There are many ways to stay locked into poverty. The repeated, depleting experience of temporary employment is one factor which leads to a cycle of staying in poverty. Working for no-wages, such as trainees do on workfare benefits, is another path to poverty, as workfare does not pay for the transportation to the job, for uniforms and tools. In the meantime, while one is working as a trainee or in an unpaid internship, the rent must still be paid and the electrical bill. The money to pay for ongoing expenses is often borrowed from friends, family, and through expensive loans. As borrowing exceeds money coming-in, debt increases. There is no money for new shoes for the children or any frills. Often there is no money for heat.
A new study on Britain's poor may provide insights into poverty everywhere.
There are whole groups of jobs which do not require a degree, which pay less than minimum wage and which appear to guarantee episodic employment. If you are receiving public benefits contingent upon having a job, these low -wage jobs are enough to qualify as employment. Since there are so many competing for these low wage/below minimum wage jobs, wages stay low. Who can object? Quitting demeaning, dirty and dangerous jobs which pay poorly is one way to express discontent with a job and how it degrades human labor and pays almost nothing. Quitting leads to more temporary employment experiences and to having to look for work again, and the long slog to get another low-wage, undesirable job. Debts remain and need to be paid.
And yet those interviewed in this study in Britain saw themselves not as ‘poor’, but as workers who were ‘not doing great, but doing alright’. It was a puzzle to me how individuals could go through this grinding cycle of jobs on and off for years and on and off benefits for years too. It seems a cruel joke to play on those unlucky enough to never have a decent job with good pay, good benefits, and an employer commitment to retain the employee. Those jobs rarely lead to a better job with better pay. The rare employer paid for an employee to attend school for more education, but most of the interviewees experienced a grim rotation from job to job and then to benefits if the jobs were not there when they needed them. And yet the workers saw themselves as lucky to have jobs and grateful for the work when it came to them. They appeared to accept the uncertainty of their work lives and their accumulating debts.
In my opinion, without a government program to create decent-paying, meaningful middle-class jobs, the dynamics of the free market system of capitalism are for prices to rise until the rich auction winners take all the over-priced necessities which none of the impoverished-rest can afford. Conversely, in a perverse downward competition to get hired, more and more are compelled to accept wages which do not do much more than show welfare police that a person temporarily, ‘has a job’.
Even persons with education fell into the poverty mill. No group was immune from falling.
This is the poverty trap, English Version. Middle-class Americans should scrutinize this study carefully, because it is an opportunity to look at poverty without preconceptions and prejudice. Distant views sometime help improve comprehension. The lens is somewhat less clouded by what we do not unconsciously wish to know, and somewhat more clear of fears of what we might see when the view is of struggles far off from here, across the great waters.
The symptom of poverty which pundits rail against is child poverty. All are in agreement that this is destructive. But how many agree that all jobs should pay a decent wage and that healthcare and education should be universal and free? Guaranteed income for the unemployed and guaranteed jobs could eliminate poverty for all time. Poverty does not begin with child poverty; it ends in child poverty.
Drawing is from Les Miserables, a novel by Victor Hugo.



28 Comments

Dear Editors, Thanks for arranging Little Gavroche so well in the post. He is a hero of Les Miserables. Born to Ms. and Mr. Chenardier and rejected to live in the street after his parents sold two other children for money to the mistress of a Duke, he became a pickpocket. Bold, defiant, caring for other lost children, stealing a stolen wallet from a thief to give the stolen money as alms to a starving churchman, and scavenging workable cartridges from the pouches lost on the barricades,…he is fearless. Little Gavroche, the eternal survivor, determined to hope for a better future, despite all the evils of destitution and the acidic, oxygenlessness of a society which refuses to ‘see’.
Strategies for and the importance of avoiding the snares of debt are now completely sweep from sight in most of our nations schools and curriculum. Pick your spot in the economic food chain, if you are fortunately born enough to have the choice. Socialized health care and public education bottom to top are not unaffordable dreams. Simply a matter of forced world slavery prioritized over individual freedom, agreed.
Nice article, thank you.
X2, nonquixote.
And especially your final paragraph, TomThumb. Let that one ring abroad!
Your final sentence as well. Nice work, my friend.
And I’dd add that the IMF, World Bank, and
)…dunno where the comment box went)
‘other financial fiends know from every model that if we ain’t got nothin’, can’t buy what’s for sale, it all goes to hell. But, maybe that will be okay in the long run, but for those going hungry, and dying for lack of health care (especially alternatives to AMA)…it’s all truly wrong and immoral.
Thanks Wendydavis!!
If you love listening to the voices of the people participating in these ‘natural’ analyses, you will want to read about how the people struggled with the JobSeekers Allowances when they could not find work and had no choice but to apply for benefits. Their commitment to finding work was unshaken and they were frustrated by the system which they could not understand and navigate, and which they felt that they could not impact through communication. Many of the services for long-term unemployed were effective but not available to those who were short-term “churning” unemployed, or between jobs. So the system failed to help those in need of ‘hurdle help’, to navigate securely between jobs when the jobless gap was small. There was stigma attached to seeking benefits and many went without help they qualified for. Despite lifetimes of securing short periods of work they remained ardently pro-work and saw the psychological benefits of having a job for themselves and for their families. But basically, of necessity, they would take any job at practically any wage.
Thanks for this post!
Didn’t make it very far into the report at your link, but cripes, adding in debt the folks were carrying, argh. But yes, they made the point about not being able to be part of ‘the market’ as well. Idiotic capitalist MOTUs, not just greedy, I guess.
By the by, I read your good post about the Precariat class (stelath rec’d), and ran into the term somewhere else later (maybe Naked Capitalism?). Oy.
Thanks TomThumb. Recommended.
O/T – from cepr
Press release
Document summary and link
Outstanding read thanks and rcc’d.
Aside from some of the service differentials in the UK and USA, that model fits well upon our masses of unemployed and under employed.
Our present admin had 4 years to rip the covers off the work needs but failed to match FDR in his time. I don’t expect the next 4 years to be any different.
All I know is this system is unsustainable, as all empires are when they neglect the needs of the masses.
You know the 1% blames empire on the 99%. It’s your fault any way they look at it.
They are moral frauds.
Forget it. That’s not government’s job, even if it could do it, which it can’t. There is a need for more creativity to deal with changing conditions because the good old days aren’t coming back.
Jobs.
Plenty of work needs doing, some of it critical for even physical safety, like our nation’s crumbling bridges–and crumbling nuclear power plants, of which regulators could require a lot more.
We could also fix it so that kids don’t have to start their careers $200K in hole because they had the nerve to want a college eduction.
There are so many productive ways in which the economy could be fixed. We know a lot of them because they worked in the past.
We seem to prefer bank bailouts, corporate welfare, de-regulation (or industry friendly faux regulaton), throwing hundreds of millions of dollars down black holes, like Solyndra and wasting whatever remains.
Heydonbacon@11 ,how about $4trillion over 10 years by legalizing drugs and letting organized crime take the hit ? Since you are making a Wall St. contention ,I could also surmise you actually desire austerity to create an even more depressed economy for fire-sale pillaging of hard assets ,privatizing positional assets ,and deregulation of all monopoly holdings .
I hope you aren’t Jewish or Muslim ,because with the growing hatred of both groups , you might not have that much time to luxuriate in your anti-Keynesian creativity .
Hi Marym in IL!
I could not find in Woo et al, a projection of how much of the projected gap would be closed by removing the FICA cap.
But duly bookmarked.
(The MOTU have not given up, just pivoted to sing the praises of entrepreneurs like Huffington and Wall St.. They will be back.)
Thanks wendydavis
The Precariat describes the whole bunch of us who are being ground down by temporary and insecure jobs, excessive debts, lack of worker’s rights, and a reduced, dysfunctional safety net, according to Guy Standings book.
Thanks for clarifying that.
Best,
TomThumb
Let’s hear some positive creative alternative suggestions. Let them roll.
Meanwhile, the MOTU are busy suppressing free speech, blacklisting those who protest so that they cannot work, and maintaining the status quo through force.
I read this essay, which (to me) illustrates an American version of poverty.
Sorry–I don’t know how to properly form a link. Here’s the URL:
https://www.msu.edu/~jdowell/135/JGParker.html
Today’s poverty is the worst in my lifetime, and I’m an old man. There are many “created” sources of this poverty; but the bottom line is that all of them began at “The White House”. That house hasn’t changed since the first Bush election, the one they stole in Florida. What we know and what we see, is a magnificent puppet show.
Hi otchmoson!
Thanks for the link. You can post a direct link like that, I guess. Or you can hit that button shaped like an infinity sign, an eight on its side, or a piece of chain, then delete the extra http in the box, insert / copy your link into the box and Enter.
The material you sent was really powerful. People are putting up with conditions of indescribable suffering.
In my usual haste, I’d forgotten to mention how key restoring unions is for wages and benefits, both here and in Britain. This piece at Counterpunch (and another above or below it on their list of posts) talks about some of the whys involved in continually declining union membership while workers actually *want* to join unions.
That break-away unions are starting to be formed outside the big ones captive to the Democratic Party is a trend that needs to increase.
Hi wendydavis!
Thanks. Did you know that in Norway the unions are part of the government? They have tried to enshrine labor rights after the troubles in the last Great Depression. Norwegians have also privatized some industries which had been nationalized and lost a great number of jobs doing so, but that could change.
Without an economic bill of rights,’ freedom’ is meaningless.
Funny how people who can rightly see that poverty is simple victimization of the poor by the rich when we’re talking about faraway places, or distant times, fail to see that and resort to ad hominem attacks about the supposed laziness and shiftlessness of the poor when it deals their present circumstances. Even though you can show them that the rates of moral failings and “shiftlessness” varied historically from 25 % down to 2 % in the span of less of a decade.
-stewartm
The problem is capitalism cannot create full employment, period.
For all the heavy breathing and advocacy about the supposed virtue of work, it’s funny that nearly all those spouting all those histrionics are dead-set against a government-backed program of *guaranteed full employment*, not isn’t it? If you don’t have a job, go down to your government employment office and they’ll assign you one, at least at the minimium wage (which should be higher to allow for buying the necessities of life), but also one offering higher than minimum wage if you have the training or skills.
Such a program would not only eliminate poverty, it would also improve the lot of those who work in private employment already. It would set a “floor” of wages, and for fair and decent treatment and benefits–if an employer abuses his workers, or (Walmart-like) reneges on their benefits, then those workers can just leave and know that they can get income by going to work for the government program. Employers will then have to meet or more likely exceed the wage/benefit/fair treatment standards of the government work program or else go out of business.
But that’s exactly why it hasn’t happened. Not that it wouldn’t be good for everyone–it would. But capitalism is even more about gaining *power* than it is wealth. The more government-activist economy of 1947-1973 in the US generated more wealth for everyone, including the rich. But by doing so, it increased the wealth of the bottom 20 % as well, which effectively dimished the *power* of the rich. There’s nothing more hated by rich people than the hired help being able to tell the boss “to take this job and shove it”. Capitalism shows its feudal roots that way.
-stewartm
The Class war waged these last 40 yrs. is almost over and we the 99% have lost. The final phase is underway as the plutocracy/corpocracy eliminates as many public service jobs as possible and gets rid of the rest of the New Deal social safety net, oh ends medicare as well. Private Unions are almost completely gone and the few left are weak. In short, the 1% and it’s totalitarian /right wing Gov’t allies have won. They’re goal a return to what they see as a more “natural social order”, of the few ( 1%) masters class and a massive poor servants class. When they change the electoral college system, as they are presently suggesting be done only in blue majority states, the transition to a system where they have total control will be complete. All avenues for political control will then will be frozen in place. Voting will become more and more restricted till we have only propertied and largely white voters. Game over. The only path to change will then be Revolution and they’re prepared for that as OWS showed so clearly.
But the result of all their Galt-ing, if what you say is true, will be economic and environmental collapse, that eventually will bite them as well, just like the collapse of Rome took down the Roman emperors and nobility. Actions have consequences, and the non-solution “solutions” offered up by the Right will only make things worse, not better.
-stewartm
Own the tools of your production.
From: I will no Obey, Utah Phillips
@1:04 You know you love the country and they state if they deserve it..
@1:40 Anarchy is not a noun but an adjective….
All Used Up
Hey stewartm@26 ,I get really solid info ,albeit 3rd party ,that the global oligarchy are Malthusians who believe their survival will be assured via depopulation .Radically reducing the planet’s carrying capacity via famine ,wars ,disease and draught will be the cherry on the cake .
Nobody believes they are that smart ,but they have a great fix on how shallow and simple the masses are ,and know how easily corporatized thinking can be manipulated for leading the sheep to slaughter.
In the big picture ,I differ with you on the Right distinction .It appears to be one big ship of fools insofar as politics is concerned .