The working poor make nickels and dimes when their wages are raised, not enough to cover the rising cost of living. Seniors living on fixed incomes cut corners even further and choose between food or medications. Many try to climb up the income ladder, but the bottom rung is as high as they will go.
On Tuesday, the U.S. Census Bureau released its annual data on how many people in the United States live in poverty. The numbers remind us that there are millions of Americans coping with extreme financial distress in their lives every day. Millions of Americans are the hidden poor, our friends, neighbors or co-workers who are dealing with complex challenges for their families with silent resilience.
However, the new poverty data, which were collected in 2007, understate the number of struggling families because they do not reflect the current recession and its impact on families whose jobs increasingly don’t pay enough to meet basic needs.
Moreover, there is wide agreement that the poverty measures do not accurately reflect those who are living with limited incomes. Plus, income disparity continues to increase. In 2006, the top 1 percent earned 23 percent of all income in the country.
Montana has been fortunate to have a low unemployment rate until now. But our wages have not kept pace with rising prices, resulting in many Montanans working multiple jobs. And more and more people are turning to emergency food pantries due to rising food and fuel costs. The Montana Food Bank Network has seen a steady rise in client visits to our 189 agencies around the state, from 540,885 visits in 2001 to 698,670 in 2007. This number is growing even faster in 2008.
When Congress returns in September, it can take several actions to help the people who are being left behind, starting with an economic stimulus bill. Such a bill must include assistance for those at the bottom of the economic ladder.
Ben Bernanke, chairman of the Federal Reserve, supports stimulating the economy by directing funds to low-income people and recently stated, “If you’re somebody who lives paycheck to paycheck, you’re more likely to spend that extra dollar.”
Equally important, Congress can pass legislation to expand the child tax credit provision currently in the tax extender bill. The bill could benefit more than 36,000 children in Montana. For the large number of single- and two-parent families working in the state, this would bring much-needed relief.
There are several initiatives under way in our state to create new jobs to meet growing employer needs. However, we also need jobs that pay incomes people can live on. Health care continues to be a major issue for Montanans. Many families avoid going for care because they lack of coverage and can’t even cover the co-pay. Finally, a state earned income tax credit would be an effective tool to reduce poverty. The Legislature has the opportunity and the ability to deal with these critical needs next year.
For those who never had the good years, the working poor, their children, as well as seniors living on fixed incomes, the challenge to get through each day or month should not be a fact of life. It will take public and political will to help them reach the ability to be self-sufficient - the same standards that middle- and upper-income people pursue.
Minkie Medora is a member of the Food Security Council and the Montana Food Bank Network. She writes from Missoula.
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rose wrote on Mar 3, 2009 4:14 AM: