- Bleak portrait of poverty is off the mark, experts say, By Jason DeParle, Robert Gebeloff and Sabrina Tavernise, November 3, 2011, New York Times: “When the Census Bureau said in September that the number of poor Americans had soared by 10 million to rates rarely seen in four decades, commentators called the report ‘shocking’ and ‘bleak.’ Most poverty experts would add another description: ‘flawed.’ Concocted on the fly a half-century ago, the official poverty measure ignores ever more of what is happening to the poor person’s wallet – good and bad. It overlooks hundreds of billions of dollars the needy receive in food stamps and other benefits and the similarly formidable amounts they lose to taxes and medical care. It even fails to note that rents are higher in places like Manhattan than they are in Mississippi. On Monday, that may start to change when the Census Bureau releases a long-promised alternate measure meant to do a better job of counting the resources the needy have and the bills they have to pay. Similar measures, quietly published in the past, suggest among other things that safety-net programs have played a large and mostly overlooked role in restraining hardship: as much as half of the reported rise in poverty since 2006 disappears…”
- To define poverty, US has a new (and improved?) formula, By Anna Mulrine, November 4, 2011, Christian Science Monitor: “How to get the clearest picture of who is poor in America? That’s a question poverty experts have grappled with for years – and years. At last, the Census Bureau is updating how it measures who’s poor and who’s not – aka the poverty line. Until this month, the poverty line has been calculated the same way for half a century. It was developed in 1964 as part of Lyndon Johnson’s War on Poverty. Ever since, a debate has ensued about how to determine who’s truly poor…”
Daily Archives: November 4, 2011
Concentrated Poverty in the US
- Bay Area’s five poorest neighborhoods show up in study, By Matt O’Brien, November 3, 2011, San Jose Mercury News: “The Bay Area has fewer concentrations of extreme poverty than a decade ago, according to a report released Thursday. That may not console the people living in the Bay Area’s five poorest neighborhoods. In five census tracts, four of them in the East Bay, more than 40 percent of residents live below the poverty line, according to the Brookings Institution report. The neighborhoods are in downtown Berkeley, uptown Oakland, Alameda Point and parts of West Oakland and San Francisco’s Hunters Point. Two are business districts where many homeless congregate; one, the area around Oakland’s Frank H. Ogawa Plaza, has been central in the Occupy protests. Others are residential areas with well-kept public housing. The Uptown Oakland area, which includes some of downtown and the plaza, is a study in contrasts: Despite a glut of new condos meant to attract young professionals, more than 40 percent of residents live below the poverty line — which for a single person means making less than $11,000 a year…”
- Poor Chattanooga neighborhoods have more than doubled in 9 years, By Judy Walton, November 4, 2011, Chattanooga Times Free Press: “The number of extremely poor neighborhoods in Chattanooga and the region — those with poverty rates above 40 percent — more than doubled from 2000 to 2009, a new report shows. The number of people living in the poorest census tracts in the Chattanooga region grew by more than 4,200, to 10,535, in the period, according to ‘The Re-Emergence of Concentrated Poverty,’ from the Brookings Metropolitan Policy Program. The Washington, D.C.-based Brookings Institute is a liberal-leaning nonprofit that researches social issues. ‘We lost ground against concentrated poverty in the 2000s,’ Elizabeth Kneebone, a senior research associate at Brookings and lead author of the report, said in a news release. ‘More people are living in areas that are extremely poor, and concentrated poverty now affects a greater swath of communities than in the past.’ In the release, Kneebone noted that the federal poverty level in 2010 was $22,314 annually for a family of four…”
Child Poverty in the US
City’s childhood poverty third worst in nation, By Mark Curnutte, November 3, 2011, Cincinnati Enquirer: “Patti Bellamo makes about $13,500 a year as a food service helper at Oyler School, her 14th year with Cincinnati Public Schools. Their three adult children, daughter-in-law and five grandchildren live with Bellamo and her disabled husband, Paul, a former contractor, in their house near the school. Her son Eric and his wife, Nicole, and their five children, ages 2-10, moved in a few months ago when Eric had trouble getting enough hours with a moving company to pay his Duke Energy bill. Those five Bellamo youngsters are among the estimated 48 percent of the children in Cincinnati who give it the third-highest rate of childhood poverty, behind Detroit and Cleveland. The poverty level for a family of four in 2010 was $20,050…”
Homeless Children and Families – Chicago, IL
New attention paid to homeless youth and families, By Meribah Knight, November 3, 2011, New York Times: “More than 10,000 homeless students are enrolled in Chicago’s classrooms this fall, a 16 percent increase over last year and a record high, according to Chicago Public Schools data for September. The school district’s numbers reflect a trend seen by service providers around the city: Chicago’s homeless population is becoming younger. More families are living on the street, and the number of homeless youths on their own has grown exponentially. With a lack of affordable housing, a rising number of foreclosures and a state unemployment rate higher than the national average, the increase in homeless youths and families is putting stress on a social support system that is facing sharp cuts in budgets and programs…”
LA Times Series on Buy Here Pay Here Car Dealerships
- A vicious cycle in the used-car business, By Ken Bensinger, October 30, 2011, Los Angeles Times: “Tiffany Lee wanted a car. She was weary of the two-hour bus ride to her job at a UCLA Health System clinic. She hated having to ask friends to drive her 7-year-old son to his asthma treatments. But as a single mother with three children, bad credit and a $27,000-a-year salary, she couldn’t find a bank or dealership willing to give her a loan. Then a friend steered her to Repossess Auto Sales in Hawthorne. Another buyer might have balked at the deal she was offered. Lee figured she had no choice. She put $3,000 down and drove off in a 2007 Ford Fusion, agreeing to pay $387 a month for four years. The interest rate: 20.7%, nearly triple the national average for a used-car loan…”
- Investors place big bets on Buy Here Pay Here used-car dealers, By Ken Bensinger, November 1, 2011, Los Angeles Times: “The J.D. Byrider used-car dealership in Visalia, Calif., sits amid a jumble of tow yards, hubcap vendors and vacant lots littered with empty beer cans. It may not look like much, but selling aging cars to waitresses, secretaries and farmworkers is a lucrative business. That’s why private equity firm Altamont Capital Partners of Palo Alto bought the J.D. Byrider chain in May for a reported $50 million. Altamont’s offices, on the 10th floor of a luxury office tower overlooking Stanford University, are 200 miles and a world away from the Visalia lot. On a recent morning, a dozen executives could be seen huddled in a glass-walled conference room, reviewing a slide presentation on plans to buy some franchised Byrider lots. It’s part of a strategy to boost profit at the 135-lot chain, which had sales of $740 million last year…”
- A hard road for the poor in need of cars, By Ken Bensinger, November 3, 2011, Los Angeles Times: “No car, no work. That’s the conclusion Lisa Twombly reached as she fought to hang on to her job as a caretaker for an elderly San Diego couple. Taking the bus and bumming rides from friends wasn’t cutting it, and she was repeatedly late for work. Told she’d be fired if it happened again, Twombly put down $4,000 – all her savings – on a 9-year-old Chrysler Sebring with 95,000 miles. The dealership lent her the $2,600 balance at a steep 18% interest rate. A few months later, the Sebring broke down and she got into a dispute with the dealer over who should pay for repairs. Twombly quit making loan payments, and Dig’s Wheels of Escondido, Calif., repossessed the car. She again struggled to get to work on time and was fired. That set off a chain of events that left the 38-year-old single mother and her two children homeless for six weeks. ‘I don’t know what I’m going to do,’ said Twombly, who is still out of work. ‘I lost my job because I lost my car.’ For more than a century, efforts to help the disadvantaged have focused on education, healthcare, nutrition and housing. Almost nothing has been done to help the working poor afford cars, despite research that indicates it would help alleviate poverty…”
Welfare Cuts – Michigan
Families to lose welfare benefits after appeals court overturns Genesee County judge’s ruling, By Kristin Longley, November 4, 2011, Flint Journal: “More than 1,200 families in Genesee County will lose their cash assistance benefits this weekend after the Michigan Court of Appeals on Thursday overturned a local judge’s ruling. Genesee County Circuit Judge Geoffrey L. Neithercut had issued a temporary injunction as part of a lawsuit that argues the state can’t use a five-year time limit based on federal regulations to end benefits for some welfare recipients. But the appeals court reversed that order Thursday, ruling that Neithercut’s ‘issuance of the temporary injunction was inappropriate.’ The cash assistance cutoff will start Saturday, the Department of Human Services said in a statement…”
October 2011 US Unemployment
- Report shows gain in jobs but growth still sluggish, By Catherine Rampell, November 4, 2011, New York Times: “The United States economy created a modest number of jobs in October, the Labor Department reported Friday. Employers added 80,000 payroll positions on net, slightly less than what economists had expected. That compares to 158,000 jobs in September, a month when the figure was helped by the return of 45,000 Verizon workers who had been on strike. Friday’s report also showed that job growth in September and August was significantly stronger than the Labor Department initially believed it was, giving economists hope that October’s employment growth may have been better than this first estimate suggests, too…”
- Economy adds 80K jobs in Oct.; unemployment dips to 9%, By Neil Irwin, November 4, 2011, Washington Post: “The U.S. economy kept muddling along in October, according to new government data, as employers continued to hire at a sluggish pace and the unemployment rate fell slightly to its lowest rate since April. The jobless rate fell to 9 percent in October from 9.1 percent, the Labor Department said Friday morning, with more people reporting that they had a job in a survey of households. Employers created 80,000 net new jobs last month…”