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    These midterm elections have enormous stakes for poor and low-income Americans | Rev William Barber and Karen Dolan

    These midterm elections have enormous stakes for poor and low-income AmericansReverend William Barber and Karen DolanOur country faces a material and moral crisis – and Republicans are offering only resentment and false solutions Our wellbeing is on the ballot this November. Amid a pandemic, rising inflation, and deepening financial instability, we need a strong commitment from all candidates to our children, families and planet.In 2021, we won some of that commitment.Democrats need to address economic fears now – or risk losing their majorities | Robert ReichRead moreMembers of Congress – some of them – heard our voices. They made investments – from the expanded child tax credit to healthcare to infrastructure – that brought unemployment to historic lows and reduced child poverty to its lowest measure on record.Prior to the pandemic, the Poor People’s Campaign: a National Call for Moral Revival estimated that 140 million of us were poor and low-wealth. The American Rescue Plan and other investments brought that down to 112 million last year – a huge step forward.But even this help left one-third of us still living in serious economic hardship. Even worse, it was temporary. With those programs now expiring, and the cost of living continuing to climb, poverty is again on the rise.What have we learned? That poverty is a political choice. It drops when the government commits to reducing it. And it rises when that commitment vanishes.So the stakes for America’s poor and low-income families are huge this election.It’s not just social spending at stake. Climate disasters are becoming deadlier and costlier. Wars, supply chain issues and corporate price-gouging are sending inflation upward. And the democratic systems we need to fix these problems together are under threat themselves.We need our lawmakers to show moral leadership and take these crises seriously.The Republicans favored to take control of the House of Representatives have released a program they call the “Commitment to America”. We believe this document shows none of that moral leadership. Instead, it peddles in hollow resentment politicking and offers no alternatives to address real problems.To the contrary, this agenda seems to threaten the most effective anti-poverty programs we have – like social security and Medicare – with vague allusions to “fixing” and “personalizing” them. Coming from Republicans, terms like these usually mean privatization.Privatized healthcare helped big pharma and insurance companies make huge profits through the worst public health crisis in a century. And private takeovers of nursing homes increased both costs and deaths among Medicare patients using those facilities. What we need now is more public health care.And despite professing concern for our health, the Republican manifesto leaves out the fact that every Republican voted against affordable healthcare and reducing prescription drug prices.Meanwhile, the Republican program promises to increase our already obscene and ever-increasing Pentagon budget.We’ve already spent over $21tn over the past 20 years on war, policing, surveillance and border enforcement even as our healthcare, infrastructure and social programs have failed to keep up with need. The so-called “Commitment to America” would divert still more funding from children and families while ignoring that the greatest threat to the homeland is domestic terrorism.Finally, the “Commitment to America” promises still more tax cuts for corporations and the extremely wealthy. The 2017 Trump tax cuts for the rich are already on track to cost more than $2.2tn over the next decade. If they’re extended, they could cost $5.5tn – effectively taking away from programs that support our basic needs.Rather than its stated purpose, the Republican program is merely a commitment to corporate greed and private profit. These times call for a real “commitment to America” that moves us toward the promise of what we want to be. Toward a nation where the wellbeing of all of our children and families is guaranteed. A society where all workers have dignity and living wages, paid leave, healthcare, and the right to unionize.In this society, moral policies would lift the crushing burden of debt. They would ensure a robust democracy and our participation in the decisions impacting our daily lives. They would prioritize wellbeing over militarization and mass incarceration.This November, with one-third of the nation still struggling, we must come together and demand a real commitment to the wellbeing of our hardworking families from all candidates, not the revenge politics being served up by those who are unprepared to lead. We won’t be silent any more.
    The Rev Dr William J Barber II is a national co-chair of the Poor People’s Campaign: A National Call for Moral Revival
    Karen Dolan directs the Criminalization of Race and Poverty Project at the Institute for Policy Studies
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    ‘We’re in a moral crisis’: US faith leaders urge lawmakers to combat poverty

    ‘We’re in a moral crisis’: US faith leaders urge lawmakers to combat povertyCoalition gathers on Capitol Hill to deliver impassioned demand to improve life for low-income Americans A coalition of faith leaders gathered on Capitol Hill on Thursday to deliver an impassioned demand for more congressional action to combat poverty, telling lawmakers they have a moral obligation to improve life for low-income Americans.Indiana judge blocks enforcement of abortion ban passed by RepublicansRead moreThe faith leaders called on the Democratic leaders of the House and Senate to take at least three votes on major progressive issues before midterm elections in November.They emphasized the importance of putting lawmakers “on the record” about strengthening voting rights, raising wages and reinstating pandemic-era policies aimed at lifting families out of poverty.“We’re in a moral crisis,” said the Rev William J Barber II, co-chair of the Poor People’s Campaign (PPC). “The very soul of this democracy will implode if we don’t deal with these issues.”The press conference, organized by the group Repairers of the Breach, came one week after US census data indicated that the US child poverty rate fell by nearly half last year.Faith leaders warned that such progress made since the start of the coronavirus pandemic could be reversed if Congress does not act to extend policies like the expanded child tax credit, which provided monthly checks to millions of families. That program expired at the end of last year, when Democrats failed to pass the Build Back Better Act.“It’s important to note that these numbers are down based on an antiquated and inadequate poverty measure but also because of temporary relief from the child tax credit,” said Rev Dr Liz Theoharis, co-chair of the PPC.“The fact that that has not been extended, that it has not been expanded, that we haven’t seen the minimum wage raised, that we are still fighting for our voting rights means that millions upon millions of people’s lives are being cut short.”Dozens of faith leaders spoke, applauding the recent passage of the Inflation Reduction Act, Democrats’ healthcare and climate package, while lamenting that poverty-fighting policies were left out. They insisted Democrats must do more to help low-income families.“Our country is broken. People are suffering, and we must do better,” said Sheila Katz, chief executive officer of National Council of Jewish Women. “Let me be clear: it is a policy decision that millions of children are living in poverty. It is a policy decision that millions of families are living paycheck to paycheck.”With less than 50 days until the midterm elections, Democrats show few signs of progress on new anti-poverty legislation, as many incumbents turn their attention to re-election campaigns.Republicans are favored to take the House in November. If Republicans do so, any hope of extending the expanded child tax credit or restoring critical voting protections will vanish.“This is why we’re saying there has to be a vote before November,” Barber said. “We’re not afraid of losing. We’re afraid of the American people not knowing who stands where … And if you do it, you will see a massive turnout of low-income voters like you’ve never seen before.”Several progressive House members attended the press conference, reaffirming their commitment to helping those in poverty.But they acknowledged Democrats have had trouble advancing progressive policies in the evenly divided Senate, where Republicans have been able to filibuster proposals embraced by Barber and his allies.Two Democratic senators, Joe Manchin of West Virginia and Kyrsten Sinema of Arizona, have objected to proposals to amend the filibuster to help overcome Republican obstruction.“The political will oftentimes in the Senate, I have to say quite frankly, has not been there,” said Barbara Lee, a California congresswoman. “This is a numbers game here.”Lee pledged to keep working with allies like Barber to help lift Americans out of poverty and ensure a more equitable future.“We’re going to keep fighting until justice is done,” Lee told the faith leaders. “Have hope. You give us hope. You inspire us. And united we stand, divided we fall, but we’re going to keep standing and moving forward.”TopicsPovertyUS CongressUS politicsnewsReuse this content More

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    As Latin America Shifts Left, Leaders Face a Bleak Reality.

    All six of the region’s largest economies could soon be run by presidents elected on leftist platforms. Their challenge? Inflation, war in Europe and growing poverty at home.BOGOTÁ, Colombia — In Chile, a tattooed former student activist won the presidency with a pledge to oversee the most profound transformation of Chilean society in decades, widening the social safety net and shifting the tax burden to the wealthy.In Peru, the son of poor farmers was propelled to victory on a vow to prioritize struggling families, feed the hungry and correct longstanding disparities in access to health care and education.In Colombia, a former rebel and longtime legislator was elected the country’s first leftist president, promising to champion the rights of Indigenous, Black and poor Colombians, while building an economy that works for everyone.“A new story for Colombia, for Latin America, for the world,” he said in his victory speech, to thunderous applause.After years of tilting rightward, Latin America is hurtling to the left, a watershed moment that began in 2018 with the election of Andrés Manuel López Obrador in Mexico and could culminate with a victory later this year by a leftist candidate in Brazil, leaving the region’s six largest economies run by leaders elected on leftist platforms.A combination of forces have thrust this new group into power, including an anti-incumbent fervor driven by anger over chronic poverty and inequality, which have only been exacerbated by the pandemic and have deepened frustration among voters who have taken out their indignation on establishment candidates.During the height of a coronavirus wave in Peru last year, people waited to refill oxygen tanks for loved ones on the outskirts of Lima. Marco Garro for The New York TimesBut just as new leaders settle into office, their campaign pledges have collided with a bleak reality, including a European war that has sent the cost of everyday goods, from fuel to food, soaring, making life more painful for already suffering constituents and evaporating much of the good will presidents once enjoyed.Chile’s Gabriel Boric, Peru’s Pedro Castillo and Colombia’s Gustavo Petro are among the leaders who rode to victory promising to help the poor and disenfranchised, but who find themselves facing enormous challenges in trying to meet the high expectations of voters.Unlike today, the last significant leftist shift in Latin America, in the first decade of the millennium, was propelled by a commodities boom that allowed leaders to expand social programs and move an extraordinary number of people into the middle class, raising expectations for millions of families.Now that middle class is sliding backward, and instead of a boom, governments face pandemic-battered budgets, galloping inflation fed by the war in Ukraine, rising migration and increasingly dire economic and social consequences of climate change.In Argentina, where the leftist Alberto Fernández took the reins from a right-wing president in late 2019, protesters have taken to the streets amid rising prices. Even larger protests erupted recently in Ecuador, threatening the government of one of the region’s few newly elected right-wing presidents, Guillermo Lasso.“I don’t want to be apocalyptic about it,” said Cynthia Arnson, a distinguished fellow at the Woodrow Wilson International Center for Scholars. “But there are times when you look at this that it feels like the perfect storm, the number of things hitting the region at once.”Protesters in Santiago, Chile, in 2019, demanding economic changes to address systemic inequality. The country’s new president, elected last year, has become deeply unpopular among Chileans angry over rising prices.Tomas Munita for The New York TimesThe rise of social media, with the potential to supercharge discontent and drive major protest movements, including in Chile and Colombia, has shown people the power of the streets.Beginning in August, when Mr. Petro takes over from his conservative predecessor, five of the six largest economies in the region will be run by leaders who campaigned from the left.The sixth, Brazil, the largest country in Latin America, could swing that way in a national election in October. Polls show that former president Luiz Inácio Lula da Silva, a fiery leftist, has a wide lead on the right-wing incumbent, President Jair Bolsonaro.New leaders in Colombia and Chile are far more socially progressive than leftists in the past, calling for a shift away from fossil fuels and advocating for abortion rights at a time when the United States Supreme Court is moving the country in the opposite direction.But taken together, this group is extremely mixed, differing on everything from economic policy to their commitment to democratic principles.Mr. Petro and Mr. Boric have vowed to vastly expand social programs for the poor, for example, while Mr. López Obrador, who is focused on austerity, is reducing spending.What does link these leaders, however, are promises for sweeping change that in many instances are running headlong into difficult and growing challenges.Gustavo Petro and his running mate, Francia Márquez, celebrated their victory in June in Colombia’s national election. They will lead a country where 40 percent of the people lives on less than half of the monthly minimum wage.Federico Rios for The New York TimesIn Chile late last year, Mr. Boric beat José Antonio Kast, a right-wing establishment politician associated with Chile’s former dictator, Augusto Pinochet, by pledging to jettison the neoliberal economic policies of the past.But just months into his term, with an inexperienced cabinet, divided Congress, rising consumer prices and unrest in the country’s south, Mr. Boric’s approval ratings have plummeted.Ninety percent of poll respondents told the polling firm Cadem this month that they believed the country’s economy was stuck or going backward.Like many neighbors in the region, Chile’s yearly inflation rate is the highest it has been in more than a generation, at 11.5 percent, spurring a cost-of-living crisis.In southern Chile, a land struggle between the Mapuche, the country’s largest Indigenous group, and the state has entered its deadliest phase in 20 years, leading Mr. Boric to reverse course on one of his campaign pledges and redeploy troops in the area.Catalina Becerra, 37, a human resources manager from Antofagasta, in northern Chile, said that “like many people of my generation” she voted for Mr. Boric because Mr. Kast “didn’t represent me in the slightest.”Students taking part in an anti-government protest in June in Santiago.Javier Torres/Agence France-Presse, via Getty Images“But I wasn’t convinced by what he could do for the country,’’ Ms. Becerra added. “He has not achieved what he said he would.”In September, Chileans will vote on a remarkably progressive constitution that enshrines gender equality, environmental protections and Indigenous rights and that is meant to replace a Pinochet-era document.The president has bound his success to the referendum, putting himself in a precarious position should the draft be rejected, which polls show is for now the more likely outcome.In neighboring Peru, Mr. Castillo rose last year from virtual anonymity to beat Keiko Fujimori, a right-wing career politician whose father, former President Alberto Fujimori, governed with an iron fist and introduced neoliberal policies similar to those rejected by Chilean voters.While some Peruvians supported Mr. Castillo solely as a rejection of Ms. Fujimori, he also represented real hopes for many, especially poor and rural voters.As a candidate, Mr. Castillo promised to empower farmers with more subsidies, access to credit and technical assistance.But today, he is barely managing to survive politically. He has governed erratically, pulled between his far-left party and the far-right opposition, reflecting the fractious politics that helped him win the presidency.Supporters of Peru’s leftist presidential candidate Pedro Castillo during a protest against his rival’s effort to annul votes in 2021. Mr. Castillo won the election but is barely managing to survive politically. Marco Garro for The New York TimesMr. Castillo — whose approval rating has sunk to 19 percent, according to the Institute of Peruvian Studies — is now subject to five criminal probes, has already faced two impeachment attempts and cycled through seven interior ministers.The agrarian reform he pledged has yet to translate into any concrete policies. Instead, price spikes for food, fuel and fertilizer are hitting his base the hardest.Farmers are struggling through one of the worst crises in decades, facing the biggest planting season of the year without widespread access to synthetic fertilizer. They normally get most of it from Russia, but it is difficult to obtain because of global supply disruptions related to the war.Eduardo Zegarra, an investigator at GRADE, a research institute, called the situation “unprecedented.”“I think this is going to unfold very dramatically, and usher in a lot of instability,” he said.In a poor, hillside neighborhood in Lima, the capital, many parents are skipping meals so their children have more to eat.“We voted for Castillo because we had the hope that his government would be different,” said Ruth Canchari, 29, a stay-at-home mother of three children. “But he’s not taking action.”In Colombia, Mr. Petro will take office facing many of the same headwinds.President Gabriel Boric of Chile flashed a victory sign after his swearing-in ceremony at Congress in Valparaiso in March.Esteban Felix/Associated PressPoverty has risen — 40 percent of households now live on less than $100 a month, less than half of the monthly minimum wage — while inflation has hit nearly 10 percent.Still, despite widespread financial anxiety, Mr. Petro’s actions as he prepares to assume office seem to have earned him some support.He has made repeated calls for national consensus, met with his biggest political foe, the right-wing former president Álvaro Uribe, and appointed a widely respected, relatively conservative and Yale-educated finance minister.The moves may allow Mr. Petro to govern more successfully than, say, Mr. Boric, said Daniel García-Peña, a political scientist, and have calmed down some fears about how he will try to revive the economy.But given how quickly the honeymoon period ended for others, Mr. Petro will have precious little time to start delivering relief.“Petro must come through for his voters,” said Hernan Morantes, 30, a Petro supporter and environmental activist. “Social movements must be ready, so that when the government does not come through, or does not want to come through, we’re ready.”Julie Turkewitz More

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    Covid had devastating toll on poor and low-income communities in US

    Covid had devastating toll on poor and low-income communities in USPoor People’s Pandemic Report concludes that while virus did not discriminate between rich and poor, society and government did The devastating impact of the Covid-19 pandemic on poor and low-income communities across America is laid bare in a new report released on Monday that concludes that while the virus did not discriminate between rich and poor, society and government did.As the US draws close to the terrible landmark of 1 million deaths from coronavirus, the glaringly disproportionate human toll that has been exacted is exposed by the Poor People’s Pandemic Report. Based on a data analysis of more than 3,000 counties across the US, it finds that people in poorer counties have died overall at almost twice the rate of those in richer counties.Looking at the most deadly surges of the virus, the disparity in death rates grows even more pronounced. During the third pandemic wave in the US, over the winter of 2020 and 2021, death rates were four and a half times higher in the poorest counties than those with the highest median incomes.During the recent Omicron wave, that divergence in death rates stood at almost three times.Such a staggering gulf in outcomes cannot be explained by differences in vaccination rates, the authors find, with more than half of the population of the poorest counties having received two vaccine shots. A more relevant factor is likely to be that the poorest communities had twice the proportion of people who lack health insurance compared with the richer counties.“The findings of this report reveal neglect and sometimes intentional decisions to not focus on the poor,” said Bishop William Barber, co-chair of the Poor People’s Campaign which jointly prepared the research. “The neglect of poor and low-wealth people in this country during a pandemic is immoral, shocking and unjust.”The report was produced by the Poor People’s Campaign in partnership with a team of economists at the UN Sustainable Development Solutions Network (SDSN) led by Jeffrey Sachs. They have number-crunched statistics from more than 3,200 counties as a way of comparing the poorest 10% with the richest 10%.They then interrogate the interplay between Covid death rates and poverty, as well as other crucial demographic factors such as race and occupation.Until now the extent to which the virus has struck low-income communities has been difficult to gauge because official mortality data compiled by the Centers for Disease Control and Prevention (CDC) and elsewhere has not systematically factored in income and wealth information.The new report seeks to fill that gaping hole in understanding of the US pandemic. One of its most striking findings is that within the top 300 counties with the highest death rates, 45% of the population on average lives below the poverty line as defined as 200% of the official poverty measure.Sachs, a Columbia University professor who is president of the UN SDSN, said the findings underlined how the pandemic was not just a national tragedy but also a failure of social justice. “The burden of disease – in terms of deaths, illness and economic costs – was borne disproportionately by the poor, women, and people of color. The poor were America’s essential workers, on the frontlines, saving lives and also incurring disease and death.”The authors rank US counties according to the intersection of poverty and Covid-19 death rates. Top of the list is Galax county, a small rural community in south-west Virginia.Its death rate per 100,000 people stands at an astonishing 1,134, compared with 299 per 100,000 nationally. Median income in the county is little more than $33,000, and almost half of the population lives below the poverty line.Among the counties with punishingly high poverty and death rates is the Bronx in New York City, where 56% of the population is Hispanic and 29% Black. More than half of the borough lives under the poverty line, and the Covid death rate is 538 per 100,000 – within the highest 10% in the US.Racial disparities have been at the centre of the pandemic experience in the US. Early on it became clear that Black people and Hispanics in New York City, for instance, were dying of Covid at twice the rate of whites and Asians.The consequences of such racial inequity are still only now becoming visible. Last week a study in the journal Social Science & Medicine reached a disturbing conclusion.It found that when white Americans were informed through the media that Black Americans were dying at higher rates than their demographic group was, their fear of the virus receded and they became less empathetic towards those vulnerable to the disease. They were also more likely to abandon Covid safety precautions such as masks and social distancing.But low-income predominantly white communities are also in peril. Mingo county in West Virginia, for example, has one of the lowest income levels in the US following the collapse of coal mining and the scourge of the opioid epidemic.The county is 96% white, with over half its residents living below the poverty line. Its Covid death rate is 470 per 100,000 – putting it within the top quarter of counties in the nation for pandemic mortality.TopicsCoronavirusOmicron variantUS politicsInequalityPovertynewsReuse this content More

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    ‘We have failed’: how California’s homelessness catastrophe is worsening

    ‘We have failed’: how California’s homelessness catastrophe is worsening A new Guardian US series reports on a seemingly intractable crisis, and hears from those living on the edge in one of America’s richest statesWhen California shut down in March 2020, advocates for unhoused people thought the state might finally be forced to solve its homelessness crisis. To slow the spread of Covid, they hoped, officials would have to provide people living outside with stable and private shelter and housing.But in the two years since, California’s humanitarian catastrophe has worsened: deaths of people on the streets are rising; college students are living in their cars; more elderly residents are becoming unhoused; encampment communities are growing at beaches, parks, highway underpasses, lots and sidewalks. California has the fifth largest economy in the world, a budget surplus, the most billionaires in the US and some of the nation’s wealthiest neighborhoods. Yet the riches of the Golden State have not yielded solutions that match the scale of the crisis that’s been raging for decades. Pandemic-era programs have had some success for a slice of the unhoused population, but many measures have fallen short.Meanwhile, homelessness has become the top issue in political races. Polls in Los Angeles, which is home to 40% of the state’s unhoused population, suggest that a majority of voters want their governments to act faster, and that residents are angered by the immense human suffering caused by a seemingly intractable crisis. ​​Unhoused and unequal: a California crisis. The pandemic brought money, political will and public support to tackle California’s longstanding homelessness crisis. Instead, things got worse. In a new series, the Guardian’s west coast team reports from across the state, exploring what it would take to address a seemingly intractable problemIn response, governments across the state are increasingly cracking down on people sleeping outside. Out of the 20 largest cities in California, the majority have either passed or proposed new laws banning camping in certain places or have ramped up encampment sweeps. LA and Oakland passed laws meant to prohibit camping in certain zones; San Francisco’s mayor has pushed for a police crackdown on unhoused people using drugs in the Tenderloin neighborhood; Fresno adopted a law to fine people up to $250 for entering certain restricted areas; and Modesto, Bakersfield and Riverside are pushing to expand the number of park rangers in an effort to enforce anti-camping rules and related restrictions.Some unhoused people and civil rights activists warn that those escalating efforts to force people off the streets are only further hurting the most vulnerable.“We have failed in so many respects,” said Theo Henderson, a Los Angeles advocate for the unhoused, who was himself living outside until recently. “There are families with children living in automobiles. There are elderly and the infirm on the streets … It’s a dark time right now, and unhoused residents are very afraid.”‘Unacceptable’ numbersIn a new series that will be published over the next several months, Guardian US is examining California’s homelessness crisis across the state.While homelessness remains concentrated in major metro areas like Los Angeles, San Jose, the San Francisco Bay area and San Diego, communities from the north to the Mexico border are facing their own emergencies.Bar chart showing the 31% increase in California’s total unhoused population, largely driven by a 57% increase in those that are unsheltered, or living on the streets, since 2010.California counted 161,548 unhoused people in the state in January 2020, the most recent count data available. The count is a “point in time” estimate that tallies people living on the street or in shelters. Since it’s a rough snapshot of a single day, and doesn’t account for people who are hidden from public view or are unhoused but couch-surfing that night, it is considered a significant undercount.At least 113,660 of those counted were classified as “unsheltered”, making California home to more than half of all people without shelter in America and the only state where more than 70% of the homeless population is unsheltered (by comparison, just 5% of New York’s homeless population was unsheltered.A treemap area chart that shows California has up over 50% of the US’s unsheltered population.The consequences of so many people living outside are severe and fatal. In 2015, the LA county coroner’s office recorded 613 deaths of unhoused people. That number has steadily climbed each year, rising to 1,609 fatalities in 2021, a spokesperson said. Those figures are an undercount, because the coroner only tracks fatalities considered sudden, unusual or violent. A report by the University of California, Los Angeles last year estimated that overdoses were a leading cause of death of unhoused people during the pandemic.Deaths of unhoused people in LA county up 160% since 2015. Bar chart showing the increase in LA county unhoused deaths from 2015 to 2021.Data analyses have revealed other disturbing trends: one UCLA study estimated that at least 269,000 students from kindergarten to grade 12 in the state were experiencing homelessness before the pandemic; in LA county, Black residents were four times as likely to be unhoused; and also in LA, there was a 20% jump in the number of unhoused seniors, with nearly 5,000 elderly people living outside before Covid arrived.“It’s just not acceptable,” said Wendy Carrillo, a state assemblymember who represents parts of LA and chairs a budget committee on homelessness. As a kid, she would pass by Skid Row and struggle to understand why so many people were forced to live outside, she said. The crisis has grown since: “We’ve become so disconnected as a society, so cold to the issue that people are OK with stepping over someone who is passed out on the floor.”A $14bn investment – and a crackdown on campingCalifornia’s catastrophe stems in part from a longstanding, statewide housing affordability crisis. Californians spend significantly more of their income on housing compared with the rest of the nation. More than 1.5 million renters spend half of their earnings on rent, leaving them potentially one medical emergency or crisis away from homelessness. In recent years, income inequality has only worsened.UCLA research on the residents of one LA encampment found that people cited a range of factors that led them to become unhoused, including eviction, job loss, domestic violence, former incarceration, family conflict and low wages in gig economy jobs.Responding to the crisis, California is pouring billions of dollars into housing and related services, but the success of new programs meant to expand affordable housing and emergency shelter has been mixed.“One of the challenges of housing policy is that it’s like turning around a giant ship. It’s a slow process,” said Shamus Roller, executive director of the National Housing Law Project. The state has made significant progress in recent years in investing in housing, he noted, but the benefits can sometimes take more than a decade to materialize.There are also systemic and historical problems that housing programs can’t solve, including the loss of social safety nets, the dissolution of redevelopment programs, and a controversial state tax measure passed in 1978 that has created significant obstacles for new home ownership, Roller said.And some regions have invested more in temporary shelter programs than in permanent housing, making it hard for people to transition out of shelters, especially as the housing market worsens and as more people newly become unhoused, advocates said.Emblematic of the challenges is California’s signature homelessness response during the pandemic: Project Roomkey. The program temporarily provided motel rooms to an estimated 50,000 people living on the streets. But the program was administered at the local level and some counties fell short of their goals or failed to meet the demand in their regions; participants reported struggling to find housing after hotel stays ended and some returned to the streets because of the strict rules in the program, advocates said.This year, the California governor, Gavin Newsom, is pushing a $14bn investment in homelessness solutions, meant to create 55,000 new housing units and treatment slots. His Homekey initiative, the successor to Project Roomkey, allows local governments to buy motels to use as temporary or permanent housing for unhoused people. As of last week, the state has awarded $695m for more than 2,400 units.While the programs could be transformative for some participants, advocates worry their impact for many could come too late, especially with statewide eviction protections expiring at the end of the month and pandemic-era rent relief efforts winding down. Even with a partial eviction moratorium in place, sheriffs enforced lockouts of thousands of households in the first year of the pandemic, according to a CalMatters analysis.“We are getting a lot of calls from tenants who are being evicted,” said Jovana Morales-Tilgren, housing policy coordinator with Leadership Counsel for Justice and Accountability, a Central Valley-based organization. “A lot of undocumented folks don’t have the resources to battle an eviction notice … and then there are not enough shelters for the unhoused people.”Meanwhile, advocates warn, conditions for those living on the streets are only getting harder amid increasing restrictions on camping. A proposed state law would also allow courts to force some people with severe mental illness into treatment.The crackdown on tent living and fear of possible forced treatment can lead people to scatter into more hidden locations where it can be harder for them to access services and get into programs, advocates say.“Using law enforcement to respond to houselessness is both counterproductive and ineffective,” said Eve Garrow, policy analyst and advocate at the ACLU of Southern California. The expansion of criminalization was overwhelming, Garrow said. “And people are experiencing compassion fatigue, and they want something done. Local public officials are responding with what they see as ‘quick fixes’ that aren’t fixes at all and are completely misguided.”‘I don’t want to die on the streets’People living on the streets or in temporary shelters waiting for housing said they were worried and exhausted by the increasingly hostile rhetoric of politicians and communities.“Unhoused people are blamed for every social ill,” said Henderson, who regularly talks to unhoused residents on his podcast. “There’s an uptick in burglaries, and then the response is, ‘Can we get the unhoused removed?’ Every unhoused person has those stories – as soon as something happens, here comes the police looking at them as the prime suspect.”Kenneth Stallworth, who has been living in a group shelter since his Venice Beach encampment was shut down in a high-profile dispute last year, said he didn’t mind the shelter and appreciated the electricity, but also noted that he had seen several people die or have health emergencies in the facility.“The people are getting what they want,” he said of his fellow Angelenos. “The homeless are getting moved away from areas where there were the most complaints.”Dawn Toftee, 57, was living at an encampment near the stadium where the Super Bowl was held in LA last month, until she was forced to leave in advance of the big game. Officials said the residents were offered housing, but a month later, Toftee is camping down the street – and is still waiting for a housing voucher that could subsidize a rental.“I’m getting old and I don’t want to die on the streets,” she said, adding that she didn’t think officials cared whether people like her got housing: “They just want us out of eyesight.”TopicsCaliforniaUnhoused and unequal: a California crisisLos AngelesHomelessnessPovertyHousingUS politicsfeaturesReuse this content More

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    The uphill battle to resurrect the US child tax credit that lifted millions from poverty

    The uphill battle to resurrect the US child tax credit that lifted millions from poverty Monthly payments became a lifeline for many families, and their lapse had a devastating effect, but the policy seems to have no path forward in the SenateIf the negotiations over Democrats’ Build Back Better Act had gone differently, tens of millions of American families would have received checks on Tuesday. Instead, for the third month in a row, the monthly payments from the expanded child tax credit were not distributed.The monthly checks, which were approved last year as part of Joe Biden’s coronavirus relief package, had become a lifeline for many families struggling to financially recover from the pandemic. But the payments came to an end in December, after Democrats failed to pass their Build Back Better Act, which would have extended the policy.Those monthly payments helped temporarily lift millions of American children out of poverty, and the policy’s lapse has had a devastating effect. According to a report from Columbia University’s Center on Poverty and Social Policy, 3.7 million more American children were experiencing poverty in January, after the monthly payments ended. The increase was disproportionately high among Black and Latino children.Progressives have continued to advocate for the expanded credit, insisting an extension of the monthly payments should be included in any social spending package that Democrats can get through Congress.Progressive Democrats set out list of executive orders to push Biden agendaRead moreBut the policy appears to have no path forward in the evenly divided Senate, underscoring Democrats’ challenges in trying to advance Biden’s economic agenda. Some Democrats fear that failing to extend the expanded credit will further damage the party’s prospects in the midterm elections, making it more difficult for candidates to make a case for re-election to voters.The expanded tax credit was initially enacted through the American Rescue Plan, which Biden signed into law last March. The new policy increased the tax benefit from $2,000 a year to a maximum of $3,600 a year for children aged five or younger and a maximum of $3,000 a year for children between the ages of six and 17. The credit allowed families to collect half of the benefit through monthly checks, which were distributed between July and December of last year. The policy also made the tax credit fully refundable, meaning more low-income parents could access the funds. In December, the last month that the payments were sent out, more than 36 million American households received checks.“Talk about a program that has shown its worth in spades. So effective, so necessary. We’ve seen the results immediately,” Pramila Jayapal, chair of the Congressional Progressive Caucus, said on Thursday. Jayapal even invited a Seattle mother of three who benefited from the monthly payments, Leanne Do, as her “virtual guest” to the State of the Union earlier this month.Despite the clear impact of the payments and progressives’ passion for the policy, Democrats appear to be at an impasse when it comes to continuing the monthly checks. The version of the Build Back Better Act that passed the House in November included a one-year extension of the expanded child tax credit. But that bill has stalled in the Senate because of Senator Joe Manchin’s opposition to the proposal.“It’s a question of what can get 50 votes. And unfortunately, we’re still coming up against that barrier,” Jayapal said. “I don’t know what to say other than it’s incredibly frustrating to a lot of us.”Democrats are now trying to resurrect components of the Build Back Better Act that can win Manchin’s approval, specifically the provisions aimed at combating climate change and lowering prescription drug costs. But as the party cautiously approaches negotiations again, there have been conspicuously few mentions of extending the expanded child tax credit.In his State of the Union speech, Biden emphasized the importance of enacting various pieces of his economic agenda, including strengthening domestic supply chains and investing in clean-energy sources. In the hour-long speech, Biden devoted only one half of one sentence to the expanded child tax credit.“Raise the minimum wage to $15 an hour and extend the child tax credit, so no one has to raise a family in poverty,” Biden told lawmakers.On Monday, the president acknowledged the challenges he has faced in trying to extend the expanded credit. “It was something we should be doing again, but I’m having trouble getting it passed again,” Biden said at the National League of Cities Congressional City Conference.That trouble is largely thanks to one member of Biden’s own party. Manchin announced in December that he would not support the Build Back Better Act, saying the bill’s $1.7tn price tag was too much to stomach when US inflation has hit a 40-year high. Privately, Manchin also told colleagues that he feared parents would waste the money from the expanded child tax credit on drugs, according to HuffPost. (Surveys show parents report spending the extra money on food, rent and utilities.)Progressives in Congress are continuing to fight for the policy, but they are clear-eyed about the odds of passing an extension with the narrowest of majorities in the Senate.“As far as the path forward, I would love to say yes, but at this point, I don’t see it, and I haven’t heard a lot of conversations about how to get there,” said the progressive congresswoman Cori Bush, who noted that many of her constituents were “devastated” when the payments ended.If the policy is not reinstated, it could deal another blow to Democrats’ already bleak prospects in the midterm elections. Republicans are currently favored to retake control of the House, and the failure to pass the Build Back Better Act – and specifically the extension of the expanded child tax credit – may make voters even less inclined to re-elect Democrats.Party leaders have tried to frame Congress’s failure to extend the payments as a reflection on Republicans. Chris Taylor, a spokesperson for the Democratic Congressional Campaign Committee, noted that not a single Republican supported the American Rescue Plan, which initiated the monthly payment.“We are going to make sure the record is clear for voters: House Democrats delivered for families when things got tough,” Taylor said. “Every single Republican in Congress voted against helping your family.”With the Build Back Better Act stalled, progressives are also trying to find other avenues for helping families who are financially struggling. On Thursday, the Congressional Progressive Caucus released a list of executive orders that Biden should sign to advance Democrats’ policy agenda. The list includes demands to lower prescription drug costs, expand overtime eligibility and cancel federal student loan debt, among other suggestions.Jayapal pledged that progressives would continue to push for the passage of the Build Back Better Act, including an extension of the expanded child tax credit. But she argued the proposed executive orders represented a strong starting point for helping average Americans’ monthly budgets, which could in turn boost Democrats’ chances in the midterms.“We’ve got to make sure that we’re addressing the increase in housing costs, in childcare, in gas prices, and all the things that we’re seeing right now – and addressing that for people who are on the margins,” Jayapal said on Thursday. “Let’s deliver some relief quickly for people. And yes, anything we do between now and November helps us.”TopicsBiden administrationPovertyUS politicsnewsReuse this content More

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    Rowing Together to Tackle Inequality

    Beyond the health consequences of the pandemic, evidence shows that the COVID-19 crisis may result in increasing the levels of poverty and inequality for years, if not generations. This outcome is not inevitable. However, insufficient responses to the crisis have deepened inequalities both between and within countries and intensified public discontent, paving the way to “social turmoil and unrest,” says research Bruno Valerio.

    COVID Failure: A Matter of Principle

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    The costs of the pandemic are being borne disproportionately by poorer categories of society since low-income households are more exposed to health risks and more likely to experience job losses and sharp declines in wellbeing. At the same time, the pandemic has been a boon for the wealthy. In response to the economic collapse in March and April 2020, central banks injected enormous amounts of liquidity into financial markets, keeping asset prices high while economic activity slowed down. Some of the biggest winners were those with high stakes in the technology sector.

    Against this background, Kara Tan Bhala, the founder of the Seven Pillars Institute for Global Finance and Ethics, suggests using the Gini coefficient as a measure of how close a country or the world is to economic upheaval. “The Gini coefficient gauges the income inequality of a region, where 0 corresponds with perfect equality and 1 corresponds with perfect inequality,” she says. “Perhaps nations begin seriously reforming economic policies when their Gini coefficients are above 0.4 (United States) and red lights start flashing trouble when a country scores above 0.5 (South Africa, Brazil).”

    But how do we tackle inequality? According to economist Etienne Perrot, “the adequate responses must … address both property [ownership] rights through anti-trust regulations to counter the abuse of a dominant position, policies through redistributive taxes and education so as not to confuse emulation and competition.” Other policy responses may include “reforms of the transparency and other features of firm governance, broader acceptance of countries’ right to control cross-border capital movements,” as Andrew Cornford points out.

    Embed from Getty Images

    To implement these policies, the first condition is that inequalities should be on the political agenda, which is not the case everywhere, as professor Yuriy Temirov illustrates with the case of Ukraine. But policy measures alone are not sufficient to reduce inequalities. They have to be complemented by a cultural, transformative process for learning to “row together” (Fratelli tutti), as Domingo Sugranyes of the Pablo VI Foundation says, to increase our socioeconomic resilience.

    By Virgile Perret and Paul Dembinski

    Note: From Virus to Vitamin invites experts to comment on issues relevant to finance and the economy in relation to society, ethics and the environment. Below, you will find views from a variety of perspectives, practical experiences and academic disciplines. The topic of this discussion is: Inequalities seem to accelerate in every part of the world due to COVID-19 and other issues. Unlike the climate debate, in social issues, we do not have a proper threshold for catastrophe. This leads to a possible overestimation of social resilience and leaves the issue as such largely untackled. Drawing on the particularities of your region or on your area of expertise, what should/can be done?

    “… perfectly predictable socioeconomic inequalities … ”

    “The pandemic only reveals perfectly predictable socioeconomic inequalities. Pope Francis had alerted the international community as soon as the first vaccines appeared. The causes of these glaring social inequalities mix the institutional side through the right of property, the politics increasingly tempted by nationalism, and the spiritual bathed in the materialistic individualism of modernity. The adequate responses must therefore address both property right through anti-trust regulations to counter the abuse of a dominant position, policies through redistributive taxes and education so as not to confuse emulation and competition, distinguishing between the elite and the financial success.”

    Etienne Perrot — Jesuit, economist and editorial board member of the Choisir magazine (Geneva) and adviser to the journal Etudes (Paris)

    “… the Gini coefficient as a measure of how close a country is to economic upheaval… ”

    “In the global climate crisis, anything over 2°C above the average pre-industrial temperature leads to unmitigated disaster. In a similar vein, I suggest we use the Gini coefficient as a measure of how close a country or the world is to economic upheaval. The Gini coefficient gauges the income inequality of a region, where 0 corresponds with perfect equality and 1 corresponds with perfect inequality. Perhaps nations begin seriously reforming economic policies when their Gini coefficients are above 0.4 (United States) and red lights start flashing trouble when a country scores above 0.5 (South Africa, Brazil). Of course, these watershed levels need further research, but it would be enlightening to have an idea of the income inequality thresholds of social disaster.”

    Kara Tan Bhala —president and founder of the Seven Pillars Institute for Global Finance and Ethics

    “… public support will be essential to act to avert a total catastrophe … ”

    “Despite its importance, GDP as an indicator should no longer be the only way we measure economic success. Fairer economy would mean tackling health inequalities and getting to grips with issues that prevent individuals from certain ethnic or socioeconomic backgrounds meeting their full potential. We need to embrace means of improving wellbeing and advancing social mobility, build on promoting social inclusion as well as addressing poverty. New plans must be put in place to achieve a more sustainable economy in a more equal and socially just society, and this cannot just be an aspiration — it must be seen as critical to our survival. In recognizing the profound challenges, public support will be essential to act to avert a total catastrophe. The coronavirus is still alive, and risk lies in whether this will be possible.”

    Archana Sinha — head of the Department of Women’s Studies at the Indian Social Institute in New Delhi, India

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    “… rowing together (Fratelli tutti) …”

    “I don’t see a theoretical answer to this extremely vast question. My reaction can only be in terms of (modest) action-oriented commitment: ‘rowing together’ (Fratelli tutti), i.e., trying to identify social projects of high solidarity value, which help people to emerge from poverty on their own capabilities, and look for means — money, goods, time — in order to increase the scope and impact of such communities. We need business and people in business to get much more decidedly involved in these kinds of projects. This is, among many other organizations, what we try to do with The Voluntary Solidarity Fund (VSF International) and VSF Spain. Everybody is welcome to join.”

    Domingo Sugranyes — director of a seminar on ethics and technology at Pablo VI Foundation, former executive vice-chairman of MAPFRE international insurance group

    “… an effective wealth tax and a global minimum corporate tax … ”

    “With the COVID-19 pandemic, the gap between the rich and the poor, in particular the income gap, has increased as Pope Francis, among others, has stated on several occasions. It is undeniable that the trend had already started several decades ago. However, with COVID-19, inequalities have reached record levels that do necessitate strong internal reforms. If no actions will be taken, such as an effective wealth tax and a global minimum corporate tax, the possibility of social turmoil and unrest will be inevitable. In Italy, political parties are literally unable to agree and set the slightest kind of agenda for a proper patrimoniale (wealth tax or asset tax), preferring to keep the country in an extremely dangerous status quo.”

    Valerio Bruno —researcher in politics

    “… fiscal measures, transparency, control of cross-border capital movements … ”

    “Much attention has been given to the wealth as well as the income dimension of the inequalities — the associated rents of the minority at one end, and the much lower and often stagnating incomes of the remainder. The latter comprises not only the working class, but also parts of the middle class. Much commentary has also concerned the opportunities to hide wealth — and thus reduce tax exposure — provided by cross-border financial liberalization and offshore financial centers. Policy responses to the inequalities should include fiscal measures, including improved taxation of the wealth of individuals and firms, reforms of the transparency and other features of firm governance, broader acceptance of countries’ right to control cross-border capital movements, and changes in legal definitions designed to facilitate controls over firms’ domestic and cross-border access to different economic activities and industries and thus to restrict regulatory arbitrage and opaqueness in firms’ operations.”

    Andrew Cornford — counselor at Observatoire de la Finance, former staff member of the United Nations Conference on Trade and Development (UNCTAD), with special responsibility for financial regulation and international trade in financial services

    “… imaginative countermeasures of income … ”

    “The fundamental dynamic of any economy is summed up in the dictum, ‘To those who have shall be given and they shall have more than they can use, and from those who have not shall be taken even what they have.’ COVID also has set it in motion. Where the effects are beneficial — e.g., the reduction in travel by air — it should be encouraged. Further good news is that the deprivation inflicted by COVID on the deprived has been met — at least in places like Geneva — not by the usual blame, scorn and exclusion, but by imaginative countermeasures of income support and new forms of communication like Zoom.”

    Edouard Dommen — specialist in economic ethics, former university professor and researcher at the UNCTAD and president of Geneva’s Ecumenical Workshop in Theology.

    Embed from Getty Images

    “… first we have to think about youth … ”

    “The social deprivation problems are persistent, and this fact routinizes somehow their existence and hinders the definition of a social resilience threshold. Differentiated priorities emerged in South/Eastern Europe after the successive waves of crisis, but first we have to think about youth since no country can sustain without giving hope to its members through a micro/macro strategy that includes: i) an immediate recovery plan with emergency income support for the vulnerable groups; ii) long-lasting work-related policies and investments on youth employment (work-based training, tax reliefs for innovative enterprises); iii) strategies of sharing the risks with interregional cooperation and job retention schemes; and iv) protection and support of childhood integrity (tackling invisible work and poverty with financial benefits for low-income families and proper child/health-care, along with future-centered support, such as home learning environment and early schooling interventions).”

    Christos Tsironis —associate professor of social theory at the Aristotle University of Thessaloniki

    “… in Ukraine, social inequality will not become a priority soon … ”

    “In Ukraine, social inequality has two primary sources: the legacy of the ‘socialist’ totalitarian past and deformed oligarchic capitalism. At the same time, the initial period of transformation with the exacerbation of the problems of social inequality has dragged on dangerously. From 1991 to 2014, the domination of the interests of oligarchic groups over national interests acted as a brake on reforms. After the Revolution of Dignity, there was a political will to implement unpopular reforms, but they had to be carried out in conditions of the population’s fatigue from reforms, in the realities of Russian aggression. The promotion of reforms by servants of the people is complicated by populism. In Ukraine, social inequality will not become a priority soon. At this stage of transformation, this issue cannot be a priority; the authorities do not have a correct understanding of the hierarchy of priorities, and society’s perceptions of equality/inequality are distorted by collectivism and paternalism.

    Yuriy Temirov —associate professor, dean of the Faculty of History and International Relations at Vasyl Stus Donetsk National University

    *[An earlier version of this article was published by From Virus to Vitamin before the Ukraine War began.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More