The 8 Groups in America That Are the Most Harmed by The Economy

Alternet, Sept. 1, 2013
By Paul Buchheit

Are political and corporate leaders even remotely aware of the conditions of society beneath the wealthiest 10% or so?
Photo Credit: Shutterstock.com/Portokalis

We live in a society that allows one man to make $15 million a day while a low-income mother gets $4.50 a day for food, and much of Congress wants to cut the $4.50.
Are political and corporate leaders even remotely aware of the conditions of society beneath the wealthiest 10% or so?
The following are some of the victims of an economic system that has forgotten the majority of its people.
Children
One out of every five American children now lives in poverty, and for black children it’s nearly one out of TWO. Almost half of food stamp recipients are children.
UNICEF places us near the bottom of the developed world in the inequality of children’s well-being, and the OECD found that we have more child poverty than all but 3 of 30 developed countries. It’s rather embarrassing to view the charts.
Students
Over the last 12 years, according to a New York Times report, the United States has gone from having the highest share of employed 25- to 34-year-olds among large, wealthy economies to having among the lowest. The number of college grads  working for minimum wage has doubled in just five years.
Higher education was cut by nearly $17 billion in the years leading up to 2012-13. Through those same years large corporations were avoiding about $14 billion annually in taxes. To make up the difference, students face tuition costs that have risen almost ten times faster than median family income, leading them into their low-wage post-college positions with an average of $26,000 in student loan debt.
The Elderly
Three-quarters of Americans approaching retirement in 2010 had an average of less than $30,000 in their retirement accounts. The percentage of elderly (75 to 84) Americans experiencing poverty for the first time doubled from 2005 to 2009.
The folly of cutting Social Security is reflected in two facts. First, even though Social Security provides only an average benefit of $15,000, it accounts for 55 percent of annual income for the elderly. And second, seniors have spent their working lives paying for their retirement. According to the Urban Institute the average two-earner couple making average wages throughout their lifetimes will receive less in Social Security benefits than they paid in. Same for single males. Almost the same for single females.
Wage Earners
Workers have 30% LESS buying power today than in 1968. If the minimum wage had kept up with employee productivity, it would be $16.54 per hour instead of $7.25.
Almost unimaginably, conditions for workers have gotten even worse since the recession. While 21 percent of job losses since 2008 were considered low-wage positions, 58 percent of jobs added during the recovery were considered low-wage.
As for members of Congress who say “get a job,” only one of them was present at the start of a recent unemployment hearing.
The Sick and Disabled
Over 200 recent studies have confirmed a link between financial stress and sickness. In just 20 years America’s ranking among developed countries dropped on nearly every major health measure. Victims suffer both physically and mentally. A recent study found that unemployment, whether voluntary or involuntary, can significantly impact a person’s mental health. Even grimmer, from 1999 to 2010 the suicide rate among Americans ages 35 to 64 increased by almost 30 percent.
In the long run, the only Americans to increase their life expectancy have been seniors covered by Medicare.
Women
Recent figures from the Bureau of Labor Statistics reveal that women earn just 80% of men’s pay. In Washington, DC and California, Hispanic women make only 44 cents for every dollar made by white men. The only deviation from the norm is that in 47 of 50 large metropolitan areas, well-educated single childless women under 30 earn more than their male counterparts.
But the overall disparities have worsened since the recession, with only about one-fifth of new jobs going to women, and with median wealth for single black and Hispanic women falling to a little over $100. And there’s no respite with advancing age. The average American woman’s retirement account is 38 percent less than a man’s, and women over 65 have twice the poverty rate of men.
Minorities
The Economist states: Before the 1960s… most blacks were poor, few served in public office and almost none were to be found flourishing at the nation’s top universities, corporations, law firms and banks. None of that is true today.
Wrong. Much of that is true today. According to the Economic Policy Institute (EPI), median wealth for black families in 2009 was $2,200, compared to $97,900 for white families. (Pew Research reported $5,677 for blacks, $113,149 for whites). EPI said median financial wealth (stocks, etc.) was $200 for blacks, compared to $36,100 for whites.
Since the recession, black and Hispanic wealth has dropped further, by 30 to 40 percent, while white family wealth dropped 11 percent.
Blacks and Hispanics, with 29% of the population, are also severely under-represented on corporate boards and in higher education.
One of the reasons it’s so hard for young blacks to be successful is that they’re viewed as criminals by many white authority figures. In  The New Jim Crow, Michelle Alexander documents the explosion of the prison population for drug offenses, with blacks and Hispanics the main targets even though they use drugs at about the same — or lesser — rate as white Americans.
The Homeless
The super-rich want homeless people to get jobs. But they don’t want to pay taxes to support job creation. If the richest Americans – the Forbes 400 – had paid a 5% tax on their 2012 investment earnings, enough revenue would have been generated to provide a full-time minimum wage job for  every person who was homeless in America on a January night in 2012.
Instead, it keeps getting worse for the homeless. North Carolina made it a crime to feed them. Columbia, South Carolina approved a plan to remove them. Tampa, Florida passed a law that makes it a crime for them to sleep in public.
So who’s left after all this? Oh yes, rich white men.

The Rich Get Richer Through the Recovery

N.Y. Times, Sept. 11, 2013

By ANNIE LOWREY

The top 10 percent of earners took more than half of the country’s total income in 2012, the highest level recorded since the government began collecting the relevant data a century ago, according to an updated study by the prominent economists Emmanuel Saez and Thomas Piketty.
The top 1 percent took more than one-fifth of the income earned by Americans, one of the highest levels on record since 1913, when the government instituted an income tax.
The figures underscore that even after the recession the country remains in a new Gilded Age, with income as concentrated as it was in the years that preceded the Depression of the 1930s, if not more so.
High stock prices, rising home values and surging corporate profits have buoyed the recovery-era incomes of the most affluent Americans, with the incomes of the rest still weighed down by high unemployment and stagnant wages for many blue- and white-collar workers.
“These results suggest the Great Recession has only depressed top income shares temporarily and will not undo any of the dramatic increase in top income shares that has taken place since the 1970s,” Mr. Saez, an economist at the University of California, Berkeley, wrote in his analysis of the data.
The income share of the top 1 percent of earners in 2012 returned to the same level as before both the Great Recession and the Great Depression: just above 20 percent, jumping to about 22.5 percent in 2012 from 19.7 percent in 2011.
That increase is probably in part due to one-time factors. Congress made a last-minute deal to avoid the expiration of all of the Bush-era tax cuts in January. That deal included a number of tax increases on wealthy Americans, including bumping up levies on investment income. Seeing the tax changes coming, many companies gave large dividends and investors cashed out.
But the economists noted that the trends looked the same for income figures including and excluding realized capital gains — implying that the temporary tax moves were not the only reason the top 1 percent did so well relative to everyone else in 2012.
More generally, richer households have disproportionately benefited from the boom in the stock market during the recovery, with the Dow Jones industrial average more than doubling in value since it bottomed out early in 2009. About half of households hold stock, directly or through vehicles like pension accounts. But the richest 10 percent of households own about 90 percent of the stock, expanding both their net worth and their incomes when they cash out or receive dividends.
The economy remains depressed for most wage-earning families. With sustained, relatively high rates of unemployment, businesses are under no pressure to raise their employees’ incomes because both workers and employers know that many people without jobs would be willing to work for less. The share of Americans working or looking for work is at its lowest in 35 years.
There is a glimmer of good news for the 99 percent in the report, though. Mr. Piketty and Mr. Saez show that the incomes of that group stagnated between 2009 and 2011. In 2012, they started growing again — if only by about 1 percent. But the total income of the top 1 percent surged nearly 20 percent that year. The incomes of the very richest, the 0.01 percent, shot up more than 32 percent.
The new data shows that the top 1 percent of earners experienced a sharp drop in income during the recession, of about 36 percent, and a nearly equal rebound during the recovery of roughly 31 percent. The incomes of the other 99 percent plunged nearly 12 percent in the recession and have barely grown — a 0.4 percent uptick — since then. Thus, the 1 percent has captured about 95 percent of the income gains since the recession ended.
Mr. Saez and Mr. Piketty have argued that the concentration of income among top earners is unlikely to reverse without stark changes in the economy or in tax policy. Increases that Congress negotiated in January are not likely to have a major effect, Mr. Saez wrote, saying they “are not negligible, but they are modest.”
Mr. Saez and Mr. Piketty, of the Paris School of Economics, plan to update their data again in January, after more complete statistics become available.

EPA Awards 2013 Environmental Justice Small Grants

[Posted by Bill Allen]
WASHINGTON – Today, the U.S. Environmental Protection Agency (EPA) announced a total of $1.1 million in competitive grants to 39 non-profit and tribal organizations working to address environmental justice issues nationwide. The grants will enable the organizations to develop solutions to local health and environmental issues in low-income, minority and tribal communities overburdened by harmful pollution.
“EPA’s Environmental Justice Small Grants are making a visible difference in communities across the country,” said EPA Administrator Gina McCarthy who announced the grants today. “These grants help build capacity, raise awareness, and equip communities with the tools to address environmental challenges – from climate change impacts to brownfields and water pollution. I’m proud to continue to promote these important grants and advance EPA’s long-term commitment to our community stakeholders.”
The 2013 grants support activities that address a range of community concerns such as reducing exposure to indoor environmental asthma triggers, restoring and protecting waterways, educating child care professionals on ways to prevent lead poisoning, and reducing pesticide use in child care facilities.
Environmental justice is defined as the fair treatment and meaningful involvement of all people, regardless of race or income, in the environmental decision-making process. Since 1994, EPA’s environmental justice small grants program has supported projects to address environmental justice issues in more than 1,400 communities. The grant awards represent EPA’s commitment to promoting community-based actions to address environmental justice issues.
In the fall of 2013, EPA will issue a Request for Proposals for the FY 2014 Collaborative Problem Solving Grants. A schedule of pre-application community stakeholder teleconference calls will be announced at that time.
2013 EJ Small Grant recipients and project descriptions: http://www.epa.gov/environmentaljustice/resources/publications/grants/ej-smgrants-recipients-2013.pdf
More information about EPA’s Environmental Justice Small Grants program: http://www.epa.gov/environmentaljustice/grants/ej-smgrants.html