Why an alternative federal poverty measure will drive smarter policies to bring more families into the middle class

By Melissa Boteach and Jitinder Kohli

“If you can’t measure it, you can’t manage it,” said New York City Mayor and business magnate Michael Bloomberg in 2007 describing the need for an updated poverty measure.

Now it seems he is getting his wish. The U.S. Census Bureau announced today that it will be developing an alternative way to measure poverty. This new method will better reflect the realities facing struggling families and ways in which current government programs can help them to get back on their feet. Unlike the traditional poverty measure, which is based in a 1960s reality, this supplemental measure will provide a more accurate accounting of household budgets and better determination of whether a family has enough resources to meet its most basic needs.

The Census Bureau has published a number of different alternative poverty data for many years and will continue to do so. But this new measure will accommodate updated research and modeling, and will be released alongside the traditional poverty data in 2011, ushering in a new public understanding of how well we are doing in ensuring that more families are able to meet basic needs and ultimately to join the middle class.

The new measure is not designed to replace the traditional measure. Eligibility for more than 80 public benefits is tied in some form to the current federal poverty measure, which will continue to be a useful tool in administering programs. Issuing a supplemental measure will not change eligibility for any government benefits or in and of itself cost the government one penny in additional poverty program expenditures.

Read more »

More than a million and a half Americans could lose their jobs if the Senate does not act soon. Millions of Americans will immediately lose their unemployment insurance benefits if the Senate doesn’t act to extend unemployment insurance and COBRA subsidies by the end of next week. And state and local governments are slashing budgets, getting ready to lay off firefighters, police officers, and teachers.

Our country cannot afford the job loss that will come from inaction. Every dollar of unemployment insurance benefits creates $1.90 of stimulus in the community. Our country will lose another 800,000 jobs if the Senate’s inaction cuts off benefits.

And if the Senate acts now, federal aid could also save jobs in essential public safety, education, and health services provided by state and local governments.

Your senators need to hear that now is not the time to procrastinate.

Demand that the Senate vote immediately to save jobs by extending UI benefits and COBRA subsidies through the end of 2010 and by providing aid to state and local governments.

The Minnesota Half in Ten Coalition – composed of Affirmative Options Coalition, the Joint Religious Legislative Coalition, and a Minnesota Without Poverty – is already planning several events to build out the movement to cut poverty in half in ten years.

• Last weekend, A Minnesota Without Poverty Executive Director, Nancy Maeker, served as the keynote speaker at three Bread for the World workshops on “Bridging the Gap—Making Work Pay: Addressing the Struggle of Low-Income Workers to Make Ends Meet.” Nancy educated dozens of activists on the Earned Income Tax Credit, strategies to end poverty in Minnesota, and the Half in Ten Campaign’s goals and priorities.
• On February 27th, A Minnesota Without Poverty will hold a statewide Gathering on Five Sites entitled, “If Not We, Then Who? If Not Now, Then When?” This web-linked program will focus on the first recommendation of the Legislative Commission to End Poverty recommendation: Restore work as a means out of poverty. All five sites will share the experience of a keynote speaker, music, conversation, report on the progress toward ending poverty, and a community-wide call to action throughout Minnesota.
• On March 25th, the Joint Religious Legislative Coalition (JRLC) will hold a day at the state capitol where over a thousand activists will gather to celebrate JRLC’s Day on the Hill (March 25). Half in Ten issues and goals will be incorporated into this day’s agenda.

Email Nancy Maeker at nancymaeker@mnwithoutpoverty.org to get involved.

There are 6.4 jobseekers for every unfilled job – and that gap is growing. Two-thirds of Americans are close to someone who is out of work. And joblessness is worst for communities of color, youth, and women who head households. While the investments made through the federal economic recovery legislation have created or saved over 1 million jobs so far, the recession is so deep that more federal action is urgently needed.

Congress and the Obama Administration are working on job creation plans. What should they do? How can we build support for job creation that does not leave the poorest people behind?

Listen in to hear the answers from a January 28, 2010 webinar featuring Deborah Weinstein from the Coalition of Human Needs, Lawrence Mishel of the Economic Policy Institute, Deepak Bhargava of the Center for Community Change, and Alan Charney of Jobs for America Now!

Click here to listen

The Half in Ten Campaign believes that any strategy to cut the U.S. poverty rate in half over the next 10 years must be based on four fundamental principles: promoting decent work, ensuring economic security, providing opportunity for all, and helping people build wealth. The president’s budget released earlier this week reflects those same principles by laying out an agenda for job creation, investing in income and work supports even in the context of a discretionary spending freeze, offering an education and workforce agenda that promotes opportunity, and championing policies that will allow Americans to save and build for the future. Half in Ten urges Congress to pass a budget resolution that adopts and builds on these investments with special emphasis on job creation for low-income and minority communities.

Here’s a closer look at how the president’s budget request matches up with Half in Ten’s principles.
Read more »

Our partners in the faith community have sent a letter to Congress asking them to ensure that job-creation strategies and other policies to ensure economic recovery are inclusive of low-income populations. Check it out below!

January 28, 2010

As communities of faith united by our common religious traditions and values of justice and compassion, we see the latest unemployment numbers released by the U.S. Department of Labor as a call to action. It is abundantly clear that the effects of the most recent recession will be felt for years to come, and we know the most vulnerable among us are disproportionately struggling.  In December 2009, the jobless rate remained unchanged at 10 percent, with a staggering 15.3 million people unemployed. Meanwhile, the alternative measure of unemployment that includes people who stopped looking for work or were unable to find full-time employment held steady at 17.3 percent.  Even as some economists state that the recession is officially over by economic terms, employers are slow to hire new staff, and workers around the country cannot find employment. In human terms, the recession is still wreaking havoc and many families feel hopeless.

As Congress prepares to take action on a much needed jobs bill, the faith community urges our leaders to be mindful of those who are at greatest risk of impoverishment and hardship in today’s economy.

As proposals are made, Members of Congress must ensure that these policies are targeted to at-risk communities, creating jobs that pay a living wage and are sustainable.

Read more »

Half in Ten is co-sponsoring a webinar on what the federal government can do to address the jobs crisis on Thursday, January 28th at 3:00 pm EST.

Click here to register and hear from the experts on what steps Congress can take to create employment opportunities in low-income and minority communities.

Speakers

• Larry Mishel, President, Economic Policy Institute
• Deepak Bhargava, Executive Director, Center for Community Change
• Alan Charney, Campaign Director, Jobs for America Now
• Deborah Weinstein, Executive Director, Coalition on Human Needs, Moderator

There are 6.4 jobseekers for every unfilled job – and that gap is growing. Two-thirds of Americans are close to someone who is out of work. And joblessness is worst for communities of color, youth, and women who head households. The private sector does not have the capacity to rebuild employment on its own. While the investments made through the federal economic recovery legislation have created or saved over 1 million jobs so far, the recession is so deep that more federal action is urgently needed.

Congress and the Obama Administration are working on job creation plans. What should they do? How can we build support for job creation that does not leave the poorest people behind? Register for the webinar and find out.

The Senate is considering legislation to spur job creation, but it isn’t clear if the bill will include policies to create jobs for the communities that have been hit the hardest in this recession.  There are three provisions that can create or save over 2 million jobs in low-income and minority communities while helping the economy overall and lifting up all Americans.

Call your senator today at (202) 224-3121 and ask them to support a jobs package that includes:

• extension of unemployment benefits and the COBRA health insurance subsidy through the end of 2010 by February 19.
• investment in direct job creation that addresses long-neglected needs in communities.
• aid to states and localities to prevent further job losses and service cuts.

Read more »

The Half in Ten Campaign applauds President Obama for supporting key job creation policies including extending unemployment insurance and COBRA health insurance benefits for the unemployed, and providing additional aid to state and local governments to save jobs, spur demand, and importantly, help, the most vulnerable weather this recession.

The American Recovery and Reinvestment Act was a critical step to help us avert another Great Depression, and is already projected to have saved or created approximately 1.6 million jobs. Yet even as the economy turns the corner, economists are predicting prolonged periods of high unemployment. President Obama’s speech included strategies to tackle the jobless rate by helping small businesses, investing in infrastructure, and growing clean energy jobs.

In addition to these kinds of investments, however, we can and we must enact policies to ensure that job creation efforts lift up all Americans, including those in low-income communities that were in crisis even before the Great Recession of 2007-2009 began. While the average unemployment rate is 10 percent, jobless rates are disproportionately high among women heads of households (11.4 percent), Hispanics (12.7 percent), and African-American men over 20 (16.9 percent).

To that end, the Half in Ten Campaign is urging Congress to act urgently to create jobs through:

• Aid to states and localities to save jobs and prevent cuts to needed services.
• Investments in work supports and safety net programs. Investing in programs such as unemployment insurance, SNAP/Food Stamps, refundable tax credits, and childcare/early Head Start programs not only helps the most vulnerable but also helps all Americans by spurring economic demand that will ripple throughout the economy to create jobs.
• A program to create public-service jobs that meet community needs, such as childcare and weatherization, while offering employment opportunities to marginalized communities.
• Strategic investments in our national service programs to offer job opportunities to young workers while strengthening the capacity of nonprofits to respond to growing poverty.
• On-the-job training and other programs that provide incentives to train and hire low-income workers.

The Half in Ten Campaign encourages the Obama administration and Congress to act now to create jobs for all Americans, including those who have traditionally been left behind during economic recoveries. Without a focused government effort on including traditionally excluded communities, poverty rates will remain unconscionably high as will disparities by race and gender.

A strategy to create decent-wage jobs and ensure that low-income workers have the opportunity to access them will be at the heart of both comprehensive poverty reduction efforts and rebuilding our economy to ensure shared prosperity for all. Half in Ten looks forward to working with Congress and the Obama administration to promote job creation that reflects these principles.

Originally Posted at: americanprogressaction.org

Alexandra Cawthorne of Center for American Progress and Melissa Boteach of Half in Ten write for the The Hill’s Congress Blog about the importance of extending Unemployment Insurance Benefits as soon as possible.

Another week passes and still no up or down Senate vote to extend unemployment insurance. This is no time to play politics. This is no time for “dithering.”

According to the National Employment Law Project, every day 7,000 additional workers are running out of unemployment benefits. That means that since the House passed its bill to extend unemployment insurance on September 22, approximately 266,000 workers have been left high and dry while the Senate continues to delay a vote on this crucial legislation—and 7,000 workers yesterday, 7,000 workers today, and 7,000 workers every day that the Senate puts off this vote are being pushed closer and closer to this brink. Read more »