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Poverty in America Josh Seifert Salt Lake Community College Econ 2010

Why does our country, The Land of Opportunity, continue to struggle with the wrath of poverty? It seems as though no matter how many Public Assistance Programs we put into action, (TANF, SNAP, Medicaid, etc.) our country still suffers with poverty. Throughout this paper I will touch on a few scenarios that I believe are the cause of this drawback in our economy. In the assignments article, Poverty in America: Why Cant We End It? (Edelman) It states, According to the most recent data available from the Census Bureau, 104 million people a third of the population have annual incomes below twice the poverty line, less than $38,000 for a family of three. This is obviously a huge problem. How can we have a prosperous nation when one-third of the country continues to live in poverty? What are we doing about it? Public Assistance Programs are something that our Government has put in place to help those in need. In Chapter 20, Public Assistance Programs, (p.423) (McConnell), it states that, Public Assistance Programs provide benefits to people who are unable to earn income because or permanent disabling conditions or who have no or very low income and also have dependent children. These programs are financed out of general tax revenues and are regarded as public

charities. This public charity should help those in poverty to survive; but it does not help raise the poverty level. According to the text, (p.419) (McConnell), the definition of poverty is when A person or family does not have the means to satisfy basic needs for food, clothing, shelter, and transportation. So by giving aid those in poverty, we are merely helping them survive, or make ends meet, until they can get back on their feet. This is the idea at least. In my opinion, and from what I have experienced, people take advantage of these programs. People find loop-holes, or ways to acquire these benefits when they do not technically qualify. Thus enabling them to not look for a better job, or have the motivation to go back to school in order to get a better job. This keeps our poverty rate high. I believe there needs to be much stricter qualifications for these benefits, and a much more in-depth application process. That being said, it is clear that Public Assistance Programs do not necessarily help the poverty rate. What does directly affect the poverty rate is the low-paying jobs in our economy. From reading the article How much do Americans Earn?, (mybudget360), the 2011 Social Security tax records state that 66% of US wage earners made less than or equal to $41,211.36. This is barely above the poverty line. The article also states that, $50,000 does not go a long way in our economy today given the cost of food, energy, housing, education, and healthcare. (mybudget360) These two facts alone tell me that Americans are not making enough money to support their families. Maybe it is because we, as American workers, are not as qualified as we could be, maybe it is because we have lost motivation for a higher education, or maybe it is because there is so much Public Assistance that it is enabling us to be content with our low-paying jobs. I feel that it is a combination of all of these factors; along with corporate greed.

From my experience, and my opinion, I feel that the last couple generations have been getting more lethargic, and more acquisitive at the same time and it is continuingly getting worse. Companies are becoming more and more greedy and paying their employees less and less. I think that there is a small amount of workers, with degrees, that are paid what they deserve. That being said, there is a much larger percentage of people without degrees who are obviously being paid even less than those with an education or degree. Those without a degree see how little people make with a degree, and how it is still very hard to get a good career; thus de-motivating those people from a higher education and keeping them stuck in their current state of poverty. I believe that it all begins with the greed of our current and future generations. Corporations need realize that they are nothing without their employees, and that paying them more, establishing higher bonuses, etc. would boost our economy. Not only that, but there would be a decline in the need for Public Assistance. American workers are not off the hook. Yes, a big problem is corporate greed, but an equally large problem is the laziness of employees. Along with employers wanting to pay as little as possible in order to boost their revenues, employees want to do as little as possible. It is a vicious circle. If employees feel that they are not being paid what they deserve, they are not going to work as hard. In turn, if employers feel that their employees are not working hard, that will be their excuse to not increase their salaries. In conclusion, it is my belief that if we, Americans, want to turn this country around and release from the grasp of poverty, we need not rely on Public Assistance. We need to work harder, gain as much education as possible, and become less greedy. The entire nation plays a part in our poverty setback. The people of this county need to work hard, gain an education, and not rely on Public Assistance. Big corporations need to pay their employees more, even if that

means slightly lowering their annual revenues. This would help boost our economy and bring us out of poverty. How we develop the American people into this attitude is the underlying issue.

Works Cited
Edelman, P. (n.d.). The New York Times. Poverty in America: Why Can't We End It? McConnell, B. F. (n.d.). Econ 2010. mybudget360. (n.d.). How much do Americans Earn? Retrieved from mybudget360: http://www.mybudget360.com/how-much-do-americans-earn-what-is-the-average-us-income/