Billionaires Are Soaring, Poor Kids Are Losing More
By Rajan Menon
February 03, 2020 "Information
Clearing House" -
The plight of impoverished
children anywhere should evoke sympathy,
exemplifying as it does the suffering of the
innocent and defenseless. Poverty among children in
a wealthy country like the United States, however,
should summon shame and outrage as well. Unlike poor
countries (sometimes run by leaders more interested
in lining their pockets than anything else), what
excuse does the United States have for its striking
levels of child poverty? After all, it has the
world’s 10th highest per capita income at
$62,795 and an unrivalled gross domestic product
(GDP) of
$21.3 trillion. Despite that, in 2020, an
estimated
11.9 million American kids -- 16.2% of the total
-- live below the official poverty line, which is a
paltry
$25,701 for a family of four with two kids. Put
another way,
according to the Children's Defense Fund, kids
now constitute one-third of the 38.1 million
Americans classified as poor and 70% of them have at
least one working parent -- so poverty can’t be
chalked up to parental indolence.
Yes, the proportion of kids living below the
poverty line has zigzagged down from
22% when the country was being ravaged by the
Great Recession of 2008-2009 and was even higher in
prior decades, but no one should crack open the
champagne bottles just yet. The relevant standard
ought to be how the United States compares to other
wealthy countries. The answer: badly. It has the
11th highest child poverty rate of the 42
industrialized countries tracked by the Organization
for Economic Cooperation and Development (OECD).
Winnow that list down to European Union states and
Canada, omitting low and middle-income countries,
and our child poverty rate ranks above only Spain’s.
Use the poverty threshold of the OECD -- 50% of a
country’s median income ($63,178 for the United
States) -- and the American child poverty rate leaps
to 20%.
The United States certainly doesn’t lack the
means to drive child poverty down or perhaps even
eliminate it. Many countries on that shorter OECD
list have lower per-capita incomes and substantially
smaller GDPs yet (as a UNICEF
report makes clear) have done far better by
their kids. Our high child-poverty rate stems from
politics, not economics -- government policies that,
since the 1980s, have reduced public investment as a
proportion of GDP in infrastructure, public
education, and poverty reduction. These were, of
course, the same years when a belief that “big
government” was an obstacle to advancement took
ever-deeper hold, especially in the Republican
Party. Today, Washington allocates only
9% of its federal budget to children, poor or
not. That compares to
a third for Americans over 65, up from 22% in
1971. If you want a single fact that sums up where
we are now, inflation-adjusted per-capita
spending on kids living in the poorest families
has barely budged compared to 30 years ago whereas
the corresponding figure for the elderly has
doubled.
The conservative response to all this remains
predictable: you can’t solve complex social problems
like child poverty by throwing money at them.
Besides, government antipoverty programs only foster
dependence and create bloated bureaucracies without
solving the problem. It matters little that the
actual successes of American social programs prove
this claim to be flat-out false. Before getting to
that, however, let’s take a snapshot of child
poverty in America.
Sizing Up the Problem
Defining poverty may sound straightforward, but
it’s not. The government’s annual Official Poverty
Measure (OPM),
developed in the
1960s, establishes poverty lines by taking into
account family size, multiplying the 1963 cost for a
minimum food budget by three while factoring in
changes in the Consumer Price Index, and comparing
the result to family income. In
2018, a family with a single adult and one child
was considered poor with an income below $17,308
($20,2012 for two adults and one child, $25,465 for
two adults and two children, and so on). According
to the OPM, 11.8% of all Americans were poor that
year.
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By contrast, the Supplementary Poverty Measure (SPM),
published yearly since 2011, builds on the OPM but
provides a more nuanced calculus. It counts the
post-tax income of families, but also cash flows
from the Earned Income Tax Credit (EITC)
and the Child Tax Credit (CTC),
both of which help low-income households. It adds in
government-provided assistance through, say, the
Supplemental Nutritional Assistance Program (SNAP),
Temporary Aid to Needy Families (TANF),
the Children’s Health Insurance Program (CHIP),
the National School Lunch Program (NSLP),
Medicaid, subsidies for housing and utilities, and
unemployment and disability insurance. However, it
deducts costs like child care, child-support
payments, and out-of-pocket medical expenses.
According to the SPM, the 2018 national poverty rate
was 12.8%.
Of course, neither of these poverty calculations
can tell us how children are actually faring. Put
simply, they’re faring worse. In 2018, 16.2% of
Americans under 18 lived in families with incomes
below the SPM line. And that’s not the worst of it.
A 2019 National Academies of Sciences, Engineering,
and Medicine study commissioned by Congress found
that
9% of poor children belong to families in “deep
poverty” (incomes that are less than 50% of the
SPM). But
36% of all American children live in poor or
“near poor” families, those with incomes within 150%
of the poverty line.
Child poverty also varies by
race -- a lot. The rate for black children is
17.8%; for Hispanic kids, 21.7%; for their white
counterparts, 7.9%. Worse, more than half of all
black and Hispanic kids live in “near poor” families
compared to less than a quarter of white children.
Combine age and race and you’ll see another
difference, especially for children under
five, a population with an overall 2017 poverty
rate of 19.2%. Break those under-fives down by
race, however, and here’s what you find: white kids
at 15.9%, Hispanic kids at an eye-opening 25.8%, and
their black peers at a staggering 32.9%.
Location matters, too. The child poverty rate
shifts by
state and the differences are
stark. North Dakota and Utah are at 9%, for
instance, while New Mexico and Mississippi are at
27% and 28%. Nineteen states have rates of 20% or
more. Check out a color-coded
map of geographic variations in child poverty
and you’ll see that rates in the South, Southwest,
and parts of the Midwest are above the national
average, while rural areas tend to have higher
proportions of poor families than cities. According
to the
Department of Agriculture, in rural America, 22%
of all children and 26% of those under five were
poor in 2017.
Why Child Poverty Matters
Imagine, for a moment, this scenario: a 200-meter
footrace in which the starting blocks of some
competitors are placed 75 meters behind the others.
Barring an Olympic-caliber runner, those who started
way in front will naturally win. Now, think of that
as an analogy for the predicament that American kids
born in poverty face through no fault of their own.
They may be smart and diligent, their parents may do
their best to care for them, but they begin life
with a huge handicap.
As a start, the nutrition of poor children will
generally be inferior to that of other kids. No
surprise there, but here’s what’s not common
knowledge: a childhood nutritional deficit matters
for years afterwards, possibly for life.
Scientific research shows that, by age three,
the quality of childrens’ diets is already shaping
the development of critical parts of young brains
like the hippocampus and prefrontal cortex in ways
that matter. That’s worth keeping in mind because
four million American kids under age six were
poor in 2018, as were close to
half of those in families headed by single
women.
Indeed, the process starts even earlier. Poor
mothers may themselves have nutritional deficiencies
that increase their risk of having babies with
low birthweights. That, in turn, can have
long-term effects on children’s health, what
level of education they reach, and their future
incomes since the quality of nutrition affects
brain size,
concentration, and
cognitive capacity. It also increases the
chances of having
learning disabilities and experiencing
mental health problems.
Poor children are likely to be less healthy in
other ways as well, for
reasons that range from having a greater
susceptibility to
asthma to higher concentrations of
lead in their blood. Moreover, poor families
find it
harder to get good health care. And add one more
thing: in our
zip-code-influenced public-school system, such
children are likely to attend schools with far fewer
resources than those in more affluent neighborhoods.
Our
national opioid problem also affects the
well-being of children in a striking fashion.
According to the Centers for Disease Control and
Prevention (CDC),
between 2008 and 2012, a third of women in their
childbearing years filled opioid-based medication
prescriptions in pharmacies and an estimated 14%-22%
of them were pregnant. The result: an alarming
increase in the number of babies exposed to opioids
in utero and experiencing withdrawal symptoms at
birth, which is also known as neonatal abstinence
syndrome, or NAS, in medical lingo. Its effects, a
Penn State study found, include future increased
sensitivity to pain and susceptibility to fevers and
seizures. Between 2000 and 2014, the
incidence of NAS increased by a multiple of
four. In 2014, 34,000 babies were born with NAS,
which, as a
CDC report put it, “is equivalent to one baby
suffering from opioid withdrawal born approximately
every 15 minutes.” (Given the ongoing opioid crisis,
it’s unlikely that things have improved in recent
years.)
And the complications attributable to NAS don’t
stop with birth. Though the
research remains at an early stage -- the opioid
crisis only began in the early 1990s -- it suggests
that the ill effects of NAS extend well beyond
infancy and include impaired cognitive and motor
skills, respiratory ailments, learning disabilities,
difficulty maintaining intellectual focus, and
behavioral traits that make productive interaction
with others harder.
At this point, you won’t be surprised to learn
that NAS and child poverty are connected.
Prescription opioid use rates are much
higher for women on Medicaid, who are more
likely to be poor than those with private insurance.
Moreover, the abuse of, and overdose deaths from,
opioids (whether obtained through prescriptions or
illegally) have been far more
widespread among the poor.
Combine all of this and here’s the picture: from
the months before birth on, poverty diminishes
opportunity, capacity, and agency and its
consequences reach into adulthood. While that rigged
footrace of mine was imaginary, child poverty
certainly does ensure a future-rigged society. The
good news (though not in Donald Trump’s America):
the race to a half-decent life (or better) doesn’t
have to be rigged.
It Needn’t Be this Way (But Will Be as
Long as Trump Is President)
Can children born into poverty defy the odds,
realize their potential, and lead fulfilling lives?
Conservatives will point to stories of people who
cleared all the obstacles created by child poverty
as proof that the real solution is hard work. But
let’s be clear: poor children shouldn’t have to find
themselves on a tilted playing field from the first
moments of their lives. Individual success stories
aside, Americans raised in poor families do markedly
less well
compared to those from middle class or affluent
homes -- and it doesn’t matter whether you choose
college attendance, employment rates, or future
household income as your measure. And the longer
they live in poverty the worse the
odds that they’ll escape it in adulthood; for
one thing, they’re far less likely to finish high
school or attend college than their more fortunate
peers.
Conversely, as Harvard economist Raj Chetty and
his colleagues have
shown, kids’ life prospects improve when parents
with low incomes are given the financial wherewithal
to move to neighborhoods with higher social-mobility
rates (thanks to better schools and services,
including health care). As in that imaginary
footrace, the
starting point matters. But here the news is
grim. The
Social Progress Index places the United States
75th out of 149 countries in “access to quality
education” and 70th in “access to quality health
care” and poor kids are, of course, at a
particular disadvantage.
Yet childhood circumstances can be (and have
been) changed -- and the sorts of government
programs that conservatives love to savage have
helped enormously in that process. Child poverty
plunged from 28% in 1967 to 15.6% in 2016 in
significant part due to programs like
Medicaid and the
Food Stamp Act started in the 1960s as part of
President Lyndon Johnson’s War on Poverty. Such
programs helped poor families pay for housing, food,
child care, and medical expenses, as did later tax
legislation like the Earned Income Tax Credit and
the Child Tax Credit. Our own history and that of
other wealthy countries show that child poverty is
anything but an unalterable reality. The record also
shows that changing it requires mobilizing funds of
the sort now being wasted on ventures like America’s
multitrillion-dollar forever wars.
Certainly, an increase in jobs and earnings can
reduce child poverty. Wall Street Journal
odes to Donald Trump’s tax cuts and deregulation
policies highlight the present 3.5% unemployment
rate (the lowest in 60 years), a surge in new jobs,
and wage growth at all levels, notably for workers
with low incomes who lack college degrees. This
storyline, however, omits important realities.
Programs that reduce child poverty help even in
years when poor or near-poor parents gain and, of
course, are critical in bad times, since sooner or
later booming job markets also bust. Furthermore,
the magic that Trump fans tout occurred at a moment
when many
state and city governments were mandating
increases in the minimum wage. Employers who
hired, especially in heavily populated
states like California, New York, Illinois,
Ohio, and Michigan, had to pay more.
As for cutting child poverty, it hasn’t exactly
been a presidential priority in the Trump years --
not like the drive to pass a $1.5 trillion corporate
and individual income tax cut whose gains flowed
mainly to the richest Americans, while inflating the
budget deficit to
$1 trillion in 2019, according to the Treasury
Department. Then there’s that “impenetrable,
powerful, beautiful wall.” Its
estimated price ranges from $21 billion to $70
billion, excluding maintenance. And don’t forget the
proposed extra
$33 billion in military spending for this fiscal
year alone, part of President Trump’s plan to boost
such spending by
$683 billion over the next decade.
As for poor kids and their parents, the president
and congressional Republicans are beginning to slash
an array of
programs ranging from the Supplemental
Nutritional Assistance Program to Medicaid --
$1.2 trillion worth over the next 10 years --
that have long helped struggling families and
children in particular get by. The Trump
administration has, for good measure, rewritten the
eligibility
rules for such programs in order to lower the
number of people who qualify.
The supposed goal: to cut costs by reducing
dependence on government. (Never mind the subsidies
and tax loopholes Trump’s crew has created for
corporations and the
super wealthy, which add up to many billions of
dollars in spending and lost revenue.) These
supposedly work-ethic-driven austerity policies
batter working families with young kids that, for
example, desperately need childcare, which can take
a big
bite out of paychecks: 10% or more for all
households with kids, but half in the case of poor
families. Add to that the cost of unsubsidized
housing. Median monthly rent increased by nearly
a third between 2001 and 2015. Put another way,
rents consume more than half the income of the
bottom 20% of Americans, according to the
Federal Reserve. The advent of Trump has also
made the struggle of low-income families with
healthcare bills even harder. The number of kids
without health insurance jumped by
425,000 between 2017 and 2018 when, according to
the Census Bureau,
4.3 million children lacked coverage.
Even before Donald Trump’s election, only
one-sixth of eligible families with kids received
assistance for childcare and a paltry one-fifth
got housing subsidies. Yet his administration
arrived prepared to put programs that helped some of
them pay for
housing and
childcare on the chopping block. No point in
such families looking to him for a hand in the
future. He won’t be building any Trump Towers for
them.
Whatever “Make America Great Again” may mean, it
certainly doesn’t involve helping America’s poor
kids. As long as Donald Trump oversees their race
into life, they’ll find themselves ever farther from
the starting line.
Rajan Menon, a
TomDispatch regular, is the Anne
and Bernard Spitzer Professor of International
Relations at the Powell School, City College of New
York, senior research fellow at Columbia
University’s Saltzman Institute of War and Peace
Studies, and a non-resident fellow at the Quincy
Institute for Responsible Statecraft. His latest
book is
The Conceit of Humanitarian Intervention.
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