Sunday, November 11, 2007

Are The Poor in America Really Getting Poorer?

Excellent Walter Williams column, VERY worth reading it all, but a highlight quoted here. As Jesus said, "the poor will always be with us". Why? Well, because if you decide call the bottom 1/5 of the population "poor", then there will ALWAYS be a bottom 1/5. They may have two cars, air conditioning, color TV and more space than the middle class in Europe and Japan, as those in the US do, but RELATIVE to the rest of the US, they will be "poor". Relative to something like 70% of the people on the planet, they are RICH! As Dinesh DeSouza says brought him here; "I want to live in a country where the poor people are fat!".

Having a lot has never prevented people from being envious. Jimmy Buffett with only a Cessna Citation jet is envious of someone with a Gulfstream. The US "poor" are envious of those that have more, and typically so is the middle class-envy is fun! No matter what you have, you can always want more-especially if you don't look at the "costs" in effort, risks or other changes that would get you to that "more" that you desire.

In the US however, if you ARE willing to look at that other side of that coin, the evidence is strong that you can move up that income ladder, and in fact have a 30% chance of moving into the TOP 1/5th from the bottom. None of this will ever be good enough for the lefties though. Like suicide bombers, they don't really care if their policies take EVERYONE down including themselves and the poor they are supposedly helping.

To a lefty, it is worth seeing an honest poor person actually hungry if that will get some upper 1/5ther to have to vacation in FL rather than taking a cruise this year. It makes no difference if that poor persons problem without the "help of the left" would have been "buying a smaller color TV than they wanted" vs going hungry. The important issue is for that upper 1/5ther to feel some "sting", then mission accomplished! What's a little collateral damage if the "rich" have to "pay the price"?

As study after study as shown, if you are able to get and stay married and work reasonably hard, success in the US is as close to a guarantee as anywhere in the world.
What do you think distinguishes the high and low poverty populations? The only statistical distinction between both the black and white populations is marriage. There is far less poverty in married-couple families, where presumably at least one of the spouses is employed. Fully 85 percent of black children living in poverty reside in a female-headed household.

Poverty is not static for people willing to work. A University of Michigan study shows that only 5 percent of those in the bottom fifth of the income distribution in 1975 remained there in 1991. What happened to them? They moved up to the top three-fifths of the income distribution -- middle class or higher. Moreover, three out of 10 of the lowest income earners in 1975 moved all the way into the top fifth of income earners by 1991. Those who were poor in 1975 had an inflation-adjusted average income gain of $27,745 by 1991. Those workers who were in the top fifth of income earners in 1975 were better off in 1991 by an average of only $4,354. The bottom line is, the richer are getting richer and the poor are getting richer.

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