Myths surrounding poverty, such as that single moms are the problem, absent dads are the problem, no one goes hungry in America, poverty has little lasting impact on children are just that – myths.
- Only nine percent of low-income, urban moms have been single throughout their child’s first five years. Thirty-five percent were married to, or in a relationship with, the child’s father for that entire time.*
- Sixty percent of low-income dads see at least one of their children daily. Another 16 percent see their children weekly.*
- One in six Americans lives in a household that is “food insecure,” meaning that in any given month, they will be out of money, out of food, and forced to miss meals or seek assistance to feed themselves.*****
- Research is clear that poverty is the single greatest threat to children’s well-being. Poverty can impede children’s ability to learn and contribute to social, emotional, and behavioral problems. Poverty also can contribute to poor physical and mental health. Risks are greatest for children who experience poverty when they are young and/or experience deep and persistent poverty.*****
One more myth to debunk is that going to college will get you out of poverty. The fact is that in 2012, about 1.1 million people who made less than $25,000 a year, worked full time and were heads of household and had a bachelor’s degree.**
These facts illustrate the misperceptions many people have about poverty and who and what is to blame. Raising the minimum wage is one way to lift people out of poverty. Theoretically, more take home pay means a better chance for economic self sufficiency. What often happens is the ”cliff effect.” The cliff effect is the paradox that as low-income families work harder and earn more, they can end up worse off financially. Benefit programs that help low income families meet their basic needs – including food, housing, childcare and health care – are tied to income levels. A cliff occurs when a small (or even temporary) wage increase triggers a significant reduction or loss of a benefit. The value of the lost or reduced benefit can far exceed the increase in wages. As a result, the overall monthly income for a family will fall precipitously – well below the income level needed to attain economic self-sufficiency.***
Kathryn Edin, a sociologist at Johns Hopkins University, has done extensive work on families living in poverty. She, her husband, and children, lived in Camden, NJ just a few blocks from a notorious public housing project. Edin documented “that most moms on welfare were already working under the table or in the underground economy, and that lovers, friends, family, and the fathers of their children were pitching in to help. They didn’t have legal jobs because of a straightforward economic calculus: Low wages, drained by child care, transportation, and other expenses would have left them poorer than they were on welfare.”****
What does all this mean? A raise of the minimum wage to $10.10 would help families keep their benefits. These families would still qualify for childcare subsidies. A raise to $11 to $11.50 means families begin to lose their benefits.
To achieve self-sufficiency, benefit eligibility levels should be changed. Means testing should be phased out as income increases, or eliminated altogether, so that low-income families can receive the necessary benefits until economic sufficiency is achieved. Employment assistance, skill enhancement workshops, availability of good child-care facilities, and mentoring are necessary for successful job placement.
The benefit to achieving economic self sufficiency is that parents can provide for themselves and their children with no outside assistance (government programs such as food stamps, housing assistance, Medicaid, or child care assistance). That a win win outcome for everyone.
As a concerned AAUW and community member, join with me to urge our legislators to act on SB1300 and HB2437 – get them out of committee and onto the floor for a vote.
Sources: *Analysis by Dr. Laura Tach at Cornell University. **US Census ***Greater Cincinnati Foundation, ****Written by Stephanie Mencimer, Mother Jones, March/April 2014 Issue, *****U.S. Dept. of Agriculture, National Center for Children in Poverty