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Keeping the Waltons Out of the Poorhouse

Apr 18, 2015
A new study by the Center for Labor Research and Education at UC/Berkeley quantifies the amounts spent by federal and state governments on four of the most costly public assistance programs. The researchers gathered data on expenditures for Medicaid/CHIP, Temporary Aid to Needy Families, the Earned Income Tax Credit, and the Supplemental Nutrition Assistance Program.

Between 2009 and 2011, $152.8 billion per year was spent on just these four programs. And the most shameful fact, which was no surprise to me, was that over half of that state and federal money—56%—went to working families.

You and I help support millions of underpaid workers while their employers, people like the heirs of Sam Walton, become multi-billionaires. Much of those billions going into their pockets are dollars you and I have worked hard to earn. How is it we can be played for such suckers?

The report also repeats some familiar and equally dismal facts: Real hourly wages for the median American worker increased by only 5 percent between 1979 and 2013. And for the bottom 10% of workers, the wages were 5 percent lower. Furthermore, wages for the bottom 70% of workers were either flat or in negative territory between 2003 and 2013. The rich are getting fabulously richer, the poor are getting poorer, and you and I are struggling hard to stay where we are.

There is something very wrong with this picture. We have two options: solve the problem or watch it get worse. Powerful forces in American politics are at work to guarantee the latter. If no one emerges to challenge the essentially identical economic programs of the current left and right, things will only get, in the words of Kurt Vonnegut, “unimaginably worse.” Just how bad do they have to get?

The solution is a simple one: Jobs for all, at a living wage, and end the many inefficient, ineffective, and humiliating programs masquerading as “safety nets” for the poor. All they do is sustain poverty and allow a capitalistic system run amok to maneuver more of us into that category.
tags: Politics | Poverty | Governance

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