Name: Poverty, by America
Rating: 3.5 (21 reviews)
Author: Matthew Desmond

What’s in it for me? Find out what can be done to end poverty in the United States.

One in nine Americans. That’s how many people in the United States grapple with poverty. A whopping 38 million struggle to secure fundamental necessities; no less than one million public school kids are homeless, and at least 30 million people don’t have basic health insurance.

These figures become even more alarming when you take into account just how affluent the United States is. The country’s gross domestic product is so colossal that you could combine the economies of the third, fourth, fifth, sixth, seventh, and eighth wealthiest countries in the world, and the result would still fall short of the US’ economic prowess.

In a country that’s such a massive powerhouse, it’s puzzling why people continue to experience poverty. In 1970, just under 13 percent of the population was poor. Five decades later, that figure has only dropped marginally, to 10.5 percent.

Why is that so?

Well, what most people don’t realize is that poverty extends far beyond the issue of limited income. It’s a complex tapestry of material scarcity, interlinked with multiple social challenges, including housing, health and education.

In the Blink ahead, we’ll delve into how these factors contribute to poverty, and what the government and community can do to abolish it.

End the exploitation of workers

If you think of worker exploitation, what comes to mind? Child laborers from former times, perhaps, or factory personnel in inhumane conditions? In some places, these atrocities still exist. But there are also modern-day versions of labor exploitation that many people are unaware of.

Firstly, there’s low wages. When you account for inflation, the wages earned by most Americans today are nearly the same as they were four decades ago. In fact, the annual increase in inflation-adjusted wages since 1979 has barely scratched the surface, edging up by a mere 0.3 percent. Even in 2020, at least one million workers were compensated with hourly wages that sat at or below the minimum of $7.25.

Unfortunately, corporations are reluctant to initiate wage increases themselves, fearing that increased labor costs might impact profits and, subsequently, their market value. To tackle this, Congress should take matters into its own hands. It needs to raise the minimum wage and prioritize it in the same way that it prioritized workplace safety regulations.

However, it's crucial that the minimum wage is also reviewed and adjusted regularly, to keep pace with economic changes. Rather than depending exclusively on Congress, the authority to set the minimum wage should be delegated to the central government or a specifically appointed individual, such as the Secretary of Labor. Another more favorable strategy could involve empowering employees and employers to jointly negotiate and amend the minimum wage through collaborative bargaining agreements.

In addition to the concern over inadequate wages, temporary work also impacts economic well-being. Using temp agencies to fulfill their manpower requirements allows corporations to reduce their obligations to workers and increase their cost savings. For instance, tech company Apple boasts a global workforce of approximately 750,000 individuals. But a mere 63,000 of these are directly employed by the company itself.

Being an independent contractor or temp worker impacts an individual’s work benefits and compensation. These workers aren’t covered by employee benefits and minimum wage laws. They don’t get sick days, overtime pay, or even unemployment insurance. Additionally, temp workers can’t pursue promotions because they aren’t employed by the company in the first place.

How can independent contractors have a voice then? The answer lies in union power. Historically, unions have been instrumental in advocating for fair working conditions and compensation. Regrettably, organized labor saw its downfall in the early 1980s, when corporations realized they could easily onboard new hires to replace unionized workers who went on strike. Employers continue to obstruct unions today, threatening workers with business closure and job loss, and leaving a significant 94 percent of private sector workers without union representation.

Implementing new labor laws that streamline the process of organizing and promoting sectoral bargaining would address these disparities. An approach like this aims to organize workers not only within a single store or company but also across an entire sector. By doing so, a broader range of workers – encompassing both independent contractors and full-time employees – can gain empowerment.

Eradicate consumer exploitation

Exploitation doesn’t end when the poor clock out of work – it persists in their daily lives through so-called consumer exploitation.

Put simply, consumer exploitation happens when you pay more than something is worth. For instance, if a handmade bag is worth $25 but the vendor sold it to you for $100, you’re being exploited as a consumer.

Rebalance social safety net policies to support the poor

With the prevailing poverty in the US, you’d think the government wasn’t doing anything to help. But in reality, there are a host of social safety net policies already in place, ranking the US as the country with the second largest welfare state system next to France.

Between the years 1980 and 2018, expenditures on antipoverty initiatives grew substantially by over 230 percent, to almost $3,500 per person. For the health coverage program Medicaid alone, federal government spending reached over $520 billion in 2021. Then, there's the food stamps program that provides assistance to nine million Americans, and the unemployment insurance that supported over three million people throughout the COVID-19 pandemic. Income-boosting tax credits, like the Earned Income Tax Credit and Child Tax Credit, are two of the biggest antipoverty initiatives helping those in need today.

Integrate, not segregate

From the outside, it looks like modern-day America has significantly moved past the deep-seated racial divide that marked the 1900s. However, while the overt signs of segregation may have been diminished, a subtler, less visible form of segregation endures beneath the surface. This comes in the form of exclusionary zoning laws.

Exclusionary zoning laws dictate the types of properties allowed in residential areas. While they might appear to be reasonable regulations, a closer examination of these ordinances reveals that they’re actually designed to shut out specific groups of individuals. That’s because people from various socio-economic backgrounds tend to inhabit different types of properties, as seen with the affluent living in expansive mansions and the less privileged occupying apartment complexes. By prohibiting the construction of certain kinds of housing in communities, exclusionary zoning laws are effectively saying to the poor, “You’re not welcome here.”

Participate in the fight against poverty

It’s no secret that the government and huge businesses play a pivotal role in abolishing poverty. However, this responsibility doesn't rest solely on their shoulders. You – in your own small or big way – can also contribute to the cause of poverty eradication.

Start with changing the way you do certain things. For instance, champion integration in your neighborhood. When you get to know the underprivileged, you become exposed to their personal challenges and concerned for their well-being. This will ultimately push you and your peers to care more about antipoverty initiatives and public services.

Key ideas in Poverty, by America