A War on Poverty

So what would a real War on Poverty look like? Well, first of all, unlike other wars, this one would be steeped in justice. Justice that seeks the the equality of all people, not just the beautiful, famous, or rich. We are all created equal, but soon after that, the world makes us unequal. That's the whole point of advertising in our society...I am (somehow) inadequate because I don't have ____.

One of the most common battle strategies is a three-pronged attack. If we apply this strategy to the War on Poverty, what would the three prongs be? Well, one would be the provision of human services...and the most basic of these is universal health care. I shouldn't be unable to get medical treatment when I need it. I'm sure that there are those of you who believe the party line that all people on Medicare/Medicaid have to do is go to the doctor or hospital and they're treated, which is a farm-sized load of fertilizer. I've been in the ER waiting room at a hospital in the projects while my wife worked as a hospital chaplain...there is little medical care given, and what little is given seldom includes mental health, even though there is little doubt that many of the poor are stuck in poverty in part because of the poor state of their mental health. In almost every case the manner in which it is delivered strips from the patient what little dignity remains.

The second prong is affordable transportation. You can be neither a producer nor a consumer if you are unable to travel to a place of business. For all of the talk about a "service economy", "telecommutting", and "virtual companies," society still relies on grocers, pharmacists, doctors, and clothiers. Someone has to manufacture goods and someone has to sell goods. Every dollar that I spend on transportation is one dollar less that I spend on consumer goods. You might argue that by owning a car (and providing my own transportation) that I am contributing more to the economy, and in a sense that would be correct. After all, when I own a car, I pay repair bills, insurance bills, maintenance bills, and fuel bills. Of these, fuel is typically the greatest on-going cost, surpassing even insurance. However, the largest portion of monies collected from the sale of gasoline go back to the company manufacturing the gasoline, which is a part of the local economy for very few of us. The local fuel station retains only a very small percentage...you're improving the economy...somewhere...for someone.

The third prong is a fair tax rate. So what's a fair tax rate? Hell if I know...but I do know that when tax rates are cut across the board it favors the wealthy. Consider the following example.
Mr. TK makes almost twice the minimum wage, earning $20,000 per annum and is taxed at about 10% so he's really living on $18,000, or $1,500 a month. A little more than half of that pays rent. (Before you start arguing, urban rent averages about $800 a month...it's a little less in markets where the housing market is hot and more where they're not.) Now, he knows he's not rich and can't afford a car, so he'll take public transportation...which will get him almost anywhere in the city for about $50 a month...so he's down to $650 for the month. So let's see...where's he going to spend all that dough. Well, he needs electricity...there's $100 a month (I'm being generous there)...so he's at $550. He needs running water...and he's down to $500 (again, generous). He needs food...so he's down to $400. He can't go around naked, but he can shop at the thrift store (this assumes his employer has a relaxed dress code), and he's got to wash those clothes...so he's down to $375...so he'll be OK, as long as he goes without insurance or anything else that we consider a luxury and as long as he never has an emergency. (All of this is based on a single person...and contrary to the proverb, two cannot live as cheaply as one...unless one doesn't do anything, including eat, drink, or wear clothes.)

On the other hand, Mr. SK makes a salary that's three times Mr. TK's salaray ($60,000 per annum)...and to make it fair, we'll say that he's taxed at three times the rate of Mr. TK...his disposible income is reduced a much greater degree (to $42,000), but instead of having only $375 at the end of modest expenses, it's $2,375. Now, that's still not a lot of money...because we've only scratched the surface of what we need and our estimated costs are low, but at the end of the month, Mr. SK is left (after the same modest expenses as Mr. TK) with more than Mr. TK started with.

So, is Mr. SK's tax rate (that is 3x's Mr. TK's) fair? Fairness is a relative term...something can only be fair compared to something else, even if that something else is an ideal rather than a real situation. So, I guess whether or not you see Mr. SK's rate as fair all depends on your definition of fairness. The tax burden Mr. SK suffers certainly doesn't leave him in a desperate situation the way Mr. TK's does.

There are only two things Mr. TK, or any entity, can do to improve the bottom line -- 1) increase income or 2) decrease expenses. So how can Mr. TK improve his income? Improving his education/training is one way...of course his parents probably made less than he does...so no Ivy League for him...it'll be a state school with a much less enviable reputation...and with tuition plus room and board typically running $10,000 a year he's going to be $40,000 in debt just to graduate. That $40K debt means he's going to need to make more than $20K just to break even every year. How else can he improve his income? Well, we could raise the minimum wage...that might do it...but remember he's making almost twice the minimum now. Besides, as soon as his income goes up, so do his taxes...so it's a self-reinforcing cycle.

So what's left? Why, decreasing expenses, of course. Mr. TK can easily do without the one cup of coffee, that one candy bar, or that one pack of cigarettes each week that is the only thing standing between him and the crushing depression that comes with the realization of just how deperate his life is and makes him a dangerous man. (Anyone is dangerous when pushed to the extremes of despair and kept there, whether they are kept there by a person, government, or the universe itself.) The only alternative is to somehow reduce his expenses in other ways...such as governmental aid. Section 8 housing, food stamps, public health insurance...however the aid is given it is sorely needed...hence the necessity of human services as a prong in our three-prong attack.

And why is all this important...why have a War on Poverty? Because with this war we actually decrease the danger in the world. (Poverty is dangerous...remember the French Revolution?) Because with this war the outcome is life and not death. Because with this war we re-affirm statements put forth in our Declaration of Independence...that all are created equal. Because with this war we have a chance to win.