost of infant care in a center was more than the median rent in 2012. For low-income families, the costs are extreme, and the quality of providers is effectively unregulated. In a recent cover story for The New Republic , Jonathan Cohn wrote about an extreme case in which the proprietor of a daycare center in Houston left children at home while food was cooking on the stove; four children...

How Unions Are Getting Their Groove Back

flickr/ Chris Dilts
Yesterday—April 24th — was a red-letter day in the annals of worker mobilization in post-collective-bargaining America. In Chicago, hundreds of fast-food and retail employees who work in the Loop and along the Magnificent Mile called a one-day strike and demonstrated for a raise to $15-an-hour and the right to form a union. At more than 150 Wal-Mart stores across the nation, workers and community activists called on the chain to regularize employees’ work schedules. And under pressure from an AFL-CIO-backed campaign of working-class voters who primarily aren’t union members, the county supervisors of New Mexico’s Bernalillo County voted to raise the local minimum wage. The Chicago demonstration, which began in the dawn’s early light of 5:30 a.m., included workers at McDonald’s, Dunkin’ Donuts, and Subway, as well as Macy’s, Sears, and Victoria’s Secret, all of whom make the state minimum wage ($8.25) or just slightly more. Roughly one-third of the jobs in Chicago are low-wage, and...

The Fed’s Foreclosure-Relief Fail

AP Photo/Paul Sakuma, File
AP Photo/Don Ryan L ike far too many Americans, Debbie Marler of South Point, Ohio has her own foreclosure horror story. It involves one house, seven fraudulent mortgage assignments, three foreclosures, as many states, and five years. It ruined her career prospects, threatened her retirement security, and turned her life into what she calls “a living nightmare.” This week, Debbie walked to her mailbox and found what the federal government considers appropriate compensation for this odyssey of suffering at the hands of JPMorgan Chase, the nation’s largest bank. A check for $800. “I was speechless, just a complete shock,” Debbie said. “That doesn’t even pay for the damn U-Haul from when I moved out of the house in the first place.” The money is a product of the Independent Foreclosure Reviews, part of an enforcement action against 14 banks for crimes committed in the foreclosure process. The IFRs, shepherded by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve...

I Want Your Tax

Flickr/soukup
Today is tax day, the yearly opportunity for millions of Americans to shake their fists at the government and declare their contempt for the ideas of mutual concern and collective responsibility. So on this most practical of days, it's good to remind ourselves of some realities. First, the taxes we pay are, by international standards, fairly modest. Second, despite what some would have you believe, the wealthy are not crushed by the burden of taxation. And third, though nobody particularly enjoys giving part of their income to the government, taxes are the price we pay for having an advanced, democratic society. If you like living in a place where you aren't afraid of foreign invasion, if you like knowing that when you retire you'll get Medicare and Social Security, if you like living in a country with parks and roads and police and air traffic controllers and a legal system and food inspectors and water and sewage systems and schools and a thousand things you weren't thinking about...

Mr. Brooks’s Planet

Josh Haner/The New York Times
Since New York Times columnist David Brooks is the very model of the sentient conservative, his acknowledgements of social reality are often more than just personal—they signal that a particular state of affairs has become incontestable to all but the epistemically shuttered. Writing today on President Obama’s new budget, Brooks applauds the president for proposing to reduce Social Security and Medicare payments, and wishes he’d boost spending on discretionary spending programs that might stem the collapse of working- (and much of middle-) class America. Conservatives generally—over to you, Charles Murray—now acknowledge that the American working class, very much including the white working class, is imploding, citing the decline in marriage rates and out-of-wedlock births. They note as well that incomes and labor force participation are tanking, too. But they usually resist the idea that there’s a causal link between the lack of economic opportunity and the decline in the number of “...

Where's the Change?

AP Photo/Lauren Victoria Burke
AP Photo/Alex Brandon, File T he Democratic Party’s long-term prospects have dramatically improved since the November election. They will control the White House for another four years. The Republicans, who lost the total vote for the House of Representatives, remain captive of an unpopular reactionary right wing. The “Obama Coalition” of minorities and single women is growing faster than the GOP’s white male base. If demography is destiny, Democrats—and the progressive interests that they are supposed represent in the two-party system—are the wave of the future. But the American dream is about upward mobility. Ultimately, “The economy, Stupid” trumps identity politics. If the Democrats are not the champions of expanding jobs and incomes for the majority of voters who work for a living—whatever their gender, color, or sexual orientation—their claim to being the natural majority party will amount to little. So it made political sense that Barack Obama began his 2013 State of the Union...

Why Politicians Aren't Sensitive to Public Opinion on the Economy

Flickr/Alex E. Proimos
Flickr/Alex E. Proimos Who says American politics is gridlocked? A tidal wave of politicians from both sides of the aisle who just a few years ago opposed same-sex marriage are now coming around to support it. Even if the Supreme Court were decide to do nothing about California’s Proposition 8 or DOMA, it would seem only matter of time before both were repealed. A significant number of elected officials who had been against allowing undocumented immigrants to become American citizens is now talking about “charting a path” for them; a bipartisan group of senators is expected to present a draft bill April 8. Even a few who were staunch gun advocates are now sounding more reasonable about background checks. It’s nice to think logic and reason are finally catching up with our elected representatives, but the real explanation for these changes of heart is more prosaic: public opinion. The latest ABC News/Washington Post poll finds support for marriage equality at the highest in the ten...

The Runaways

Flickr/Kymberly Janisch
Flickr/ Kymberly Janisch T he first time Breanna found herself homeless, she’d left her mom’s house when she was 12 because her stepdad didn’t like her and her mom never took her side in fights. That had left her sharing a room in a Motel 6 with her father and sick grandmother near her high school in Jefferson County, Colorado. A short, slim, dark-haired Latina, she’d grown up in the area, and most of her family was there; it’s where she felt at home. In the motel, though, her dad, who was a drug addict, would occasionally beat her. “My Grandma would tell him I deserved it,” Breanna says. “I never understood why I deserved it.” Sometimes her father kept Breanna out of school because she had bruises on her arms and he didn’t want the abuse reported to authorities; sometimes Breanna missed school because she was too tired to wake up. When she finally wanted to leave for good, her father said he wouldn’t let her go unless she peed in a cup for him so he could pass a drug test; she agreed...

The Weeklies

Flickr/Steve Schroeder
Flickr/Steve Schroeder F rom the outside, it is hard to know that people live in the Ramada Inn. The parking lot is always empty. The hotel sits facing a wide suburban boulevard called Kipling Street, just off Interstate 70 in Wheat Ridge, Colorado. The interchange where Kipling meets the freeway is packed mornings and evenings with daily commuters going to or coming from Denver and with skiers heading west into the Rockies. Hotels dot I-70 as it cuts through the 764-square-mile stretch of suburbia that runs from the city into the mountains, but at the intersection with Kipling is a cluster of seven budget-savers that travel websites warn tourists away from. The hotels advertise low prices—ranging from $36 to $89 a night—on neon signs next to gigantic flags that whip in the Front Range wind. Most offer even lower weekly or monthly rates. The Ramada is farther from the frontage road than the other hotels and is harder to notice, with its plain yellow stucco and dimly lit red sign...

Take Social Security and Medicare Off the Bargaining Table

Flickr/Adam Fagen
P rominent Democrats—including the president and House Minority Leader Nancy Pelosi—are openly suggesting that Medicare be means-tested and Social Security payments be reduced by applying a lower adjustment for inflation. This is even before they’ve started budget negotiations with Republicans—who still refuse to raise taxes on the rich, close tax loopholes the rich depend on (such as hedge-fund and private-equity managers’ “carried interest”), increase capital gains taxes on the wealthy, cap their tax deductions, or tax financial transactions. It’s not the first time Democrats have led with a compromise, but these particular pre-concessions are especially unwise. For over thirty years Republicans have pitted the middle class against the poor, preying on the frustrations and racial biases of average working people who can’t get ahead no matter how hard they try. In the Republican narrative, government takes from the hard-working middle and gives to the undeserving and dependent needy...

Cyprus's Big Bluff

AP Photo/Petros Karadjias
The Cyprus banking crisis presents, in microcosm, everything that is perverse about the European leaders’ response to the continuing financial collapse. And bravo to the Cypriot Parliament for rejecting the EU’s insane demand to condition a bank bailout on a large tax on small depositors. If this crisis threatens to spread to other nations, it’s a good object lesson. Here is the punch line of this column: It's time for Europe’s small nations, who are getting slammed into permanent depression by the arrogance of Berlin and Brussels, to think about abandoning the euro. At least the threat would strengthen their bargaining position, and if they actually quit the euro, the result could hardly be worse than their permanent sentence to debtors’ prison. More on that in a moment. The back story: Cyprus, with just over a million people, is not a poor country. Its per capita GDP is actually above the European Union average. Cyprus has only used the euro since 2008. Once Cyprus was in the...

The Making of the "Other" Chicago

AP Photo/M. Spencer Green
AP Photo/M. Spencer Green A makeshift memorial at the site where 6-month-old girl Jonylah Watkins and her father, a known gang member, were shot on March 11. The girl, who was shot five times, died Tuesday morning. Her father, Jonathan Watkins, remains in serious but stable condition. J anuary was the deadliest month in Chicago in more than a decade. Forty-two people lost their lives on the city’s streets, most of them to gun violence. For 2012, the total number of homicides was 509, of which 443 involved firearms. While most of the shootings could be attributed to gang feuds, innocent people were caught in crossfire that often erupted in broad daylight and on public streets. Hadiya Pendleton’s shooting death, which took place only a week after the 15-year-old honors student performed at the presidential inauguration, is the latest tragedy to reinforce the perception that Chicago is the murder capital of the nation. Pendleton was killed when a gunman opened fire on a group of high-...

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