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Economy

Poll: Majority Of Low-Income Republicans Believe The Government Does Not Do Enough To Help The Poor

This week, GOP presidential candidate Mitt Romney admitted that he is “not concerned about the very poor,” a jarring sentiment that nonetheless seems to encapsulate the Republican party’s view of income inequality. Be it through budget cuts, tax breaks, or prejudicial eligibility requirements for government benefits, members of the GOP are prioritizing America’s wealthy at the expense of America’s most vulnerable.

There are some Republicans, however, who aren’t subscribing to this agenda. According to a new poll, a majority of low-income Republicans believe that the America’s economic system unfairly favors the wealthy and that the government does not do enough to help the poor:

In a Pew Research Center survey conducted in early October, 57% of lower-income Republican and Republican-leaning voters said the government does too little for poor people. Just 18% said it does too much.

By contrast, higher-income Republicans took the opposite view; by roughly two-to-one (44% to 21%) Republicans with incomes of $75,000 or more said the government does too much, not too little, for poor people.

Indeed, while sharing the public’s general distrust of the government, 70 percent of low-income Republicans agree with the 99 percent movement that “a few rich people and corporations have too much power in the U.S.” And given that nearly half of all Americans are one financial shock away from falling into poverty, it is no wonder that even Republicans are questioning their party’s priorities.

Economy

VIDEO: Two Days Later, Romney Gives Up Defending Comments About The Poor: ‘I Misspoke’

During an interview last night with Nevada reporter Jon Ralston, Mitt Romney attempted to walk back his statement that he is “not concerned with the very poor.” “It was a mistake. I misspoke,” Romney said:

ROMNEY: It was a mistake. I misspoke. I’ve said something that is similar to that, but quite acceptable, for a long time. And you know, when you do I don’t know how many thousands of interviews, now and then you may get it wrong. And I misspoke. Plain and simple.

RALSTON: What did you mean to say?

ROMNEY: Well, what I said was that my focus, my primary focus, is on helping people get in the middle class and grow the middle class. That we have a safety net that cares for the poor, I want to keep that safety net strong and able. The wealthy are doing just fine. But we really need to focus on the middle income people in this country. And you know what, if people are going to go after me when I make a mistake — when I slip up on a word I say, even when I say I got it wrong, sorry, that’s not what I meant — you know that’s part of the political process and I understand that.

Watch it:

However, Romney’s claim that he misspoke flies in the face of the fact that he’s used similar language before to explain his lack of concern for the poor. “The people who need the help the most are not the poor, who have a safety net,” Romney explained during an Oct. 20 town hall at Morningside College in Sioux City, Iowa. “The very poor have a safety net, they’re taken care of,” he said in an October debate.

According to the latest data, the percentage of Americans qualifying as “very poor” — meaning that they live in a household with an income of less than half the federal poverty rate — has hit a 35 year high, so they are decidedly not taken care of. And Romney’s economic plan wouldn’t make them any better off. In fact, Romney would raise taxes on 20 percent of households making between $10,000 and $20,000, because of his less generous tax credits.

Not only that, but his plan would cut critical safety net programs like food stamps and Medicaid, and limit the ability “to leverage federal resources to provide necessary social services to assist people in need.” As the Center for American Progress Action Fund’s Desmond Brown wrote, Romney’s plan “would provide $2.24 trillion in tax breaks to the superrich while cutting $2.17 trillion from critical health care services for poor and elderly Americans.”

Economy

House GOP Wants To Ban Use Of Benefits At Strip Clubs, Insists ‘It’s Pretty Rampant’

The GOP is cultivating a staggeringly disdainful view of Americans who are struggling to get by in the wake of the Great Recession. Seeking to gut the social safety net programs on which an increasing number of Americans rely, Republicans have demonized the poor as dependent, lazy drug-users who pilfer Uncle Sam for trips to Hawaii. In that vein, House Republicans are bringing a bill to the floor today to ensure that low-income Americans don’t use federal benefits to pay for “lap dances.”

The bill’s sponsor Rep. Charles Boustany Jr. (R-LA) says he’s trying to close a “strip-club loophole” which allows beneficiaries of the federal Temporary Assistance for Needy Families (TANF) program use state-issued debit cards at strip clubs, casinos, and liquor stores. “It’s pretty rampant around the country,” he insists.

Naturally, no one thinks adult entertainment is an appropriate use for TANF funds. But as Center for American Progress Action Fund’s Melissa Boteach notes, the use of funds at strip clubs, liquor stores, and casinos is hardly a “pressing national crisis,” but rather a politically valuable message for the GOP, regardless of its veracity, because it’s useful to the GOP to paint vulnerable Americans as “delinquent and criminally inclined“:

But putting politics above policy in this crass way is unfortunate and cynical. The Temporary Assistance for Needy Families, or TANF, program has experienced benefit cuts of more than 20 percent, after adjusting for inflation, even as the Great Recession and the slow economic recovery have caused elevated levels of unemployment and poverty. Many low-income workers on TANF are unable to access the child care they need to make work possible and ultimately end up paying nearly half their income towards care for their children. And low-wage workers are constantly facing the threat of a layoff because more than 80 percent lack access to a single paid sick day to take care of themselves, a sick kid, or an elderly relative.

And the big vote on TANF is about strip clubs?

This vote represents yet another instance in the creeping trend of conservatives to demonize the poor — and then threaten anyone who votes against the legislation with supporting “welfare spending” for strip club admissions. The tactic enables conservatives to imply that tough economic circumstances somehow make poor people delinquent and criminally inclined.

Boustany pushes the common refrain that such bills are an “obligation to make sure taxpayer dollars are spent appropriately.” But as Boteach points out, TANF and other social safety net programs are already subject to federal and state audits. And for measures like drug-testing welfare recipients, such proposals can cost thousands to catch one drug user because the positive test rate is so low.

At a time when nearly half of the U.S population is just one financial shock away from poverty, Republicans should focus on bolstering the very programs that ensure the economic security of families. Instead, Republicans seem committed to push a strip club stereotype for a political win while stripping vulnerable Americans of a safety net.

Economy

Romney: ‘I’m Not Concerned With The Very Poor’

Coming off his big win in Florida last night, GOP front-runner Mitt Romney told CNN this morning that helping the poor is not his priority, suggesting that Democrats worry enough about the “plight of the poor” already:

ROMNEY: I’m not concerned with the very poor. We have a safety net there. If it needs repair, I’ll fix it. I’m not concerned about the very rich, they’re doing just fine. I’m concerned about the very heart of the America. [..]

HOST: You just said said, ‘I’m not concerned about the very poor because they have a safety net.’ But I think there are a lot of very poor Americans who are struggling who would say, that sounds odd. [...]

ROMNEY: The challenge right now — we will hear from the Democrat party the plight of the poor. And there’s no question it’s not good being poor. And we have a safety net to help those that are very poor, but campaign is focused is on middle-income Americans. My campaign — you can choose where to focus. You can focus on the rich, that’s not my focus. You can focus on the very poor, that’s not my focus.

Watch it:

Later, Romney said, “we have a very ample safety net and we can talk about whether it needs to be strengthened or whether there are holes in it. But we have food stamps, we have Medicaid, we have housing vouchers, we have programs to help the poor.”

Romney’s claim that the safety net is “very ample” suggests a lack of understanding . While safety net programs kept seven million Americans out of poverty in 2010, according to a study from the Center for Budget and Policy Priorities, government assistance fell far short of insulating all, or even most, poor Americans.

But his comment is especially tone deaf considering that Romney has proposed weakening many of these safety net programs. Under Romney’s proposed reductions in federal spending, it’s likely that Medicaid would be cut by $153 billion by 2016, the food stamp program would have to throw 10 million low-income people off the rolls, and a key program supporting poor children’s health would face cumulative cuts of $946 billion through 2021. As ThinkProgress’ Igor Volsky has said that Romney is living in a “dream world” when he claims his Medicaid cuts won’t hurt the poor.

And Romney’s tax plan suggests his focus is really on the wealthy, as it includes massive giveaways to upper-income earners and investors, while doing almost nothing for middle- and low-income Americans.

NEWS FLASH

Nearly Half Of Americans Live One Financial Shock Away From Poverty | According to a report from the Corporation for Enterprise Development, a D.C. advocacy group, 43 percent of Americans would fall into poverty within three months if they were to experience a sudden financial shock, such as losing a job or facing a medical emergency. “Growing numbers of families have almost no savings or other assets to see them through if they lose their jobs or face a medical crisis,” said Andrea Levere, president of CFED. “Without savings, few will be able to build a more economically secure future, including buying a home, saving for their children’s college educations or building a retirement nest egg.” The tenuous financial position of so many households is due to a combination of “flat wages, the high cost of medical treatment and the nationwide drop in housing values leaving homeowners with less wealth.”

Economy

As His Own State’s Poverty Rate Hits 30-Year High, Mitch Daniels Calls Obama ‘Pro-Poverty’

Republican presidential candidate Newt Gingrich has repeatedly slammed President Obama as the “most successful food stamp president in history” on the campaign trail, and that line of attack — blaming Obama for the ill-effects of the recession and the pain that followed — has become a familiar GOP talking point. Indiana Gov. Mitch Daniels (R) struck a similar tune in his response to Obama’s State of the Union speech last night, ignoring his own state’s high poverty rate and blasting Obama for pursuing “pro-poverty” policies:

DANIELS: Contrary to the president’s disparagement of people in buisness, it’s one of the noblest of human pursuits. The late Steve Jobs, what a fitting name he had, created more of them than all those stimulus dollars the president borrowed and blew. [...] The extremism that stifles the development of home-grown energy, or cancels a perfectly safe pipeline that would employ tens of thousands…is a pro-poverty policy.

Watch it:

While Daniels claims Obama is “pro-poverty,” a closer look at his own state shows that it’s Daniels who is a pro at making people poor. Under Daniels’ leadership, Indiana’s poverty rate ballooned to 16.3 percent in 2010 — a three-decade high that is more than a full percentage point above the national average. In 2008, before Obama took office but a full three years into Daniels’ first term as governor, five Indiana cities had poverty rates of at least 20 percent.

Despite the rising poverty rate, Daniels has remained committed to making it harder for Hoosiers to get assistance. Enrollment in Indiana’s welfare program — which is among the stingiest in the nation — decreased during the recession because of stringent qualification requirements. The state cut food assistance programs, made it harder for kids to qualify for Medicaid, and cut funding for programs like Planned Parenthood that provide health care to low-income women. Daniels has also promised to sign right-to-work legislation, even though such laws reduce take-home pay by about $1,500 a year.

Meanwhile, Daniels’ criticism of the American Recovery and Reinvestment Act ignores the 64,000 Indiana jobs it had saved as of March 2010, and his “pro-poverty” quip fails to acknowledge that Obama’s defense of the social safety net from budget-cutting Republicans kept millions of Americans out of poverty.

In the middle of Indiana’s explosion of poverty and cuts to programs to help the disadvantaged, Change.org asked if Indiana was “the worst state for poor people.” While the answer to that isn’t clear, what is obvious is that when it comes to being “pro-poverty,” Mitch Daniels doesn’t have room to criticize anyone.

Security

Bill Gates: Development Assistance Must Continue Despite Global Economic Downturn

Bill Gates issued an appeal to policymakers to support foreign aid that tackles public health and poverty challenges in the developing world. Gates, writing in the the Bill and Melinda Gates Foundation’s annual letter today, highlighted the importance of foreign aid in global development and raising living standards in the world’s poorest countries.

The letter acknowledged that the global economic and political climate puts foreign aid expenditures under pressure, but warned that a cut in these funds could have severe implications for populations struggling to pull themselves out of poverty:

The world faces a clear choice. If we invest relatively modest amounts, many more poor farmers will be able to feed their families. If we don’t, one in seven people will continue living needlessly on the edge of starvation. My annual letter this year is an argument for making the choice to keep on helping extremely poor people build self-sufficiency.

Gates argues that investment in poor farmers can “increase their productivity so they can feed themselves and their families,” and “contribute to global food security.” The past fifty years has marked dramatic improvements in poverty reduction — global poverty levels have dropped from 40 percent to 15 percent — but Gates is concerned that the historic improvements could slow if funding for irrigation and agricultural research dry up:

We can be more innovative about delivering solutions that already exist to the farmers who need them. Knowledge about managing soil and tools like drip irrigation can help poor farmers grow more food today. We can also discover new approaches and create new tools to fundamentally transform farmers’ lives. But we won’t advance if we don’t continue to fund agricultural innovation, and I am very worried about where those funds will come from in the current economic and political climate.

The Gates Foundation — which has committed more than $25 billion [PDF] in grants since its inception in 1994 — has been an outspoken supporter of government funding of global public health and poverty reduction programs. Gates’s letter emphasized that development assistance programs “has a significant impact on people’s lives” and “modest investments in the poorest make a huge difference.”

NEWS FLASH

Census: Half Of Americans Are Either Poor Or Low-Income | A record number of Americans, nearly 50 percent, are either in poverty or considered low-income, according to Census data released this week. The data show a shrinking middle class beset by years of stagnant wages, high unemployment, rising health care and living costs, and a fraying government social safety net. “The reality is that prospects for the poor and the near poor are dismal,” Sheldon Danziger, a public policy professor at the University of Michigan, told the AP. “If Congress and the states make further cuts, we can expect the number of poor and low-income families to rise for the next several years.”

NEWS FLASH

Number Of U.S. Children Living In Poverty Increased By 1 Million Last Year | More than one in five children in the U.S. lives in poverty, according to 2010 Census data, rising from 14.7 million children in 2009 to 15.7 million in 2010. According to Census figures, the child poverty rate increased in 27 states. At 38.2 percent, African American children had the highest rates of poverty, while white and Asian children were below the national average. The rate for Hispanic children was 32.3 percent. “Children who live in poverty, especially young children, are more likely than their peers to have cognitive and behavioral difficulties, to complete fewer years of education, and, as they grow up, to experience more years of unemployment,” the Census said.

Economy

New Census Data Shows Safety Net Programs Keep Millions Out Of Poverty

Our guest blogger is Desmond Brown, a consultant for the Half in Ten campaign at the Center for American Progress Action Fund.

The U.S. Census Bureau today released new data that provided a more detailed picture of poverty and hardship in the United States. For the first time, the Bureau released 2010 poverty statistics under a new Supplemental Poverty Measure (SPM).

The SPM includes a more comprehensive list of items in determining the number of Americans who are poor. It reflects items such as work related expenses, out of pocket medical costs, and child care expenses. At the same time, the SPM factors in tax and transfer programs such as SNAP/food stamps, the earned income tax credit, and housing subsidizes in determining those who are poor.

As a result of this more detailed analysis, the SPM offers a slightly different picture of poverty than the official poverty measure, which was released earlier this year for 2010. Overall, the SPM presented a higher rate of poverty than the official measure, showing 16 percent of Americans living in poverty, as opposed to 15.2 percent.

One of the major improvements of this new analysis is that it provides a better picture of the impact of government programs such as the Earned Income Tax Credit and school lunch. These safety net programs were tremendously effective in 2010 in keeping vulnerable Americans out of poverty. Below is an illustration if their impact:

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