By Jared Bernstein
September 15, 2014
Robert Samuelson covers some useful ground this morning, reviewing income and net worth trends from the recent Survey of Consumer Finances, a triennial (it comes out every three years) survey of family income and wealth. I wanted to add a few points regarding timing of the trends he cites.
In its violent crackdowns on demonstrations since a white police officer shot 18-year-old Michael Brown in early August, Ferguson police revealed a fresh proclivity for abusing its citizens. However, the city’s finances suggest the St. Louis suburb’s criminal justice system has been stealthily exploiting residents—particularly those who are black or poor—for years. Ferguson’s economy steadily withered over the last decade, as did its population. Yet even as the number of adult residents fell 11% between 2010 and 2013, fines collected by the city’s court system surged 85%, hitting $2.6 million last year.
In Pluto’s diary on the life of Michael Brown, you might notice one detail that’s both touching and disturbing:
Mike’s graduation photograph was taken in March 2014, still many months ahead of when he would be able to graduate in August. Imagine the “why” of this fact:
The grinding poverty in Mike’s world only allowed Normandy High School to acquire two graduation gowns to be shared by the entire class. The students passed a gown from one to the other. Each put the gown on, in turn, and sat before the camera to have their graduation photographs taken. Until it was Mike’s turn.
What kind of American school would have to share robes across the entire senior class? Continue reading UPDATED: It’s a miracle #MichaelBrown even graduated from this beleaguered school
Sometimes a single story has a way of standing in for everything you need to know. In the case of the up-arming, up-armoring and militarization of police forces across the country, there is such a story. Not the police, mind you, but the campus cops at Ohio State University now possess an MRAP; that is, a $500,000, 18-ton, mine-resistant, ambush-protected armored vehicle of a sort used in the war in Afghanistan and, as Hunter Stuart of the Huffington Post reported, built to withstand “ballistic arms fire, mine fields, IEDs and nuclear, biological and chemical environments.” Sounds like just the thing for bouts of binge drinking and post-football-game shenanigans.
Continue reading The Criminalization of Everyday Life | BillMoyers
Months after Chicago Mayor Rahm Emanuel said budget constraints forced him to push for pension cuts and mass school closures, an analysis of government documents reveals the city has $1.71 billion in special accounts often used to finance corporate subsidies. While the Emanuel administration has rejected open records requests for details of the subsidies, evidence suggests at least some of them have flowed to companies connected to Emanuel’s campaign donors.
The analysis conducted by the TIF Illumination Project evaluated the city’s 151 tax increment financing, or TIF, districts, which divert a share of property taxes out of accounts obligated to schools and into special accounts under the mayor’s control.
Continue reading Rahm Emanuel Cuts Schools, Pensions While Preserving Fund For Corporate Subsidies
US poverty (less than $19,090 for a family of three): 46.5 million people, 15 percent
Children in poverty: 16.4 million, 23 percent of all children, including 39.6 percent of African-American children and 33.7 percent of Latino children. Children are the poorest age group in the US
In August, Science published a landmark study concluding that poverty, itself, hurts our ability to make decisions about school, finances, and life, imposing a mental burden similar to losing 13 IQ points.
It was widely seen as a counter-argument to claims that poor people are “to blame” for bad decisions and a rebuke to policies that withhold money from the poorest families unless they behave in a certain way. After all, if being poor leads to bad decision-making (as opposed to the other way around), then giving cash should alleviate the cognitive burdens of poverty, all on its own. Continue reading Your Brain on Poverty: Why Poor People Seem to Make Bad Decisions | The Atlantic
African-Americans and white people struggled together during the civil rights era. We need that once again.
By Peter Edelman
Last week we celebrated the Civil Rights Act of 1964, the greatest and most important advance in civil rights legislation since Reconstruction. The week before we marked the horrible murders of James Chaney, Andrew Goodman, and Michael Schwerner in Mississippi, as part of a remembrance of the 1964 Freedom Summer.
We have to remember all of it. So many American children growing up today – even college and graduate students – know nothing of it. They have probably heard of Dr. King, but that’s about it.
We have to remember the murders and the lynchings just as we have to remember the Holocaust. History does repeat itself. There is no certain immunization against going backwards, but the best chance of preventing retrogression is to remember, to be vigilant, and to be ready to act when we see signs of it appearing. Continue reading It’s Time for a New Multiracial, Cross-Class Movement | Talk Poverty
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A CHINESE millionaire tried to give $300 (and lunch) to homeless men and women in New York last week. This didn’t sit well with the nonprofit New York City Rescue Mission. The Rescue Mission offered to help with lunch, but wouldn’t cooperate in handing out cash. So midway through a meal of sesame-crusted tuna and filet of beef, some 200 homeless people discovered that they would not be getting money. Instead, the Rescue Mission would accept $90,000 on their behalf. You can imagine the anger and humiliation. Continue reading CHRISTOPHER BLATTMAN: Let Them Eat Cash – NYTimes
By JOSEPH E. STIGLITZ
AN insidious trend has developed over this past third of a century. A country that experienced shared growth after World War II began to tear apart, so much so that when the Great Recession hit in late 2007, one could no longer ignore the fissures that had come to define the American economic landscape. How did this “shining city on a hill” become the advanced country with the greatest level of inequality?
One stream of the extraordinary discussion set in motion by Thomas Piketty’s timely, important book, “Capital in the Twenty-First Century,” has settled on the idea that violent extremes of wealth and income are inherent to capitalism. In this scheme, we should view the decades after World War II — a period of rapidly falling inequality — as an aberration.
This is actually a superficial reading of Mr. Piketty’s work, which provides an institutional context for understanding the deepening of inequality over time. Unfortunately, that part of his analysis received somewhat less attention than the more fatalistic-seeming aspects. Continue reading Joseph E. Stiglitz: Inequality Is Not Inevitable | NYTimes