Kathleen Eccles POLS 1100 Persuasive Essay 03/02/2012 On The Economy In this essay I will answer the question “What is the situation with respect to the wealth and income gap between the rich and poor in the United States? Should something be done about it, or is the gap a healthy part of capitalism?” In this essay I will talk about what makes a person/family poor and where the poverty line is in perspective to the majority of Americans are financially. Secondly I will go into what groups of people are more likely to be poor in their lifetime and for what statistical reasons. I will then talk about how location and education impact a poor persons life, and the impact that location and education play on being poor. I will demonstrate how social behaviors are born out of and lead to poverty. I will show how poverty relates to crime and social discrimination. I will then discuss what is being done in politics today to address the issues created by poverty. And finally I will form an answer to “Should something be done about it, or is the gap a healthy part of capitalism?” First to define what poverty means to Americans. The National Poverty Line is set at $18,310 for a family of three according the National Center For Children In Poverty.(1) Keep in mind this table was created in the 1960’s when it was estimated that families spend 1/3 of their income on food. Today food is 1/7 of a family’s budget and the majority of the costs that families experience is divvied up between heath care, childcare, housing costs, and transit. Now take into consideration that even using this completely out dated statistic according to the same source in 2007 43% of Children under 3 and between the ages of 3 and 4 are in families considered to have low income. 21% of the same age groups are considered poor.(1) That means that 64% of children in the United States under the age of 4 are living in low income or poor families. If these statistics were a test score that the United States Government had taken they certainly would not have passed.(1) Going a little bit further we can talk about who poor people are, and which groups of people are most likely to live below the poverty line. According to the National Fatherhood Initiative single mothers are five times more likely to be impoverished in their lifetime.(2) In 2007 it was reported that 55% of children who were reported to be low-income were either black or Latino.(1) According to the U.S. Census people who live below the poverty line usually live in clusters.(3) If poor people in the United States are living close together we must then look at what their location means to their quality of life and overall ability to receive education, aid for their needs, and other things. Common sense would dictate that if people who have financial need cluster together it might make it more difficult for those people to receive aid. Take the food bank or homeless shelters for instance the more people there are to feed and house the less food and space there is to go around. Education is certainly a factor that would be impacted similarly by clustering. The more students that are in a classroom means less individualized time with teachers additionally less materials that are available to students. Schools that are in low-income areas are less likely to be properly funded because the parents of the students who attend are less able to provide financial compensation to schools which in turn means they receive fewer and lower quality materials. Education takes us to the next level of poverty. According to the 2007 U.S. census 22.9% of people without a high school education are reported as being poor in contrast to the 3.6% of people with a college degree or higher.(4) People who are living in low-income or poor situations are less likely to afford a college education and thus more likely to be poor in their lifetime. Those who attend poorly funded schools in areas that are considered to be low-income are also more likely to find it difficult to get into college due to poor quality of education and suffering test scores. Which honestly seems like a merry-go-round of poverty because poverty leads to poor education systems, which leads difficulty in attending and receiving a higher education, which leads to poverty. So those who are born and/or raised poor are more likely to remain poor throughout their lifetime. Next lets look at what is caused by poverty. According to the National Center for Children in Poverty children who live in low-income families are more likely to experience behavioral, social, and emotional problems.(1) The NCCP also notes that a low-income status for a family can cause children to have obstructed cognitive development.(1) This could indicate that people who live in low-income situations are also more likely to commit a crime. Which is simple to understand on few levels. The first is what poverty does to a family and an individual. When you are hungry it is very difficult to resist the temptation of steeling food. When it is established that it is difficult to find proper assistance for nutrition in areas that are overwhelmed with poor people it is easy to see why people might turn to theft or crime to balance out the poverty. The second idea goes further into development and behavior of these groups of people. Poverty can lead to social and behavioral problems. Social inequality can lead to racism or resentment of those who appear to be of higher economic standard. People committing crimes because of anger influenced by extended poverty, lack of education, and poor representation. Consider too that of the people who are put into prison more than once in their lifetime become more and more likely to be repeat offenders throughout their lifetime. This will come from an obvious lack of social influence. People are taught how to survive when they are in prison, they behave in ways that are appropriate for the situation however once they leave prison they have less of the qualities that are required to adjust to society. Society also strongly discriminates against those who have been incarcerated or committed a crime. Those who have a criminal record find it hard to find quality work that can be called gainful employment after a crime. Many people who are unable to find work find themselves back in the situation that put them in the criminal category in the first place. So there are people who are literally impeded in their life from advancing any further than the mess they are already in. Which makes it easy to understand why people band together in gangs to commit crime, if it is mutually beneficial and if you are more likely to survive with higher numbers when committing a crime why attempt any type of criminal activity as an individual. This is the birth of gang formation. This might also be what contributes to the stereotype of racial minorities being apart of a gang. Because minority groups make up a large percentage of those people who experience poverty in their lifetime it is understandable that people see the crimes committed by these same minorities more often. Racism is thus born out of poverty. People have grown to expect stereotype gang activity is almost directly linked to race rather than considering what circumstances brought the situation around in the first place. However, it does not dismiss that the other racial groups are also committing these same crimes. The merry-go-round of crime also exists where those who commit crime are more likely to commit more crimes but also the perpetual formation of new offenders. People who live in families who are involved in criminal activities are more likely to justify crime and further likely to become criminal offenders later on in life. It simply follows the idea that a person is more likely to be ok doing what has already been a natural or rational part of their lives. We can see an amazing demonstration of this in Utah by those who drink and those who don’t. People raised in families who consider drinking to be wrong are more likely to consider drinking wrong. Similarly it is easier for someone who grew up in a household who either advocated or indulged in the habits of drinking to drink. The idea is as follows a person is taught to understand and accept something early in their life once it has been something accepted it is not considered a violation of their moral protocols. When we take this to the extreme of poverty and criminal activity it is easy to understand why poverty thus becomes a merry-go-round because people learn to accept it and rationalize it. So poverty seems to be something that is almost pre-determined by situation, crime is also something that seems to be almost pre-determined by situation. Something similar to a roller coaster ride that you are unlikely to get off of once you are on. So where do people turn to other than other people to understand? It is understandable that people cluster together when they are poor because a feeling of connection and understanding among community members that have the same or similar life situations. Children are thus just further inheriting poverty from their parents, friends, and neighbors. With all of this information about poverty in America what is the right move to make? What can Americans do to end poverty? To begin with take the changes that have been proposed by our current President Barack Obama. Obama Care made it easier for people living with disabilities or pre-existing medical conditions to purchase their own medical insurance. Which in turn means that these Americans, some of which are highly educated and capable of gainful employment, are able to go back to work instead of relying on federal assistance and remaining in the low-income category. Additionally the tax cuts that Obama was in the very least proposing cut taxes for the middle class as well as the top 2% of wealthy people in the United States. Take also into consideration that these kinds of reforms have met a lot of opposition from those in Congress. Tax cuts that had been blockaded for extensive periods of time and continuous threats and opposition to Obama care still exist. But who is really impacted by these changes? The wealthy certainly are not impacted in the same way the poor people are. Yet we have representatives who are fighting for tax cuts for the rich who most of which are finding loopholes so that they are not actually paying a fair amount of taxes to begin with. Take the Romney scandal for example, Romney who is paying the bare minimum in taxes if that. Should there be reform to the income gap between the poor and the wealthy? The United States is a capitalist state, which most people do not fully understand. People hold that Capitalism is the idea of the American dream where people rise up out of the trenches to be successful and gainfully employed. When in reality this is certainly far from what it actually is. Capitalism gets its name directly from the name capital, which means money. It is easy to understand how business works money spent ends up being money earned. You cannot start a business without capital i.e. investment. To sell product you must first have product to have product you have to have money to acquire or make product thus capital is necessary. Capitalism is thus the process of in order to make money you must first have money. This certainly does not seem to be an easy solution for those who have no money. So if capitalism is in fact only really furthering poverty why is it something that people are so strongly fighting for? As Americans we consider Communism and Socialism four letter words. We fear this kind of development because we are taught that it is to be feared. Government control of our resources, our goods, and our “wealth” are not something we want to even consider because what happens when the Government takes it away? We are terrified that if the Government had more control over these things that it would mean we are less likely to be able to have hard-earned money. Incentive is also called into question if people all receive the same amount of money for the jobs they do what is to say that people will work hard at their jobs rather than be lazy and not do as well. Which is a good consideration to make if you are worried about the quality of goods that are produced and general work ethics. Any type of recognized socialism is more likely to meet reproach than any other tactic so it is important to stay far enough away from the idea yet still able to incorporate the structure of the idea. What is Socialism? Many people will have Americans thinking that Socialism means more government control and other voodoo things. Realistically Socialism is defined in the idea of social order and control. The idea of cooperatives where many people have ownership rather than an elite few. Take credit unions for example credit unions are a cooperative because many people have ownership rights and are able to influence the direction of the company. Rather than thinking about Socialism as a solution or a problem consider cooperative instead. Working together to create change. An economy with a cooperative basis could be more likely to provide equal assistance to those who experience poverty in the lifetime. Cooperatives combine their resources to create better products. The idea behind using cooperatives as a relief method is not unused in American society today. Take the Peace Corp or any number of non-profit companies that band together to provide aid to those affected by poverty or disaster. This type of community involvement also mainly comes from many middle class people rather than elite. So we see people who experience low-income or mid-range income levels assisting others and improving the overall situation. The idea is if person A has a quarter and person B has a quarter and shoppers can buy a orange for 0.50 cents it is in the best interest of person A and B to combine their efforts and split an orange than remain hungry with a quarter. Bibliography (1) The National Center For Children in Poverty, 2012, http://www.nccp.org/faq.html#question2 (2) The National Fatherhood Initiative, 1994, http://www.fatherhood.org/media/consequences-offather-absence-statistics (3) U.S. Census, 2011, http://www.census.gov/prod/2011pubs/acsbr10-17.pdf (4) The Heartland Alliance, 2008, http://www.heartlandalliance.org/whatwedo/advocacy/reports/causes-of-poverty.pdf (5) Pictures in Essay provided by: The National Center For Children in Poverty, 2012, http://www.nccp.org/faq.html#question2