Poverty: Does a Lack of Opportunity Lead to a Cycle of Lack of Opportunity?

By Kim Chernecky, Founder & Director,
Compassionate Community Services, Inc.
www.compassionatecommunityservices.org

The Hypothesis: Lack of opportunity such as that which results from poverty, leads to a lack of opportunity, like education, which leads to low-paying jobs, which again leads to lack of opportunity, perpetuating the cycle.

According to The Center for American Progress “37 million Americans live below the official poverty line”. As one of the richest nations in the world, numbers like these are alarming. In their article entitled “The Poverty Epidemic in America, by the Numbers” they compare these staggering figures to the population of California, which is currently about 36.5 million. In the United States of America, we have 37 million people living in poverty, while millions more barely make ends meet.

This is a huge national crisis that needs addressing. The fact that millions and millions of Americans are struggling to simply survive day to day, makes many opportunities that the wealthy take for granted, virtually unattainable. Even the middle class is beginning to struggle with every day expenses, limiting their opportunities for growth as well.

It’s well known that those with higher educations are more qualified for higher-paying jobs than those with lesser educations. There are extensive studies comparing levels of educational attainment to their corresponding salaries. Recent U.S. Census Bureau studies, What It’s Worth: Field of Training and Economic Status in 2001 (Issued September 2005) show that a much higher percentage of the American population, age 18 and up are obtaining higher educations compared to data collected in 1984.

According to this study “In 2001, more people in the United States held postsecondary educational credentials than ever before”. And this trend has continued. But for those without the financial means to pursue higher education, these opportunities to improve their situations through educational attainment are almost impossible.

The failure of salaries to keep pace with the cost of inflation and the high cost of energy seem to be some of the driving forces behind the push for higher education among working adults. Many adults who have been in the work force for years are going back to school to obtain their degrees in order to survive in the workplace. A degree today is almost as necessary as a high school diploma was 20 years ago. Without a degree, families across the nation are finding it increasingly difficult to survive financially.

According to the U.S. Department of Education, National Center for Education Statistics’ National Household Educational Surveys of 2001, 46% of American adults participated in some sort of Continuing or formal education program between 2000 and 2001.

According to "The Poverty Epidemic in America, by the Numbers" Published by the Center for American Progress “Poor children have little chance at the American Dream…” According to their studies, “children that are born in the bottom quintile have little economic mobility.” They claim that 42% of these children will remain in poverty as adults. According to their figures, the poorest 20% of the American population earns just 3.4% of the nation’s income, while the wealthiest 1% of the American population earns a whopping 19% of our nation’s income. And this gap continues to grow.

The question we must answer is why? Why do children born into poverty have overwhelmingly high odds of remaining poor into adulthood? And what can we do to stop it?

According to this same report, 12.6% of Americans earned less than $19,971 for a family of four. Many of these citizens are what is often referred to as the “working poor” earning minimum wage, which at the time of this report was just $5.15 (adjusted for inflation, at its lowest point in 50 years). So even when employed full-time, or even working multiple jobs, these families cannot make ends meet. Overwhelmingly, these same working poor citizens have little or no education, perpetuating the cycle.

When families can barely survive financially, higher education is rarely an option. Even a $35 or $50 application fee is generally out of reach for these individuals, which, in effect, removes any chance of ever improving their financial situations. And as we have seen, a lack of higher education, whether it be trade school or a degree, definitively translates into higher salaries.
Most jobs available to the uneducated tend to fall within the restaurant, retail, and construction industries, etc. where health insurance benefits are generally not available. A lack of health care services adds additional strain to family budgets, and the overall health of the individuals. This lack of health care translates into lost time at work and school, and results in more serious health conditions. These types of jobs are also generally more labor-intensive, meaning they are working much harder for less money, draining their energy besides.

According to the World Socialist Web Site in their article entitled “A million more Americans living in poverty”(published 9/1/05) the loss of health insurance and the failure of wages to keep pace with inflation has led to increased rates of poverty in the United States for the fourth consecutive year. These same catalysts have led to a decline in standards of living for many Middle Class American citizens, as well, leading many to cut back on any unnecessary spending, affecting the entire economy.

This article addresses the absurdly low poverty rates determined by our government as well. In this article, like “The Poverty Epidemic in America” article, the author is very clear that these types of incomes are “a subsistence level”, meaning they can’t possibly survive on these types of incomes. Interestingly, the article also sites the fact that according to the Census bureau, median earnings for women dropped by another percent from 2003 to 2004. Mens’ median incomes dropped by 2.3% for the same period, which according to the author, (adjusted for inflation) is less than the median income back in 1973.

In an article entitled “Despite more jobs, US poverty rate rises” by Sara B. Miller and Amanda Paulson, staff writers of The Christian Science Monitor, the authors discuss the steadily increasing poverty rates in America, despite the fact that the number of jobs increased. In the course of the year, the number of Americans living in poverty grew from 12.5% to 12.7%.

According to the authors, politicians on both sides continue to point fingers, blaming the rising numbers on the other party’s policies, but the fact remains that an increasing number of Americans are struggling just to survive. Salaries are simply not keeping pace with the high cost of living.
There is some controversy as to how the numbers are determined, with analysts holding different views, both pessimistic, and optimistic. However, the trend is alarming, as the effects of poverty are long-reaching.

An article in The Washington Post, “Poverty Rate Up 3rd Year in a Row- More Also Lack Health Coverage” confirms the findings. Published in Aug., 2004, America was still feeling the effects of the Recession. While some analysts argue that continued increases in poverty rates are common and to be expected after rebounding from recession, others disagree.

Simply stated, “This recovery has failed to reach those in the bottom half”. Jared Bernstein, from the Economic Policy Institute feels that the recovery has not reached our most vulnerable and needy citizens.
President Bush and the Republican Party report widespread recovery and job growth, while the reality seems to be that Americans are falling deeper into debt, and higher education is becoming further and further from their reach.

What some of the analysts fail to take into consideration when counting jobs is the type of jobs and the salaries they pay. These are deciding factors as to whether or not those jobs will have a positive financial impact on workers. Job growth adds little value to the economy or to the lives of those at the bottom of the ‘financial food chain’ when those jobs are paying minimum wage with no benefits.

And who typically fills minimum wage positions? Young, inexperienced workers, and those without higher educations. And therein lies the problem. Poverty limits opportunities available to obtain a higher level of education due to the lack of time and money.

Minimum wage positions require that employees work longer and harder just to get by. This necessity limits the time and energy available to pursue an education. Other family responsibilities; e.g. such as in the case of single parents, children supporting their parents, or working to help support the family, teenagers supporting siblings or themselves, etc. limits one’s opportunities to pursue an education.

According to The Washington Post article, loss of health care benefits hits the middle class and the poor the hardest. America’s wealthiest can afford to pay any out of pocket expenses, and in most cases, have higher educations which provide health care benefits as part of their compensation packages. If for some reason they do not receive benefits as part of their compensation, they can afford to provide their own.

The poor do not have that option. In most cases, minimum-wage positions do not offer the option of health care, and if they do, the bulk of the employee’s salary would be consumed by the premiums. Due to this simple reality, many of these working poor must choose not to take the health care offered, as their salary cannot cover the cost of the benefits and still support their families. This is yet another lost opportunity, as the reality (lack of sufficient funds) does not allow the employee to take advantage of the opportunity to have health insurance coverage for their family.

Opting out of the benefit plan (again, out of necessity) creates more problems by way of untreated illnesses, no preventative care, lost school and work time, etc. This again, perpetuates the problem of poverty by adding to financial losses, which adds to the financial difficulties these people are already living with.

So what can be done to stop this endless cycle of poverty and lost opportunities? The National Association of Social Workers has addressed this issue as well. In an article entitled ”Number of Americans Living in Poverty Increases” Elizabeth Clark, PhD, ACSW, MPH, the executive director of NASW isn’t surprised that the numbers of Americans living in poverty is on the rise. She sites several factors as causal, such as the loss of blue-collar jobs, decreasing wages for low-skilled workers, and increased unemployment. But Clark knows there are things that can be done to help stop this cycle of despair. “To reduce the number of families and children in poverty, better education, training, and access to resources such as child care and transportation is necessary,”

Things that many take for granted, like readily available transportation are NOT necessarily available to low-income citizens. Unavailable or unreliable transportation affects one’s ability to find and keep a job, low-paying or not. Should they find the time and means to attend school, unavailable or unreliable transportation affects one’s ability to attend class. An inability to get to class has a negative impact on one’s grades. A lack of transportation also limits the variety of jobs available to the employee, which can limit their potential for advancement once they find a job.
NASW has a legislative agenda to deal with this laundry list of problems plaguing our nation’s poorest citizens. They understand the importance of curing the cause, rather than treating the symptom. The key lies in breaking the cycle of inopportunity.

This huge body of professionals knows from first-hand experience working with the neediest, most underserved segment of the American population what types of programs can and cannot help lift people out of poverty, and how to help them stay out of poverty. In order to have lasting success, they understand that the situational impediments must be removed to allow these people to take advantage of opportunities for growth. NASW’s “Promoting Economic Security Through Social Welfare Legislation” addresses the problems that plague our nation’s poor and underserved, and offers real solutions for addressing those needs.

One of the most critical obstacles to escaping poverty is not having access to higher education. As such, making the process easier to comprehend, making funding more readily available, and addressing the real, physical needs of these individuals, by helping to provide reliable, accessible transportation is a great way to help some of our most vulnerable citizens reach for and take advantage of those opportunities that others take for granted.

Until our nation starts addressing the cause, instead of the symptoms, the endless cycle of poverty and missed opportunities will continue. In conclusion, the idea that a lack of opportunity leads to a cycle of poverty and more lack of opportunity is correct and fully supported by research. Fortunately, there are professionals (NASW) who recognize the problems and have come up with viable solutions to address and one day solve this endless cycle of poverty and inopportunity in our nation.


What can be done to break the cycle? What are your ideas for ending the cycle of poverty in the world today?


Sources:
· The Center for American Progress
· U.S. Census Bureau, “What It’s Worth: Field of Training and Economic Status in 2001”, Issued Sept. 2005
U.S. Department of Commerce, Economics and Statistics Administration
· Center for American Progress “The Poverty Epidemic in America, by the Numbers”, April, 2007
· World Socialist Web Site, www.wsws.org
“A million more Americans living in poverty”, Sept., 2005
· The Christian Science Monitor, http://www.csmonitor.com/, “Despite more jobs, US poverty rate rises
· Washingtonpost.com, “”Poverty Rate Up 3rd Year in a Row”, Aug., 2004
· National Center for Education Statistics
· U.S. Department of Education, National Household Education Surveys of 2001, “Participation in Adult Education and Lifelong Learning 2000-2001
· National Association of Social Workers (NASW), “Numbers of Americans Living in Poverty Increases”, Sept. 2003
· NASW’s “Promoting Economic Security Through Social Welfare Legislation”
· Economic Policy Institute, Research for Broadly Shared Prosperity
· Occupational Outlook Quarterly