Poverty

What is poverty?

The usual measure is economic. Those who don’t fall into that category tend to accept data reported by government agencies, but a recent article from the Indiana Capital Chronicle points out that Hoosiers with income inadequate to meet basic needs “is much higher and more extensive in Indiana than official counts would suggest — particularly among working, single mothers of color.”

The Overlooked and Undercounted report commissioned by the Indiana Community Action Poverty Institute analyzed how wages failed to keep pace even as expenses to families increased – namely food, shelter, health care, transportation and child care costs.

However, federal and state governments continue to use a measure that defines poverty based on one cost alone – food – and doesn’t account for increases in other categories.

This is hardly a surprise. I’ve previously posted about the ALICE research conducted by Indiana’s United Ways.

AlLICE is an acronym for Asset Limited, Income Constrained, Employed. ALICE households have income above the official federal poverty level, but below reality– the actual, basic cost of living. The first report, issued in 2014, was eye-opening. Researchers found that

  • More than one in three Hoosier households cannot afford the basics of housing, food, health care and transportation, despite working hard.
  • In Indiana, 37% of households live below the Alice threshold, with some 14% below the poverty level and another 23% above poverty but below the cost of living.
  • These families and individuals have jobs, and many do not qualify for social services or support.
  • The jobs they are filling are critically important to Hoosier communities. These are our child care workers, laborers, movers, home health aides, heavy truck drivers, store clerks, repair workers and office assistants—yet they are unsure if they’ll be able to put dinner on the table each night.
  • For families living on the edge, families struggling just to put that dinner on the table, saving money is a pipe dream. There is nothing left to save. So these families are vulnerable to any unexpected expense—a car repair, an uninsured illness, even an unexpectedly high utility bill can be enough to plunge them into debt or worse.

For obvious reasons, families falling into this category struggle to find the time and energy to participate in civil society, or to engage in the kinds of information-gathering necessary to create informed voters. Financial poverty is all too often so overwhelming a challenge that the other “riches” that most of us take for granted–social, civic, intellectual–are simply beyond reach.

The United Way report was updated in 2016 and again in 2018. It probably won’t surprise you that ALICE’s situation didn’t improve. In 2018, I wrote

As the researchers point out, traditional measures of poverty don’t capture the real picture–the number of people who are struggling financially because the actual cost of life’s necessities where they live is more than they earn.

Indiana, for example, has 2,530,581 households. Thirteen and a half percent of those households fall below the official poverty line–but another 25.2% fall between the poverty line and the ALICE threshold. That’s 38.7% of Hoosiers who face a constant, debilitating struggle for economic survival….

The stress experienced by impoverished and ALICE families isn’t just financial: struggling people live in poorer neighborhoods that are less safe and less healthy. They lack the time and resources that permit other citizens to participate in civic and political life–and as a result, their voices aren’t heard–or their needs considered– in most public policy debates.

As the ALICE reports have emphasized, ALICE folks are in large part the workers that we more privileged folks rely upon for a multitude of essential services. Evidently, we aren’t willing to pay a living wage to the people who provide those services. (There’s a parallel here with our unwillingness to pay taxes adequate to support the public services we demand.)

The irony is, we pay in other ways. As the ALICE reports and the  Business Journal series document, there are significant social costs to a system that leaves so many hard-working people behind.

Dismissing the struggle of ALICE families as a consequence of laziness or lack of ambition is a sign of moral obtuseness–when it isn’t intentionally self-serving. When you tell people to pull themselves up by their bootstraps, you should probably check to see if they have any boots.

The Capital Chronicle found that Hoosier families struggling to make ends meet are “neither a small nor a marginal group, but rather represent a substantial proportion of households in the state”… More than one in four Indiana households lacks enough income to meet basic needs.

Meanwhile, we punish poverty. Effective state and local tax rates start at 11.4 percent for the poorest 20 percent of Americans, fall to 9.9 percent for the middle 20 percent, and then decline to 7.4 percent for the top 1 percent.

After all,  ALICE folks can’t afford lobbyists.

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Public Schools And Parents

When the movement for school vouchers first began, proponents insisted that a “free market” in education would improve outcomes–that children no longer confined to those failing “inner city” schools would emerge better-educated. They tended to ignore pesky concerns about transportation, fly-by-night “education entrepreneurs” and the inconvenient fact that public schools serving rural folks who had no private options were losing resources so that urban kids could attend primarily religious schools.

As the years went on, numerous credible research projects showed that the magic of the market had unaccountably failed. Voucher students not only didn’t perform better, they mostly lagged behind their public-school peers.

That was inconvenient, but the intrepid opponents of American public education weren’t about to let a little thing like poor educational outcomes keep them from realizing their goals: destroying teachers’ unions, evading Separation of Church and State, and enriching donors from the for-profit education sector. So proponents pivoted from test scores to the horrors of “woke” instruction: assertions that the public schools were “indoctrinating” children by teaching them accurate history and –horrors!!–letting them read “woke” books.

The battle cry this time was “trusting and empowering parents” whose Christian family values were being undermined. It turns out, however, that a majority of parents are satisfied with their “woke” public schools.

As an article from the American Prospect explains. there was considerable discontent with school closures during the pandemic, and early successes by reactionary parent groups built on that discontent. Then they over-reached.

The new culture war over the future of education is a stalking horse for the same old battle over school choice. The not-too-hidden goal of denigrating public schools is to weaken support for teachers and their unions, and to redirect funds into school vouchers and other programs that pummel public education even further.

Polling conducted by the American Federation of Teachers in mid-December found that the culture-war framing was unpopular. Instead, voters and parents saw strong academic, critical reasoning, and practical life skills as most important, when compared to anti-wokeness. Furthermore, among the sample group, when given the option between improving public education and giving parents more school choices, 80 percent preferred improving public schools. Most revealing was that two-thirds of voters said that culture-war battles distracted public schools from their foremost role: educating students.

The article noted that even some Republican state legislators resist efforts to privatize education.

In Iowa, nine Republicans in the House, and three in the Senate, voted against a bill that would pull $345 million of taxpayer money over a four-year period into family private-school costs. Thanks to the margins in the Iowa legislature, the bill still passed. The state’s education department expects it would include an additional drop of $46 million from public-school funding as a result…

One Iowa Republican who opposed the measure  told the Des Moines Register that he represented a “very Republican, very conservative district” –and that his constituents were opposed to the measure.

The article also referred to the earlier experiment in Kansas under Gov. Sam Brownback that led to a reversal of the cuts and the election of a  Democratic governor now serving her second term.

Diverting resources to voucher and “scholarship” programs has reduced funding for public school teachers, as well as for extracurricular activities, English-as-a-second-language programs, special-education programs, school bus drivers, janitorial services, and coaches. Those cuts most definitely are not in the public interest, nor are they desired by the vast majority of parents.

As NPR has reported:

Math textbooks axed for their treatment of race; a viral Twitter account directing ire at LGBTQ teachers; a state law forbidding classroom discussion of sexual identity in younger grades; a board book for babies targeted as “pornographic.” Lately it seems there’s a new controversy erupting every day over how race, gender or history are tackled in public school classrooms.

But for most parents, these concerns seem to be far from top of mind. That’s according to a new national poll by NPR and Ipsos. By wide margins – and regardless of their political affiliation – parents express satisfaction with their children’s schools and what is being taught in them…

In the poll, 76% of respondents agree that “my child’s school does a good job keeping me informed about the curriculum, including potentially controversial topics.”…

Just 18% of parents say their child’s school taught about gender and sexuality in a way that clashed with their family’s values; just 19% say the same about race and racism; and just 14% feel that way about U.S. history.

Vouchers don’t improve education, and a small minority of parents is dissatisfied with the curricula in their children’s schools. But in Indiana, evidence is irrelevant. Republican legislators are pushing hard to expand an already-generous voucher program.

They need to explain just who they are representing–and why.

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I Rest My Case

Okay-I probably won’t really “rest my case” so long as Indiana lawmakers continue to prove my point–but I thought I’d give readers a smattering of information about the government produced by Indiana’s gerrymandering. 

First up: we’ve recently learned that Indiana State Rep. Jim Lucas will offer an amendment to the state budget bill–and it’s a doozy. Lucas wants to provide a $2000 tax credit for any Hoosier citizen who purchases an automatic or semi-automatic gun in the next two years.

You read that right. At a time when the proliferation of weapons more suited to war is facilitating daily mass shootings, Lucas wants to encourage people to add to their arsenals. 

Our daughter occasionally looks at Lucas’ Facebook page, and reports that it’s a fetid swamp of racism, anti-Semitism, pro-Trump conspiracies and–of course–“Second Amendment” devotion. Lucas was quoted defending his proposal by saying

“I am very concerned about the safety of our Hoosier families during this next national election period”, said Rep Lucas. “In a circular logic that makes perfect sense to me, our system of elections is breaking down and every citizen needs to be prepared to defend themself from the angry, armed mobs I anticipate we will see”, Rep Lucas said.

Indiana doesn’t keep all of its wacko extremists in the General Assembly; we send more than our share of theocrats and culture warriors to Washington. I’ve mentioned Jim Banks before; currently representing Hoosiers in the House, Banks now intends to run for the Senate seat being vacated by yet another culture warrior, Mike Braun, who wants to be Governor. 

Banks recently emphasized his anti-choice credentials in a radio interview.

Hoosier congressman seeking to represent Indiana in the U.S. Senate is expressing support for reducing abortion options in other states.

During an interview on Fort Wayne’s WOWO-AM radio, U.S. Rep. Jim Banks, R-Columbia City, responded favorably Thursday to a suggestion by host Pat Miller that more needs to be done to restrict abortion in the wake of the U.S. Supreme Court’s June 24, 2022, Dobbs decision repealing the right to abortion established in 1973 by Roe v. Wade.

“Our work as a pro-life movement is far from over,” Miller said. “If a young lady can hop in a car in Fort Wayne and in an hour and a half she can be in a place in Michigan, or in just under three hours she can cross the line into Illinois, and achieve what she was (un)able to do with abortion clinics here in Indiana, the fight is far from over.”

Banks subsequently denied that he wants to impose travel restrictions on Indiana citizens (someone who had actually read the Constitution evidently pointed out that such a restriction would likely be struck down), but re-affirmed his support for a national ban modeled on the one passed by Indiana’s legislature, currently embroiled in a challenge pending  before Indiana’s Supreme Court.

Banks has been busy in the House of Representatives.  According to State Affairs,  Banks recently formed the “anti-woke” caucus.

Earlier this month, he formed the “anti-woke caucus,” explaining at the Claremont Institute, “This utterly un-American doctrine would be comical were it not so powerful and it is powerful because it is enforced not only by every major national institution. It is promoted and funded by the federal government itself.”

Shades of Ron DeSantis…

Then of course, there’s the ongoing saga of Todd Rokita, Indiana’s current Attorney General, who is positively frantic to prove that no one can outdo him when it comes to pandering to the deplorables. I’ve previously posted about Rokita’s tenuous connection to ethics, conclusions that have recently been corroborated by a court decision confirming that his constant PR efforts violate Indiana law.

Rokita has been in the news most recently for his vendetta against the Indiana doctor who performed an abortion on the ten-year-old rape victim from Ohio.  He also made news by defending Kanye West,after West’s anti-Semitic comments hit the news, tweeting

“The constant hypocrisy from the media is at an all-time high. They have now gone after Kanye for his new fashion line, his independent thinking, & for having opposing thoughts from the norm of Hollywood.”

I could probably devote several other posts to Rokita, but he is so widely despised (even by members of his own party) that it hardly seems worth the trouble.

I don’t for a minute think these extremists represent the average Hoosier, but thanks to the GOP’s chokehold on Indiana elections, they’re what we get.

I’ll just end with a great quote from comic Jim Gaffigan.  

“I’m from Indiana… In Indiana it’s not like New York where everyone’s like, ‘We’re from New York and we’re the best’ or ‘We’re from Texas and we like things big’ it’s more like ‘We’re from Indiana and we’re gonna move.’”  

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Fish Rot From The Head

Americans who follow politics know that even critics of party A and Congressman B  are likely to defend their own Congressperson. (Sort of like the critics of public education who defend their own school–it’s always those others that are failing. Back in the day in Indianapolis, Republicans who detested Democrats nevertheless repeatedly voted for Andy Jacobs, Jr.)

In this blog, I tend to focus on national politics. That focus may implicitly suggest that the faults and foibles of the people we send to Washington or empower to govern the state are somehow different- from–and worse than–those of the political folks closer to home.

As the song goes, “It ain’t necessarily so.”

Here in Indiana, I was recently made aware of a court case in Adams County, in which the Court invalidated an election for Union Township Trustee. The court found that Alice Weil, the Republican who won that election, was ineligible for public office due to the fact that she had previously been adjudicated a habitual offender. The court found that the Democratic candidate had  garnered the most votes awarded to eligible candidates; that person now holds the position.

The case generated little or no media coverage, and I think that’s very unfortunate, because it is yet another illustration of the way corruption at the top inevitably permeates an organization. Fish rot from the head, but the rot travels quickly to the rest of the body, and the wholesale deterioration of the GOP is a current, prime example.

It isn’t as if this candidate had fooled local party elders, ala George Santos.The Third District GOP Chair knew his candidate was ineligible–he was heard telling someone he’d have to “swap her out” if it was discovered.

Had the Third District Democrats not chosen to sue, Union Township would now have a convicted criminal as its Township Trustee. But the lawsuit cost the district Democrats six thousand dollars, which it is scrambling to cover. (The court declined to award costs–if there’s a generous reader out there, throw them some dollars!)

Third District residents (not just Democrats) have really suffered enough–their Congresscritter is Jim Banks, who now wants to be one of Indiana’s Senators.

In Washington, Banks was one of the founders of the (grotesquely misnamed) Freedom Caucus–the legislative caucus that includes such sterling defenders of the rule of law as Matt Gaetz, and deep thinkers like Marjorie Taylor Green and Lauren Boebert. Banks recently told  a radio host that he wants to find a way to stop “young ladies” from hopping in a car” to get abortion care outside Indiana.

Hoosiers outside the Third District who may be unacquainted with Banks’ interesting approach to “freedom” were recently introduced to his Senate campaign through its attack on prior Indiana Governor Mitch Daniels, who is rumored to be considering a run for that same Senate spot. The attack paints Daniels as “too liberal” for Hoosiers.

Please retrieve your jaw from the floor. Granted, Mitch Daniels was not one of the committed culture warriors so beloved by today’s GOP, but calling him liberal is…well, let’s just say it’s quite a stretch.

Banks is a “conservative” in the mold of Ron DeSantis. Think racist, homophobic and “anti-woke,” anti-immigrant, anti-choice, pro-privatization of education…on and on. (I put conservative in quotes, because calling  the radical, theocratic wing of today’s GOP “conservative” is deeply unfair to genuine conservatives.)

Interestingly, people in the Third District tell me that Banks used to be a “traditional Republican”–that once he was in Congress, he “lost his mind” and became steadily more radical and unreasonable. Assuming the accuracy of that description, it mirrors reports of other Republicans who have succumbed to the temptations of power and self-aggrandizement during the past several years.

When the people at the helm of a political party embrace lies Big and little, when the man to whom they pledge their loyalty is a grifter and a con artist, when the party abandons even the pretense of policy positions in favor of “hate your neighbor” culture war/identity politics–is it any wonder that the obedient “troops” follow suit?

Then there’s the saddest lesson of all: When there is no longer local media capable of rooting out local corruption, it doesn’t take long for the rot to travel downward.

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How NOT To Do Economic Development

According to a recent report in the Capital Chronicle, the Indiana Economic Development Corporation wants a massive increase in funding. It justifies that request by insisting that larger expenditures are necessary to keep Indiana competitive in the national job market,  “especially as Indiana pivots from manufacturing to the “economy of the future.” Those industries — electric vehicles, semiconductors, agricultural technology — will need incentives to come to the Hoosier State.”

The article describes the nature of the “incentives” that will be offered: purchases of land, tax credits, a “Deal Closing Fund,” and others.

If you are interested in the details, you can find them at the link. My reason for highlighting the article is that it underlines Indiana’s persistent–and exclusive– focus on an economic development approach that is essentially bribery.

There’s a lot wrong with that focus.

First of all, even when successful, it uses tax dollars generated by Hoosiers to reward/bribe enterprises new to the state, rather than trying to grow businesses and employers who are already here. Second, it is an approach that buys in to the “zero sum” game being played by American states that are encouraged to bid against each other to lure Enterprise X,  which, if successful, simply moves the site of employment to state A from state B, rather than adding positions to the nation’s job market.

But my biggest beef with the bribery approach is that it misconceives and misunderstands what makes a state attractive both to business and to skilled workers.

In a recent interview, the new CEO of Techpoint spoke of that organization’s commitment to working with partners “to bring more people of color and women into the sector.” Indiana is currently 37th in tech employment, and–as I have previously noted– there are reasons for that.

Economic development– the addition of skilled workers and new companies–depends  on a state’s quality of life. That quality may be enhanced by good weather and natural beauty (assets Indiana mostly lacks), but it is a far more capacious concept.

As one economic development firm explains,  improving quality of life raises a destination’s desirability, attracts (and retains) population, adds revenue, and boosts recognition and reputation.

As the Brookings Institution has found,

There is compelling new data that these traditional economic development tools may be ineffective compared to investments in quality of life and place. Our research on smaller communities has found that community amenities such as recreation opportunities, cultural activities, and excellent services (e.g., good schools, transportation options) are likely bigger contributors to healthy local economies than traditional “business-friendly” measures. Smaller places with a higher quality of life experience both higher employment and population growth than similarly situated communities, including those that rank high by traditional economic competitiveness measures.

Research has shown that people are willing to pay higher housing prices and even accept lower wages to live in places offering a higher quality of life, and that businesses are willing to pay higher real estate prices and offer higher wages to locate in places with more productive workers.

After estimating quality of life (what makes a place attractive to households) and quality of business environment (what makes a place especially productive and attractive to businesses) in communities across the Midwest, we found quality of life matters more for population growth, employment growth, and lower poverty rates than quality of business environment. 

As the article notes, policymakers can’t build a Great Lake, mountain, or other natural feature. But they can focus on enhancing other quality of life aspects and providing solid public services for their current residents.

The Brookings analysis found that one of the strongest factors associated with higher quality of life was spending on public schools, “with public school quality and the availability of early childhood education being two of the most important factors for working parents.”

Bottom line?

The findings reinforce that local leaders and economic developers should prioritize quality of life strategies over tax incentives and lax regulation. The long-standing Midwestern community economic development strategy of low taxes, business incentives, and loose environmental regulations usually doesn’t work, and has often proven disappointing to communities that have given away tax dollars and reduced business standards without seeing substantial returns. Low business taxes often hide a hidden opportunity cost by reducing available funding for local schools and other public amenities. 

If our legislative overlords really wanted to attract skilled workers–including female workers and workers of color– they would fund child care and pre-K programs. They would work to create great public schools and excellent transit systems. (They would also leave medical decisions to the professionals who understand the complexities of those decisions, rather than imposing the beliefs of fundamentalist Christians on all Hoosiers.)

Pledging billions for bribery while ignoring quality of life isn’t a viable economic development strategy.

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