The Poverty Myth: It’s not for a Lifetime

tbs-avalanche-12-2010-102.jpgWhen considering those in poverty it is far too common to think of them as perpetually poor and forever on the public dole. This sentiment has long existed and been perpetuated by claims of generational poverty; families that have nothing and leave nothing for their kids, thus creating a cycle that keeps the kids poor as adults and their kids raised in unrelenting poverty as well. These people are forever a burden on society and forever in need of our tax dollars being redistributed to them in the form of low or free rent, food stamps, medical care and more. Or so the myth goes…

While its true that many in poverty can stay poor for a significant portion of their lives, that’s often not the case. A 10+ year old study found that a significant percentage of those who were in the bottom third of income earners in the 1970s at some point over the following 20 years actually attained a level of income putting them in the upper third of income earners. This illustrates the point that those in poverty and receiving assistance are often only in that financially troubling position for a short time in their lives. 

This makes sense when you consider that many of those who are poor are young adults or young families who have not yet attained the wisdom, experience, resumes or income to keep them out of poverty. But as they age and gain work experience and the wisdom on how to earn and save money they lift themselves out of poverty and often into financial well-being.

The author taking a break at his 3rd radio job in 1986 when my income rose to the grandiose level of $1000 per month.

The author taking a break at his 3rd radio job in 1986 when my income rose to the grandiose level of $1000 per month.

This was certainly true for this author. I have worked in the radio industry for my entire adult life. I began professionally in 1985 as a 21 year old country music DJ and part-time high school sports play-by-play announcer. This auspicious position paid me the awesome sum of $600 per month. A little extra scrambling for more work usually got my check up to $650.00. And that was gross income, paid to me with only one pay check per month. I worked 50-60 hours per week, 6 days per week; thus not allowing me to hold a second job. I was poor. I didn’t qualify for food stamps. At the time I did apply and was told I made exactly $5.00 too much each month to qualify. I lived on Top Ramon, Mac & Cheese, and Cheerios. Oh…and beer. Priorities, right?

Twenty years later my income climbed to a level in 2004 where my earnings put me in the upper 2-3% of income earners. I owned a home, a rental property, and was raising a family. In 2005 I started my own business, Total Broadcasting Service.

Total Broadcasting owner Michael Schuett does most of the camera work provided to customers, both still and video.

Total Broadcasting owner Michael Schuett does most of the camera work provided to customers, both still and video.

And I’m not special. Lots of people can tell the same story.

The myth that poverty is a life sentence has two deleterious effects. If believed by some of those in poverty it helps keep them in need. It also discourages generous giving from many who could dramatically impact the lives of those in poverty. “Why give if these lazy, drug using poor people are only going to use my money to get drunk and high and buy tattoos and other frivolous expenses? I was poor and I lifted myself up. They should do the same.”…or so seems to be the thinking.

When its understood that poverty is more usually a temporary condition Americans can feel more comfortable generously offering a hand up while not seeing it as a hand-out. If someone is too young to have learned and earned you are more likely to see their potential and give them the assistance you probably benefitted from in your own youth. When its plain that a medical condition has prevented a person from working and they lost their income and haven’t yet found a means by which they will eventually support themselves, you can maintain a much higher level of empathy for their plight. Even when someone’s own poor decisions or foolishness have driven them to the poor house, you can feel a greater desire to help them get back to being self sustaining if you have the confidence of knowledge that most people in their positions will use your generosity wisely to change the direction of their lives and improve their situation.

My faith tells me that its my responsibility to help those in need. But if my faith (or yours) didn’t dictate charitable giving, common sense would. Few people, regardless of political persuasion, like the government’s gun to your head (otherwise known as the IRS) approach to monetary redistribution. And frankly its terribly inefficient anyway. But many non-profit charitable and church based organizations provide efficient and meaningful help to the needy. 

One of these organizations in my community is Emergency Feeding Program of Seattle and King County. I met it’s Director, Glenn Turner, this year. He carefully explained to me and others how EFP fills the gaps in food distribution for the needy. Food banks typically only provide food enough to last an individual or a family for 2-3 weeks per month. The obvious problem being that every month is at least 4 weeks. Emergency Feeding Program will help those who can’t provide for themselves over each month’s final 1-2 weeks with carefully constructed food bags tailored to the specific dietary and ethnic requirements of the recipient. They provide 15 different types of emergency food bags to match their clients. Emergency Feeding Program has been doing this since 1977, and are Washington State’s third largest food distribution service for the needy. And they do it through the generosity of people. They have many people who volunteer their time. And many generous people and organizations who donate food and money. You can help them too. And this writer hopes that you will.

Isn’t it easier to help knowing you are actually helping. Isn’t it best to look at those in poverty as merely folks who are down on their luck and with the kind and generous assistance you provide they won’t stay where they are; they’ll rise up support themselves and in the natural evolution of their lives help others; maybe even you, should you someday be a victim of misfortune, poor health or unfortunate decisions. 

We can’t and shouldn’t rely on government to carry us through. We’re a free nation. And we should be free to help those we want to help. And we should help. It’s in our best interest as well as the recipients of our generous money and efforts. 

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As an addendum: Emergency Feeding Program is hosting its first ever Summer musical event to raise awareness and donations. Jazz on the Houser will be from 3-9pm Saturday August 23rd. Click here to learn more: http://www.emergencyfeeding.org/events-wedge-details/354217/1408824000

The $15 Minimum Wage and the Mood of Voters

 

 

 

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UPDATE: Yesterday, as expected, the Seattle City Council unanimously approved a $15 per hour minimum wage in the city which will be put into place gradually. Most businesses will have to comply with the highest level minimum wage in the nation by 2017, smaller businesses have until 2021 to comply. 

The People’s Republic of Seattle government has once again ignored the ages old teachings of Adam Smith by considering a plan to increase the minimum wage of workers within the city limits to $15 per hour. If approved it would make Seattle’s minimum wage FAR higher than any other city or state in the country. San Francisco, that West Coast Liberal bastion, previously held such a proud distinction with a minimum wage of $10.55 per hour. Seattle’s plan doesn’t so much resemble the “invisible hand” as it does represent an iron fist.

In 1776 with his magnum opus “The Wealth of Nations” Scottish economist Adam Smith described the invisible hand as the means by which industrialized nations attained prosperity by government staying out of a free market economy and letting the “invisible hand” dictate prices of products and services as well as wages of workers.

I always felt that if a person doesn’t like making the minimum wage, whatever that wage might be, they should make themselves a more valuable commodity (i.e. worker). Put in the time to gain experience. Put in the effort to educate yourself. Develop a craft. Sell yourself. Upon making yourself more valuable a company will surely find use for you and compensate you in a fashion that makes your desire to work well and stay with that company heightened. Hiring and then training new personnel is expensive and time-consuming for businesses. As long as other outside factors aren’t driving the business owner they will tend to pay good or fair wages for a good staffer.

There is no question the move toward a higher minimum wage in Seattle and elsewhere in the country is rolling down hill and gaining momentum. There is also little argument that the $15 level proposed in Seattle and approved by voters in the small town of SeaTac, just south of Seattle, is completely arbitrary. There is no relevant data to suggest that $15 per hour is the sweet spot between fair and unfair wages. Why not make the minimum wage $20 per hour? Why not make it $13? For the record a worker earning $15 per hour, working 40 hours per week, and working 50 weeks per year would earn $30,000 per year. For the record the poverty rate for a single individual is $11,670 and $27,910 for a household of 5. Those making less than those figures would be eligible for Medicaid and CHIP (The Children’s Health Insurance Program). Is there anyone who couldn’t live fairly well on 30k annually? Trust me, I’m speaking from experience. I wonder how inspired you would be to improve yourself, educate yourself, grow your income if you weren’t so motivated to do so prior to being handed a wage that allows you to live as comfortably as $30k per year would allow you to work. Keep the hateful comments to yourself. I am not suggesting that $30k is a LOT OF MONEY.  Clearly it’s not for many people. But its a helluva lot for a 19-year-old high school dropout with no employment track record.

I also look at another bit of recent local, Washington State and Seattle, news being related to this subject. Last month King County voters rejected Proposition One to raise taxes to maintain current Metro bus service at existing levels. Ultra Liberal Seattle and King County voters rejected a tax increase to maintain, MAINTAIN, BUS SERVICE…a service that caters almost exclusively to people of lower-income. Seems like a contradiction of terms doesn’t it?

So what does this mean? Can we read the tea leaves and make a determination on our future? Seems to me the people of King County want and probably need more money in their pockets. Unemployment in Washington State has dropped to pre-recession levels of 6.1% in April. In the Seattle-Metro area the unemployment rate is 5%. The federal unemployment rate also hit new post recession lows last month. So…what gives? Higher taxes and lower wages is what gives. People are not thriving. They want more money.

I do not hold to the Libertarian point of view that there should be no minimum wage and government should stay out of it. Unfortunately so much government involvement already makes that dream completely unrealistic. Nonetheless a $30,000 minimum wage seems far beyond reasonable for someone handing out McCheeseburgers and fries. The minimum wage ought to be as low as possible; my suggestion would be $9.89 per hour to comply with the Federal standards of what constitutes poverty for a family of three. If you have a family of more than three and you make the minimum wage…learn to watch movies at night.

Any minimum wage law should include other requirements. It should be two-tiered. One minimum wage that’s lower for teenagers, and one that’s higher for adults. Teen unemployment nationwide is already at an incredible 19.1%. And keep in mind that only includes those who have previous employment in which to claim they are unemployed. The real number is MUCH MUCH higher. A $15 minimum wage, if universal, would grow teen unemployment to almost 100%. Such an occurrence would make saving for, or paying for college nearly impossible; subsequently putting more of a strain on Mom and Dad or simply denying a higher education to far too many deserving young people.

Another aspect of a very low minimum wage that I would like to see implemented is that it could only be used for a short period of time, perhaps 6-months or one year. Make it illegal to continue to employ someone at the minimum wage if they’ve proven their worth and the employer wants to keep them around. Naturally employers would know, or could be educated, that hiring and training a Newby would be more expensive and time-consuming than giving someone who was making minimum wage a well-deserved raise.

These ideas make sense in so many ways. Which is why they will never be implemented.

Thanks for visiting. Comments are welcome.

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