Debra McCown | AP
Four out of five U.S.
adults struggle with joblessness, near-poverty or reliance on welfare
for at least parts of their lives, a sign of deteriorating economic
security and an elusive American dream.
Survey data exclusive
to The Associated Press points to an increasingly globalized U.S.
economy, the widening gap between rich and poor, and the loss of
good-paying manufacturing jobs as reasons for the trend.
The findings come as
President Barack Obama tries to renew his administration's emphasis on
the economy, saying in recent speeches that his highest priority is to
"rebuild ladders of opportunity" and reverse income inequality.
As nonwhites approach a numerical majority in the U.S., one
question is how public programs to lift the disadvantaged should be
best focused — on the affirmative action that historically has tried to
eliminate the racial barriers seen as the major impediment to economic
equality, or simply on improving socioeconomic status for all,
regardless of race.
(Read more: Poverty rate to hit highest level since 1965: economists)
[Jobless claims up 7,000] PLAY VIDEO CNBC's Rick Santelli reports that initial jobless claims were up 7,000 to 343,000 this week, while durable goods are up 4.2 percent. With Richard Bernstein, Steve Liesman, and Tom Higgins, BNY Mellon's Standish Investment Management.
[Jobless claims up 7,000] PLAY VIDEO CNBC's Rick Santelli reports that initial jobless claims were up 7,000 to 343,000 this week, while durable goods are up 4.2 percent. With Richard Bernstein, Steve Liesman, and Tom Higgins, BNY Mellon's Standish Investment Management.
Hardship is particularly growing among whites, based on
several measures. Pessimism among that racial group about their
families' economic futures has climbed to the highest point since at
least 1987. In the most recent AP-GfK poll, 63 percent of whites called
the economy "poor."
"I think it's going to get worse," said Irene Salyers, 52,
of Buchanan County, Va., a declining coal region in Appalachia. Married
and divorced three times, Salyers now helps run a fruit and vegetable
stand with her boyfriend, but it doesn't generate much income. They live
mostly off government disability checks.
"If you do try to go apply for a job, they're not hiring
people, and they're not paying that much to even go to work," she said.
Children, she said, have "nothing better to do than to get on drugs."
While racial and ethnic minorities are more likely to live
in poverty, race disparities in the poverty rate have narrowed
substantially since the 1970s, census data show. Economic insecurity
among whites also is more pervasive than is shown in the government's
poverty data, engulfing more than 76 percent of white adults by the time
they turn 60, according to a new economic gauge being published next
year by the Oxford University Press.
(Read more: What is 'wealthy'? $5 million and plenty of cash)
The gauge defines "economic insecurity" as a year or more
of periodic joblessness, reliance on government aid such as food stamps
or income below 150 percent of the poverty line. Measured across all
races, the risk of economic insecurity rises to 79 percent.
Marriage rates are in decline across all races, and the
number of white mother-headed households living in poverty has risen to
the level of black ones.
"It's time that America comes to understand that many of
the nation's biggest disparities, from education and life expectancy to
poverty, are increasingly due to economic class position," said William
Julius Wilson, a Harvard professor who specializes in race and poverty.
He noted that despite continuing economic difficulties, minorities have
more optimism about the future after Obama's election, while struggling
whites do not.
"There is the real possibility that white alienation will
increase if steps are not taken to highlight and address inequality on a
broad front," Wilson said.
Nationwide, the count of America's poor remains stuck at a
record number: 46.2 million, or 15 percent of the population, due in
part to lingering high unemployment following the recession. While
poverty rates for blacks and Hispanics are nearly three times higher, by
absolute numbers the predominant face of the poor is white.
More than 19 million whites fall below the poverty line of
$23,021 for a family of four, accounting for more than 41 percent of the
nation's destitute, nearly double the number of poor blacks.
Sometimes termed "the invisible poor" by demographers,
lower-income whites generally are dispersed in suburbs as well as small
rural towns, where more than 60 percent of the poor are white.
Concentrated in Appalachia in the East, they are numerous in the
industrial Midwest and spread across America's heartland, from Missouri,
Arkansas, and Oklahoma up through the Great Plains.
Buchanan County in southwest Virginia is among the nation's
most destitute based on median income, with poverty hovering at 24
percent. The county is mostly white, as are 99 percent of its poor.
More than 90 percent of Buchanan County's inhabitants are
working-class whites who lack a college degree. Higher education long
has been seen there as nonessential to land a job because well-paying
mining and related jobs were once in plentiful supply. These days many
residents get by on odd jobs and government checks.
Salyers' daughter, Renee Adams, 28, who grew up in the
region, has two children. A jobless single mother, she relies on her
live-in boyfriend's disability checks to get by. Salyers says it was
tough raising her own children as it is for her daughter now, and
doesn't even try to speculate what awaits her grandchildren, ages 4 and
5.
Smoking a cigarette in front of the produce stand, Adams
later expresses a wish that employers will look past her conviction a
few years ago for distributing prescription painkillers, so she can get a
job and have money to "buy the kids everything they need."
"It's pretty hard," she said. "Once the bills are paid, we might have $10 to our name."
Census figures provide an official measure of poverty, but
they're only a temporary snapshot that doesn't capture the makeup of
those who cycle in and out of poverty at different points in their
lives. They may be suburbanites, for example, or the working poor or the
laid off.
In 2011 that snapshot showed 12.6 percent of adults in
their prime working-age years of 25-60 lived in poverty. But measured in
terms of a person's lifetime risk, a much higher number — four in 10
adults — falls into poverty for at least a year of their lives.
The risks of poverty also have been increasing in recent
decades, particularly among people ages 35-55, coinciding with widening
income inequality. For instance, people ages 35-45 had a 17 percent risk
of encountering poverty during the 1969-1989 time period; that risk
increased to 23 percent during the 1989-2009 period. For those ages
45-55, the risk of poverty jumped from 11.8 percent to 17.7 percent.
Higher recent rates of unemployment mean the lifetime risk
of experiencing economic insecurity now runs even higher: 79 percent, or
four in five adults, by the time they turn 60.
(Read more: 'Alarming' unemployment could get worse: ILO)
By race, nonwhites still have a higher risk of being
economically insecure, at 90 percent. But compared with the official
poverty rate, some of the biggest jumps under the newer measure are
among whites, with more than 76 percent enduring periods of joblessness,
life on welfare or near-poverty.
By 2030, based on the current trend of widening income
inequality, close to 85 percent of all working-age adults in the U.S.
will experience bouts of economic insecurity.
"Poverty is no longer an issue of 'them,' it's an issue of
'us,'" says Mark Rank, a professor at Washington University in St. Louis
who calculated the numbers. "Only when poverty is thought of as a
mainstream event, rather than a fringe experience that just affects
blacks and Hispanics, can we really begin to build broader support for
programs that lift people in need."
The numbers come from Rank's analysis being published by
the Oxford University Press. They are supplemented with interviews and
figures provided to the AP by Tom Hirschl, a professor at Cornell
University; John Iceland, a sociology professor at Penn State
University; the University of New Hampshire's Carsey Institute; the
Census Bureau; and the Population Reference Bureau.
Among the findings:
For the first time
since 1975, the number of white single-mother households living in
poverty with children surpassed or equaled black ones in the past
decade, spurred by job losses and faster rates of out-of-wedlock births
among whites. White single-mother families in poverty stood at nearly
1.5 million in 2011, comparable to the number for blacks. Hispanic
single-mother families in poverty trailed at 1.2 million.Since 2000, the poverty rate among working-class whites has grown faster than among working-class nonwhites, rising 3 percentage points to 11 percent as the recession took a bigger toll among lower-wage workers. Still, poverty among working-class nonwhites remains higher, at 23 percent.
The share of children living in high-poverty neighborhoods — those with poverty rates of 30 percent or more — has increased to 1 in 10, putting them at higher risk of teenage pregnancy or dropping out of school. Non-Hispanic whites accounted for 17 percent of the child population in such neighborhoods, compared with 13 percent in 2000, even though the overall proportion of white children in the U.S. has been declining.
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