The Buie Knife

'We Are the 99%'

Who are the 1%?  They control half of the stocks and mutual funds, 60% of financial securities, and in 2008 made an average of $1,137,684, compared to an average of $31,244 for the bottom 99%.

In 1976, the richest 1% of Americans had 9% of the income. Now they have 24%. From 1980 to 2005, 80% of the gain in income went to the top 1%. The financial services industry disproportionately accounts for that gain. The bottom 99% have seen no real increase in earnings since 1980. Why shouldn't the top 1% pay more taxes?

http://wearethe99percent.tumblr.com/ Powerful protest. A lot of people in America are hurting, and the American Dream seems to be out of reach for them.

Ezra Klein, Washington Post: "This is why I’m taking Occupy Wall Street -- or, perhaps more specifically, the ‘We Are The 99 Percent’ movement -- seriously. There are a lot of people who are getting an unusually raw deal right now. There is a small group of people who are getting an unusually good deal right now. That doesn’t sound to me like a stable equilibrium. The organizers of Occupy Wall Street are fighting to upend the system. But what gives their movement the potential for power and potency is the masses who just want the system to work the way they were promised it would work. It’s not that 99 percent of Americans are really struggling. It’s not that 99 percent of Americans want a revolution. It’s that 99 percent of Americans sense that the fundamental bargain of our economy -- work hard, play by the rules, get ahead -- has been broken, and they want to see it restored."

And yet, "We Are the 53%" who pay taxes and don't whine about it do have a point. Your life is ultimately what you make of it. It's actually good to see that so many people still believe in the American dream. It continues to be real for the children and grandchildren of immigrants. It's true that America's economic problems will not be solved by simply soaking the rich and making Wall Street accountable.

But I do believe that raising taxes on those who make more than $250,000 and making Wall Street more accountable will put America on a sounder financial footing.

Related:

• More Power to the 'Occupy Wall Street' Demonstrators

 

I Was Privileged to Meet Sargent Shriver

"Mr. Shriver was the point man, the driving force of Lyndon Johnson’s war on poverty. Between 1964 and 1968, nearly one of every three poor Americans left the poverty rolls, the largest drop in a four-year period ever recorded...Indefatigable and unrepentantly idealistic, Mr. Shriver may have directly affected more people in a positive way than any American since Franklin Delano Roosevelt. " -- Bob Herbert, NYT.

The death of Sargent Shriver at age 95 inspires me to recall meeting him several times. He was founder of the Peace Corps, leader of the War on Poverty, Democratic vice presidential candidate in 1972, and a co-founder of the Special Olympics, as well as an attorney and businessman.  As teenagers, a friend and I recognized him as he sat on a park bench in Washington, DC talking to a journalist. He interrupted the interview to graciously speak to us and make us feel as important as the well-known columnist he was talking to.

He and his wife Eunice Kennedy Shriver frequently opened their Maryland estate for good causes, and like thousands of Montgomery County residents, I was happy to be invited to a few of them, for an afternoon of fun and games.

In 2002, his son Mark ran for Congress in Maryland. I happened to work for Mark's opponent, Chris Van Hollen. But meeting Sarge Shriver at the Takoma Park metro one day, I was so charmed by the warmth, energy and enthusiasm of this man in his mid-80s that I wavered, considered changing my vote.

Beautiful remembrance by Scott Stossel, author of a book on Shriver: "if there is a heaven, Sargent Shriver is on his way there now--or no one is. Second, even if there is no heaven, his legacy of good works here on earth is an inspiration and a goad for all of us to do more and better."

Direct Link to Video on Youtube.com

Visit msnbc.com for breaking news, world news, and news about the economy

 

High U.S. Unemployment for the Long Term

Maybe I should be thankful my wife and I are working in Turkey, we have very few expenses, we don't need a car, and we are living quite modestly (except for time to travel the region). "Like our ancestors, you crossed the ocean in search of opportunity and a better way of life," a friend emails ironically. Maybe so, but I hope I AM NOT like my ancestors. I do not want to accept that America is no longer THE land of opportunity, or that the American dream may no longer be possible for many. I hope it's not true. I hope I AM NOT part of a trend of Americans leaving home and finding better opportunities abroad. 

Unlike our long-ago ancestors, I can dream about returning home in a year or two. For them, if they managed to survive a trip across the ocean, they couldn't even think about coming home a few months or a few years later. They would just have to break ties with the old country.

I couldn't bear doing that. I want my son to go to high school in AMERICA. I don't want him to spend a third of his life outside America, which he would do if we stayed through his high school years. 

That said, it seems to be a good time to be living outside the United States. White House economists predict anemic job growth in America for 2010, over 9 percent. Once Stigmatized, Food Stamps Find Acceptance even among conservatives. The Atlantic Monthly takes an in-depth look at this new era of high unemployment that will alter the life course of a generation of young people, take a huge toll on marriages, and "plunge many inner cities into despair not seen for decades. Ultimately, it is likely to warp our politics, our culture, and the character of our society for years to come." Previously, the Atlantic offered this thought-provoking piece: How the Crash Will Reshape America. 

Nobel prize-winner James Heckman points out (PDF) that the high school graduation rate in America actually peaked in the late 1960s and has since declined.

In many ways, this economic pessimism reminds me of the economic pessimism of the early 1980s. Remember that it wasn't until 1984, just in time for Ronald Reagan's re-election campaign, that recovery was fully in place. In 1982, the unemployment rate was 9.7 percent; in 1983 it was 9.6 percent, in 1984 it dropped to 7.5 percent, and continued to drop down to 5.3 percent in 1989 before starting to rise again. It didn't get below 6 percent again until 1995. (Historical U.S. unemployment figures.)

Turkey, on the other hand, is an emerging economic powerhouse.

Related:

The Dangers of Economic Optimism, by Derek Thompson.

The Dangers of Economic Pessimism, by Daniel Gross.

Who's Most Generous?

America's poor are the most generous givers, even though it's far more expensive to be poor, and 28 million Americans have neither a checking nor savings account.

To raise generous children, parents need to model volunteering and helping others. According to Independent Sector, the factors most linked to adult generosity is learning to be generous as a child by:

• Seeing an admired person who isn't a family member help others.
• Seeing a family member help others.
• Doing volunteer work.
• Raising money door to door.
• Being active in student government.
• Belonging to a youth group, such as the Boy Scouts.
• Being active in a religious organization.
• Being helped by others.

The biggest deterrent to generosity: not seeing a family member help others.

Will Candidates Embrace Vision to Build Online Communities for Real-World Action, Such As Fighting Poverty?

I posted the following to a discussion on Ed Cone's blog about the legacy of John Edwards' campaign, particularly the emphasis on fighting poverty. Ed started with a quote from Edwards' final speech: "Do not walk away from what's possible, because it's time for all of us, all of us together, to make the two Americas one."

Many commenters claim Edwards is simply a hypocrite, an "empty suit" who cares no more about poverty than anyone else, and was simply using the issue to preen and enhance his own reputation. But I pointed out:

John Edwards recruited hundreds if not thousands of people to join him on Habitat for Humanity volunteer rebuilding projects in the Gulf Coast. Indeed, after he withdrew from the race, he spent a good part of the afternoon rebuilding a house in New Orleans. Members of his "One Corps" participated in canned food collections for the poor, and were encouraged to set up and work in food pantries for the hungry.

He and Elizabeth set up a "college for everyone" program in two North Carolina communities with their own money.

So, his commitment to the poor wasn't just grandstanding, he actually did tangible things. Even if you cynically assume he was simply image-polishing, it was image-polishing with far more positive outcomes than the other pols who simply talk about helping the poor.

The Edwards campaign pioneered the notion of supporters using online organizing tools for real-world action, now. Though his campaign never really got off the ground with a single primary win, I do hope other candidates will utilize his model to organize people for social good. That, to me, is potentially the true legacy of his campaign.

I wrote about this more than a year ago: http://jimbuie.blogs.com/journal/2007/01/on_building_onl.html

Edwards never "clinched the deal" with me in terms of his presidential candidacy, never persuaded me that he would be the best president, but I'm sorry these ideas didn't catch fire. I do hope there's still a chance they will.

Sam, a conservative commentator, replied that Edwards is simply "a limousine liberal, do as I say, not as I do," which misses the point. Fighting poverty is much larger than liberal politics vs. conservative politics. From a religious perspective, many people believe it's a commandment. If Edwards quietly, secretly gave away all his money to fight poverty, yeah he could have placed maybe a drop in the bucket of fighting poverty around the world. Maybe he will still do that as a private citizen, I dunno. But he was trying to create a movement, focus national and even international attention on the issue. That is the only way the systematic issues are going to be addressed -- if millions of people focus attention on it.

Related:

• Elective Career of John Edwards Comes to An End; So Does His Campaign Against Poverty
• On Building Online Communities for Real-World Action

In Helena, Montana, 'Pogoman' Draws Attention to Homelessness, Affordable Housing

I ran into this guy bouncing around the state capitol in Helena, Montana to draw attention to homelessness and affordable housing in the U.S. Details on his interesting message can be found at www.pogoman.org

At one point in the 1880s and 1890s, Helena was the richest town in the US, thanks to gold strikes. The "gold rush" mentality can still be found in the town's main thoroughfare, called Last Chance Gulch -- viewed as the visitor's "last chance" to strike gold.

Finally, an Increase in the National Minimum Wage

For the first time since 1997, America's lowest page workers are getting a raise. Congress has finally passed an increase in the minimum wage, from $5.15 an hour to $5.85 in September, 2007. Another 70 cents an hour will be added next year, and by September 2009, the minimum wage will be $7.25 an hour. CBS News report: "Democratic leaders attached the provision to the $120 billion Iraq war spending bill, which was vetoed by the GOP-controlled White House on May 1 because Democrats insisted on a pullout date for American troops. But with the House passing a rewritten bill 280-142 and the Senate 80-14, the end is likely near for the longest stretch without the federal pay floor rising since the minimum wage was established in 1938."

Preying on the Poor

Businesses continue to extract huge profits from the working poor, many of whom are falling into a deep hole of debt from which they may never recover. In “The Poverty Business,” Business Week investigates U.S. companies that are extracting more profits from low-income consumers, charging nearly 25 percent on car loans, 10.4 percent for income tax refunds, and $199 in fees and initial payment on a credit card with a $300 limit. As one reader observes, it's "the new American caste system." A consumers points out: "If you have money to begin with, you don't have these issues or these kinds of bills. You don't have to worry about the rent or pay double for a car."

Related:

• Social Immobility in the U.S.
• It's Expensive to be Poor
• A Highly Charged Relationship: Americans and Their Credit Cards (Washington Post)

If You Think 'Entitlements' Are Too Great, Take the Food Stamp Challenge

June 5 is Hunger Awareness Day, coordinated by America's Second Harvest and the network of food banks around the country. Shockingly, some 35.1 million Americans -- 12 percent of the population -- could not put food on the table at least part of the time in 2005 (source), in the richest country in the world. More than 26 million Americans received food stamps, according to the U.S. Department of Agriculture.

The Farm Bill, which funds the Food Stamp Program, is up for renewal this year, and several leaders are attempting to dramatize just how meager food stamp allotments are in feeding the hungry by trying to live on a Food Stamp budget. Food stamp allotments haven't been increased since 1996 -- the average benefit is $21 a week, or $1 a meal or $3 a day. To demonstrate how difficult it is to feed oneself on $3 a day, people are taking the Food Stamp Challenge (NPR coverage of Oregon challenge) -- could you feed yourself adequately on $3 a day or $21 a week? If not, shut up about "handouts" or "the dole."

Aside from food stamps, the only thing a hungry family can do is rely on food banks. They report that demand is increasing, at a time when government food donations and private cash contributions have fallen.

To show up at a food bank, or to apply for food stamps, a family often has to overcome pride and shame, and a feeling of being stigmatized, which they needn't feel so deeply. More than half of all Americans will receive food stamps at some point between the ages of 20 and 65. At any given time, one in nine households wonder how they are going to feed themselves for the month. For the vast majority, receiving food assistance does not become a way of life but simply help in times of trouble. Only 1 in 10 food stamp recipients who are children, for example, receive them for five consecutive years.

But qualifying for food stamps is not easy. A lot of people who are eligible for food stamps don't know it, or with limited literacy skills, don't get through the voluminous forms to qualify. Many families cannot get food stamps because their income is slightly above the limit. A family of three must earn less than $22,000 a year to qualify. That limit hasn't been changed since 1996, meaning that food stamps by less and less each year. Congress should raise the income limits, and tie the benefit formula to inflation, so more children and senior citizens get enough to eat.

Related:

• Still Going Hungry in America

One Out of Three Jobs in U.S. Offer Few Benefits, Pay Poorly

Some 40 million jobs in the United States – one out of every three – pay low wages, and few of these jobs offer upward mobility or such basic benefits as health insurance, paid leave and retirement savings. It is significantly harder for people in low-wage jobs to work their way into the middle class today. Read the full report at http://inclusionist.org/files/lowwagework.pdf

Related:

Don't Get Sick: Nearly Half of North Carolina Workers Lack Paid Sick Days (NC Budget and Tax Center report.)

Nationally, just 51 percent of workers have paid sick leave (Institute for Women's Policy Research fact sheet.)

Social Immobility in the U.S.: Born Rich, You'll Likely Stay Rich. Born Poor, Your Chances to Rise in the U.S. No Greater Than In Aristocratic Britain and Less Than in Canada or Norway.