Advocacy for the Poor

Lower socioeconomic status in childhood has been linked repeatedly with lower educational and income levels in adulthood, which in turn predict health status. Children in poor families are about seven times as likely to be in poor or fair health as children in the highest-income families.
The gap between the wealthiest and the poorest among us continues to widen at dizzying rates (Center on Budget and Policy Priorities, 10/22/2008).
- In 2006, average pre-tax incomes for the wealthiest 1% in America increased by $60,000. That same year, the pre-tax incomes for the bottom 90% of Americans increased by only $430.
- Before 2006, the last year that the wealthiest 1% of the population reaped that large a portion of the nation’s income was 1928.
The U.S. Census Bureau reports that the U.S. poverty level has increased between 2007 and 2008, coinciding with the current economic recession. Also, median income levels have decreased across almost all U.S. social groups, “family and non-family households, native- and foreign-born households, households in three of the four regions, and households of each race category and those of Hispanic origin.” (Income, Poverty, and Health Insurance Coverage in the United States 2008, U.S. Census Bureau).
- The median household income in the U.S. dropped 3.6%, from $52,163 to $50,303 between 2007 and 2008. This drop follows three years of income increases.
- Households maintained by people over age 65 seem to be faring the current economic crisis the best, as that is the only social group whose income and poverty rate was statistically unchanged.
- Both men and women who have full-time, year-round employment saw salary decreases; however, women’s median income decreased by 1.9% while men’s median income only decreased by 1%. Women’s median income dropped to $35,745 while men’s income dropped to $46,367.
  - Though the current economic crisis has increased everyone’s hardships, the Center for American Progress reviewed the economic data and found that poverty affects women disproportionately in good times and bad.

The Consequences

The U.S. Census Bureau’s recently released study on Income, Poverty, and Health Insurance Coverage in the United States 2008 reports that the South fared worse than any other U.S. region between 2007 and 2008.
- Median income in the South decreased by 4.9% compared to the Midwest (4%), West (2%) and Northeast (No change). The South already trails the other regions in median household income--$45,590 in 2008, compared to the West’s high $55,085.
North Carolina issued a state Earned Income Tax Credit (EITC) beginning with residents’ 2008 earnings. An EITC is a credit that low- to moderate-income families can claim when they complete their tax returns. In 2008, families making less than $41,646 were eligible for the EITC. EITC Carolinas reports that people who qualify for the EITC can receive a tax credit up to $4800 annually; however, the “average credit is $1,735.”
The EITC helps put money back in the pockets of low-income family earners AND business owners, as families spend most of their EITCs at local NC businesses. The current EITC is 3.5% of the federal EITC; however, in 2010 that number will increase to 5.0% of the federal EITC.

Taking Action

A living wage is one that covers all the basic needs of a person or family, including: housing, childcare, food, transportation, healthcare, taxes, and miscellaneous expenses. Advocates for low-income and poor families focus on getting living wage laws passed in states around the country because a living wage is generally higher than state and federal minimum wages. Many adults who work for 40 or more hours a week are still poor simply because their minimum wage jobs do not cover the necessities. In Forsyth County, the picture for low- and minimum-wage workers is not promising:

The typical food preparation and service employee in Forsyth County makes $8.29 per hour. The average office and administrative support employee in Forsyth County makes $13.48 per hour (calculated for one adult supporting a child). Both wages are higher than the current minimum but lower than Forsyth County’s living wage Poverty in America, Living Wage Calculator.

Living Wages in Forsyth County

When families earn barely enough money to make ends meet, they can’t afford to stash any money away for a rainy day. Being unable to save puts them in a precarious position, especially when employers are regularly cutting workers. “Asset poverty is defined as the lack of sufficient financial resources to remain above the Federal Poverty Level for three months without earned income” Action for Children, 2009 North Carolina Child Economic Opportunity County Cards.
Some researchers believe that asset poverty is a better indicator of true poverty in times like these because it takes into account resources that families can turn into cash. By that measure, Forsyth County is struggling. According to Action for Children’s study, 31% of families in Forsyth County are asset poor.

Resources