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Saturday, January 28, 2012

Keeping Up with the Symths


Poverty is a slippery concept. In a household fitting poverty guidelines today you may see color TV’s, microwaves, cell phones, washing machines, even air conditioning and Xboxes and numerous others things that people in other countries would see as signs of opulence or even our ancestors would find mind boggling. When I was a kid I thought if I could make $5,000 year, which was just over what I made my first year of teachings, I would have a good life and if I could make $10,000 I would be fabulously rich; and that was pretty much true. Following is today’s standards.

2011 HHS Poverty Guidelines
Persons
in Family
48 Contiguous
States and D.C.
Alaska
Hawaii
1
$10,890
$13,600
$12,540
2
 14,710
 18,380
 16,930
3
 18,530
 23,160
 21,320
4
 22,350
 27,940
 25,710
5
 26,170
 32,720
 30,100
6
 29,990
 37,500
 34,490
7
 33,810
 42,280
 38,880
8
 37,630
 47,060
 43,270
For each additional
person, add
   3,820
   4,780
   4,390
SOURCE:  Federal Register, Vol. 76, No. 13, January 20, 2011, pp. 3637-3638
Thus my hopes would be at the poverty level today. Today we make much more than those in poverty but do not at all feel rich. In fact, we’d be less that the median income of the country and use savings to maintain the standard of living we want to live. And at times, such as the recessive times we even feel poor. Standards of living are slippery. Years ago I read a study that asked folk how much more money they would need in order to live comfortably. The answer was $2,000 or $3,000 no matter what your income level was. Slippery.

Poverty and how we view it is relative. It is where we stand in relation to others in our society. Thus, in our society, where the gap between the rich and poor is widening by remarkable degrees, more and more of us feel poor and more and more live in poverty. It has to do with inequality. In our materialistic country, we see value according to income levels. So, when we see  CEOs making huge salaries and other benefits it just does not seem fair. Are they that much more value to society than someone else who works just as hard? No! And that has been true throughout human history. Folk in biblical times did not compare their economic lives to folk who lived in caves before them, but to their contemporaries.

Ronald Sider puts forthe the idea in his book, Just Generosity: A New Vision of Overcoming Poverty in America. He quotes Leviticus 25.35-36 “If members of your community become poor in that the power slips with you, you shall make them strong…that they may live with you.” I find that consistent with Warren Buffet saying his secretary should not being paying a high income tax rate than he does. Several of the ultra wealthy 1% have expressed similar sentiments. John Calvin advocated debt forgiveness every 7 years as a way of decreasing these inequities.

All this has to do with liberty, the idea that the rich should not oppress the poor as they are prone to do. Adam Smith knew this when he envisioned a fair free enterprise system. As he put it, “A creditable day-laborer would be ashamed to appear in public without a linen shirt, the want of which would be supposed to denote that disgraceful degree of poverty.”

The Bible nor free enterprise believers think that everyone absolute economic equality, but the inequality should not demean anyone. This is the major problem that our country faces today. As William Bole, who lifts these concepts for us to consider in the December 27 Christian Century puts it, “Millions of Americans – the unemployed, the working poor, the uninsured and many others – have been falling for quite some time. That some of them may be doing so with a cordless phone in their hands is not much consolation.

1 comment:

  1. As with so many things, it's all a matter of degree. Income inequality especially so -- there must be enough variation in income to (1) compensate properly for harder jobs, and (2) to give people something higher to aspire to, to work toward.

    This is the core genius of capitalism, in that it takes a moral vice (greed) and harnesses it for a broader economic good. Taken to extremes, of course, like anything, the system breaks down. Income inequality taken too far begins to create its own barriers to class mobility, particularly as public resources begin to get pinched.

    Currently reading "The Two Income Trap" - a lucid dissection of what has happened to middle-class life over the time that most households have gone from single-breadwinner households to two-income households, in terms of where the money is going, etc. (and blows apart the popular myth that it's all getting blown on consumer-mania -- hint: mostly what we're spending more on is healthcare and education).

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