In his first State of the Union speech in 1964, President Lyndon B. Johnson declared a 'War on Poverty' and launched an extraordinary range of welfare programs. He had the moral foresight to challenge the country to be its best.

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Today America seems to have declared war on the poor. The US is now the most unequal society among developed countries.

In 2012, more than 46 million Americans live in poverty. Twenty-two percent are children. The gap in test scores between affluent and low-income school students has grown by 40 percent since the 1960s and is now double the testing gap between blacks and whites. The minimum wage is half the amount considered necessary to cover basic living expenses and save for retirement and emergencies.

Americans are extraordinary hardworking and some of the lowest paid give the most gracious service. Yet those at or below the poverty line are often depicted by politicians and others as undeserving shirkers. Welfare programs are depicted as benefitting minorities. But Lyndon Johnson’s major focus initially was to alleviate poverty among poor whites in Appalachia. Nation-wide, there are far more poor whites than poor blacks.

The subject of poverty is notably absent from current political discourse by both parties. There is also a high level of hypocrisy and denial. The New York Times notes that even critics of the so-called 'safety net' increasingly depend on it. In fact, poor households no longer receive a majority of government benefits. Middle class Americans, many of whom decry government overspending and 'handouts', count on Social Security, Medicare, student grants, as well as numerous other benefits.

Why does America have such difficulty in getting to grips with poverty? In Jeffrey Sach’s 2008 book, Common Wealth, Economics for a Crowded Planet, he cites Alberto Alesina and other economists whose work shows that social spending trends tend to be highest where social and racial cleavages are the smallest. Alesina writes: 'Racial discord plays a critical role in determining beliefs about the poor…Across countries, racial fragmentation is a powerful predictor of redistribution. With the US, race is the single most important predictor of support for welfare.'

Sachs adds: 'In the end, the social-welfare model relies on a form of trust. It seems that people are more willing to withstand high rates of taxation if they know that their taxes are paying for programs that help people like them.' It is important, he says, that citizens identify with beneficiaries of government programs. 'They are less likely to do so if socioeconomic divisions coincide with racial or ethnic divisions. This is the central point. The costs of racism are great.'

Another factor is that the US has developed an increasingly low-wage economy. One commentator writes that 'our whole economic system depends on paying people less than what they are worth.' Consumer demand for inexpensive products, the obsession with short-term profits by corporations, and the predatory behavior of the financial community has devastated America’s manufacturing sector, once the source of solid blue collar jobs. The relentless pressure caused by outsourcing means that the median male American worker earns less today, adjusting for inflation, than he did thirty years ago.

Yet, even with the current high level of unemployment, many companies are having difficulty finding skilled labor. America urgently needs to restructure education to teach technical skills needed in the 21st century.

We must recognize that we are all in this together. As Elizabeth Warren who created President Obama’s financial watchdog agency says, ”There is nobody in this country who got rich on his own — nobody. You built a factory out there? Good for you. But I want to be clear. You moved your goods to market on the roads the rest of us paid for. You hired workers the rest of us paid to educate. You were safe in your factory because of police-forces and fire-forces that the rest of us paid for….you built a factory and it turned into something terrific, or a great idea. God bless — keep a big hunk of it. But part of the underlying social contract is, you take a hunk of that and pay forward for the next kid who comes along.”

Each of us must do our part. Are we willing to pay a few cents more for our hamburger so that the person who serves us can earn a living wage? Are those of us (like me) nearing retirement age ready to contribute more for our benefits so that future generations can enjoy them? Will affluent suburbanites welcome mixed-income housing and support public transportation so that inner city residents can reach the new jobs? Will all of us, including the wealthiest, support the needed investment in our schools and vital national infrastructure?

I firmly believe that our political leaders underestimate Americans’ capacity for unselfish choices. Pandering to the baser instincts of fear or resentment does an injustice to the generosity and good sense of this country.

In Fresno, California, a city with extremes of wealth and poverty and where schools face painful budget choices, the school superintendent reduced his annual salary from $250,000 to $31,000. He said, 'My wife and I thought, what can we do that might help change the dynamic in my particular area?'

Initiatives of Change has a long history of inspiring people of all backgrounds to live selflessly. 'If everyone cares enough and everyone shares enough, everyone will have enough,' has been its philosophy. In 1935, my dad, who experienced poverty and unemployment, was inspired by an industrialist who chose to downsize his home rather than downsize his workforce during the Depression.

In Richmond, Virginia, Hope in the Cities has launched 'Unpacking the 2010 Census: the new realties of race, class and jurisdiction.' Forty community facilitators are at work using a powerful presentation to highlight the dramatically changing landscape of human need and to stimulate honest conversation about policy options to address poverty and structural inequity.

America moved towards racial desegregation in part because it was seen as a national security issue. We could not offer credible leadership to a world moving out of colonialism while continuing to discriminate at home. Today, America’s greatest security threat is not terrorism. It is the growing economic inequality and the mistrust caused by the collapse of the social contract of a fair day’s work for a fair day’s wage, along with a sense of shared sacrifice for our national community. Initiatives of Change must work to encourage a new sense of shared responsibility and to restore this trust.

Rob Corcoran is the National Director of Initiatives of Change and founder of Hope in the Cities.

NOTE: Individuals of many cultures, nationalities, religions, and beliefs are actively involved with Initiatives of Change. These commentaries represent the views of the writer and not necessarily those of Initiatives of Change as a whole.

Comments

Just on the point!

Thanks for being always so honest about USA - for us Latin American and maybe for most the world, see the US challenges in pure mode is half sad half inspiring, because you just went to the point many people want to talk about: to receive individually less to have collectivelly more. Such a difficult point to see reached even in IofC work. Let's pray for real change.

Food for thought!

Fascinating article, Rob. Very informative.

In the UK we have the extraordinary situation that many families would be financially better off if they stopped working. Doctors, who are among the most highly paid of 'workers', are considering 'industrial action' because they are being asked to take a reduced pension benefit. High bankers' bonuses (which don't seem to be related to achievement) are a scandal. Our Chancellor (Minister of Finance) would like to abolish the top rate of income tax (50% for those earning more than £150,000 per annum) yet many families are struggling to survive on far smaller incomes and would be helped significantly if the tax threshold were raised. As you say, there needs to be a change of culture whereby 'need' not 'greed' shapes policy, and individual choices.

'The Great God Growth' as it has been called, is actually unsustainable on a planet of finite resources. Sooner or later, we all need to face that fact and change our expectations. Companies whose only aim is to increase profits year on year are doomed to failure long-term, unless we are happy to see a few 'succeed' and put the rest out of business. 

Of course, the other issue which you don't touch on, is how we achieve a fairer global distribution of resources.

Much food for thought!

Many thanks for this thoughtful piece

For many like me in Europe, the US remains something of a mystery. Of course there are political quarrels and divides here too, but there seems to be some basic consensus between left and right that none of us want to accept too great a divide between rich and poor. On tricky issues like health care, we would be ashamed if in the midst of such wealth, so many of our fellow citizens were getting poor, late or non-existent health care. The overall outcomes in the US are just so shabby. And yet so many Americans seem to regard Europe as a dysfunctional hell-hole of crypto-communist policies... If only we could all learn from the best of each other...

poverty

I am in a tight spot and see the wisdom of this article...

IofC in Brief

Who we are: Initiatives of Change (IofC) is a world-wide movement of people of diverse cultures and backgrounds, who are committed to the transformation of society through changes in human motives and behaviour, starting with their own.

 

Purpose: We work to inspire, equip and connect people to address world needs, starting with themselves, in the areas of trustbuilding, ethical leadership and sustainable living.

Omnia Marzouk, President, IofC International
'Nothing lasting can be built without a desire by people to live differently and exemplify the changes they want to see in society.'