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Change Your World Week Fall 2021 (Archived)

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Effects of Poverty

Michigan Poverty Rate

Would You Be Considered Poor Based on 2021 Federal Poverty Levels? | $aving  to Invest

New Census data offers in-depth data on poverty in Michigan - mlive.com

The Problem

Recently poverty has been at an all-time high in the United States. Individuals and families have fallen into the poverty line over the years and the rate is increasing rapidly. This is a big problem because people are not earning enough to support themselves in a healthy manner. Poverty has always been a problem, but the impact of Covid has made everyone struggle financially, emphasizing those who already were falling into the cracks. The struggle to afford the basic needs, like housing, childcare, food, technology, health care, and transportation is rising. 

Opposing Arguments

ProCon.org states that "The American public does not support socialism. 65% of Americans have favorable views of capitalism, while 42% have an unfavorable view of socialism. 87% of Americans support free enterprise. As Mark J. Perry, PhD, MBA, Scholar at American Enterprise Institute and Professor of Economics and Finance at the University of Michigan, explained, “Capitalism will play a major role in the global revival of liberty and prosperity because it nurtures the human spirit, inspires human creativity, and promotes the spirit of enterprise. By providing a powerful system of incentives that promote thrift, hard work, and efficiency, capitalism creates wealth."

On the other hand, ProCon.org says "In general, socialist policies are broadly supported by Americans: 69% support medicare-for-all. 63% support free public college tuition. 59% support raising the minimum wage to $15 by 2025. 85% support paid work leave for illness. 82% support paid maternity leave. 69% support paid paternity leave. 67% support paid leave to care for an ill family member. 74% support continued social security benefits without cuts. 66% support government-led environmental protections. And 64% support a wealth tax."

Who Are the Players

So, who exactly are the power players in relation to the effects on poverty?

In Michigan the Department of Labor and Economic Opportunity states, “Today, 1.4 million Michiganders fall below the poverty level, but more importantly, the United Way’s Alice Report shows that 43% or 4.3 million of working Michigan households struggle to afford necessities like housing, childcare, food, technology, health care, and transportation.” (“Michigan Poverty Task Force”). 

Another important group of stakeholders in the issue of poverty are the owners of corporations and their shareholders. According to the Michigan Campaign Finance Network, “The business groups asking state lawmakers to weaken voter-initiated laws that increased the minimum wage and required paid sick leave have been heavy financial supporters of lawmakers’ campaigns. Political action committees (PACs) connected to 10 business groups that spoke out in support of overhauling the new laws have spent $1.9 million to benefit current lawmakers and their caucuses in 2018, according to a new analysis of campaign finance disclosures.” (“Groups Pushing to Gut Wage”). 

State representatives as well as House speakers are other power players within Michigan’s government as well. The Super PACS as well as others gave their dollars to; Republican Representative Tom Barrett ($205,017), Republican Rep. Brandt Iden ($88,273), Republican Rep. Laura Cox ($83,500), Republican Rep. Jim Runestad ($69,050) and House Speaker Tom Leonard ($54,850). Tom Barret, Laura Cox and Jim Runestad ran for senate in 2018. Brandt Iden ran for re-election that year and Tom Leonard ran for attorney general. These individuals are all stake holders and have direct power over those living in poverty. They are lawmakers that obtain money from Super PACS. The Super PACS support corporations making a profit over supporting laws that help those in poverty.

 

The Policy Solution

What are people saying about the issue from both sides?

A few SuperPAC's that do not support increasing the minimum wage are the Michigan chamber of Commerce Super PAC; $439,694, the Michigan Restaurants & Lodging Association PAC; $77,000, the Michigan Bankers Association PAC; $150,950, the Michigan Farm Bureau PAC; $133,650 and the Small Business Association Super PAC; $48,963. Another statement from the Michigan Campaign Finance Network reads, “In a May 2018 press release, Justin Winslow, president and CEO of the Michigan Restaurant & Lodging Association, called the minimum wage voter initiative “irresponsible and dangerous.”” (Groups Pushing to Gut Wage”). 

On the other hand in 2019 Governor Gretchen Whitmer issued Executive Order 2019-19 creating the Michigan Poverty Task Force. “Our goal is to reduce the state’s ALICE population. According to the Michigan Association of United Ways, 43% of Michiganders are Asset Limited, Income Constrained, Employed (ALICE). These are Michiganders who work every day but struggle to pay for basic needs such as shelter, food, transportation, communication and child care. Our approach to poverty eradication will not only lift the poorest Michiganders, but will also help stabilize the income of those who have seen their middle class status slip away because of stagnant wages and an evolving job market.” (“Poverty Task Force Report & United Way ALICE”).

Taking Action

What is important to you in regard to poverty? Is it raising the minimum wage, affordable healthcare, eliminating student debt, cheaper college/university tuitions, etc? E-mail, call or write a letter to your local state representative or senator. 

We could also support programs like the Build Back Better Act.

All people should have access and assistance with childcare to make it possible for families to be in the workforce. Childcare is expensive and imperative to people with kids to work a decent amount in order to support themselves as well as the child/children.  This would include investing in grants and programs that help low-income families afford quality childcare. The Build Back Better Act helps low-income families have access to affordable childcare and saves families more than a hundred dollars a week. Not only does this act focus on providing childcare, but shows importance as a political, economic, racial and gender justice imperative. This would address the wage gap very well by increasing the number of women with young children working full time. This act also supports the creation of more than 2 million new jobs nationwide. A poll also showed that 81% of voters agree that childcare was a reasonable use for tax-payer money.

You can also join the fight against poverty by signing up with your email address for updates to learn more about Michigan's Poverty Taskforce.

What Do You Think?

Do you personally feel the effects of poverty in your every day life?
Yes: 2 votes (50%)
Sometimes: 0 votes (0%)
No: 1 votes (25%)
I have to work 2 jobs: 1 votes (25%)
I cannot seem to catch up: 0 votes (0%)
Total Votes: 4

Do you need Assistance? Resources in Michigan.

Works Cited

“Groups Pushing to Gut Wage, Sick Leave Laws Spent $1.1m to Support Current Lawmakers This Year.” Groups Pushing To Gut Wage, Sick Leave Laws Spent $1.1M To Support Current Lawmakers This Year, 4 Dec. 2018, https://mcfn.org/node/7118/groups-pushing-to-gut-wage-sick-leave-laws-spent-11m-to-support-current-lawmakers-this-year. 

“Poverty Task Force Report - Michigan.” 2021 Poverty Taskforce Report, Michigan Department of Labor and Opportunity, 2019, https://www.michigan.gov/documents/leo/LEO-Poverty_Task_Force_Report_716585_7.pdf. 

“Research Center.” ALICE Project ‒ Michigan, 2019, https://www.unitedforalice.org/michigan

ProCon.org. “American Socialism - Top 3 Pros and Cons.” ProCon.org, 3 Aug. 2021, https://www.procon.org/headlines/american-socialism-top-2-pros-and-cons/. 

“Michigan Poverty Task Force.” Labor and Economic Opportunity - Michigan Poverty Task Force, 2019, https://www.michigan.gov/leo/0,5863,7-336-78421_97193---,00.html. 

“Rep. Amos O'Neal.” Housedems.com, 9 June 2021, https://housedems.com/amos-oneal/

“Find Your Senator by Address.” Michigan State Senate - Find Your Senator, https://www.senate.michigan.gov/FindYourSenator/michiganfys.asp?lookup=Y. 

“The Build Back Better Act: Child Care and ... - Clasp.org.” Edited by CLASP The Center for Law and Social Policy , CLASP.com, Oct. 2021, https://www.clasp.org/sites/default/files/publications/2021/10/450BBBFS.pdf.

Bernstein, Jared, and Melissa Boteach. “10 Solutions to Fight Economic Inequality.” Talkpoverty.org, 10 June 2015, https://talkpoverty.org/2015/06/10/solutions-economic-inequality/#Olivia%20Golden.